I’ve mentioned before that the BDC offers some useful business-management advice on their website. It’s worth taking a break occasionally from the day-to-day operations of the shop and checking in on the latest business management advice being offered; even if it’s the kind of stuff that’s inclined to bore you. I did so recently and an article on four trouble spots that might indicate that a business is at risk, caught eye.
In some of these cases you may be able to address the issue yourself once you understand it, but my advice would be to not hesitate to get help from a qualified source.
Here are the four trouble spots addressed as questions:
- Are your revenues enough to cover all your expenses and produce your desired profit? There may be many reasons (temporary or longer-term) why the answer could be, no. If so, it’s important that you immediately come to grips with the issue, understand it, and plan to deal with it.
- Do your prices cover your costs? Your pricing must take into account the unique circumstances of your business and cannot—as many do—just be based on what your competition is charging. This is one critical aspect of your business with which you could do well to get some qualified help.
- Are you as efficient as you could be? Are you making the most of productivity-boosting technology? Are your shop processes as efficient as they can be?
- Do you know the profit margin on each of your products and services? Unless you do, some may be too low and some may not be worth producing at all if the margins can’t be improved. Again, qualified help may be needed here.
If any of these trouble spots sound familiar, do something about it now. It may bore you to tears, but unfortunately it cannot be ignored.