Are you satisfied with your business this year? What are you going to do differently? How can you hire the right people to support your vision? Unfortunately, many small business owners don’t spend enough time planning their future. This is very clear. Managers must keep up with the daily demands of their business, including payroll calculation, taxes, product/service provision and customer expectations.
Fortunately, the end of the year is a great time to fully evaluate your business. Your business needs an audit. Most people can prescribe a test with a local doctor based on their medical history and personality traits (age, gender, family medical history). The doctor will perform many tests, including blood, vision, heart and hearing tests.
In fact, something like a person’s weight is not the only indicator of good overall health. Similarly, small businesses can also benefit from a good review. Successful entrepreneurs think strategically when they find themselves in a hostile global environment.
After 27 years of project management and more than 100 organizational evaluations of business organizations, I understand that large and small organizations are struggling to conduct their business efficiently. This article explores how small businesses need to effectively control their organizations.
Welcome to the new world! But nearly a year after the pandemic, the full impact on the U.S. economy is unclear. According to the latest research, more than four million Americans have left the workforce compared to February last year, and nearly 10 million are now unemployed.
In fact, the number of unemployed continues to rise. According to a business study conducted between March 28 and April 4, 2020, small businesses were severely affected by the blockages caused by Covid-19.
In an analysis of more than 5,800 small businesses (covering a network of 4.6 million small businesses), the investigation revealed the damage caused by the pandemic. The results showed obvious damage from the pandemic. So far, 43% of businesses have been temporarily closed, and almost all of these closures have been related to COVID-19.
Respondents stated that they were temporarily closed, which mainly indicated reduced demand and health problems for workers as reasons for the shutdown. In fact, the companies said they have reduced their active employment by an average of 39% since January.
All industries have been affected. However, employment in retail, arts and entertainment, domestic services, hospitality and hospitality fell by more than 50%. Some companies are hoping for the help of the state.
According to Babson’s Goldman Sachs report, 88% of small business owners in the U.S. have already exhausted their pay security (PPP) loan; The Small Business Association has provided these loans specifically to help businesses maintain their workforce during the pandemic. These loans have proved useful.
However, these successes do not change the fact that more than 32% of PPP loan recipients have already laid off employees or reduced their salaries. In fact, 43% of black small business owners said their business’s cash reserves would be exhausted by the end of the year because of the Covid-19.
Small businesses and entrepreneurs today need reform, given the potential influence of Covid-19, they can change their thinking through their passion. However, small businesses must be prepared to assess their current activities and make the necessary changes.
For example, customers mostly come to the Internet to purchase services because of restrictions. If the company does not have a presence in the network now, then this business does not exist. Bill Schrader, an Internet pioneer and CEO of PSINet, explains the importance of online visibility: “Almost in the blink of an eye, the Internet has evolved from a technical miracle into an irreplaceable thing.” With the right organization’s diagnosis, a business can achieve longer-term success. Therefore, proper control is crucial.
Here are some important questions to help you do your self-check:
Do you have a clear vision for your business? What is this?
Do you know why your customers buy from you and why others don’t buy from you?
What results do you get from your marketing? Do you have an effective online presence?
Do you collect data or data about your customers and competitors?
Do you follow trends in your industry? If so, what are the main trends?
How do you measure results (i.e. key performance indicators such as cash flow and revenue)?
What are the marketing strategies of your main competitors?
Have you assessed your strengths and weaknesses (such as SWOT analysis)?
Thus, successful international companies, such as IBM and Google, have permanent systems in place to evaluate their performance. Let’s call this process organizational control.
Small businesses that want to succeed in this global technological climate should be able to conduct such self-assessment or audit. This article demonstrated the importance of good auditing to improve the business by asking questions. In many cases, small businesses do not need such organizational control.
There are several organizations such as The Small Business Administration and local universities that can help in this process. Have you audited your business this year? It’s not too late. Start the New Year with a health check-up.