How Do You Confidently Navigate to Business Success?
Business Question
I love Waze, the driving app. Over Labor Day, while on the road to Michigan, it alerted us to an accident and suggested a better route. Once you have a tool like that, you wonder how you ever managed without it.
Wouldn’t it be cool if you had an app like that for your business? “Hey, business owner. Time for a change!” Your business is on a path, but do you know where it’s heading?
The Anxiety of Uncertainty in Business
In traffic, not knowing what’s ahead is stressful. Sometimes, you trust your gut and take a new route; other times, you sit and stew, wishing you had known sooner. Business is no different—except the stakes are much higher. Here are some common concerns business owners face:
How much will we make this year—and next?
Can I afford to hire, and should I?
Who are my best customers, and how can I keep them?
Do I have enough cash for payroll and investments?
Where should I focus sales efforts to boost growth?
Just like Waze helps you navigate, you need a system to guide your business decisions confidently. But who—or what—helps you do that?
Build Your Business GPS: The Budget
Thankfully, your business can have its own GPS. Unfortunately, it’s called a budget (not as catchy, but just as powerful!). Here’s how Heather, CEO of Acme Distributors, built her “Business Waze”:
Set Clear Goals
Heather started by defining key results: grow sales to $20 million, net a $5 million profit, and achieve 86% customer retention. This step laid out where she wanted her business to go. It also required a hard look at the resources and actions necessary to get there. It sounds a lot like strategy, right?
2. Identify What Needs to Change
Achieving these results requires different actions. Heather knew her sales growth target wasn’t just going to happen. So, she asked, How?
Should she hire more sales reps? Inside, outside, or both? What would it cost?
How will Acme attract new customers? What about getting existing customers to buy more and different products? How do we keep more customers? Identifying these actions helped Heather pinpoint her needed capability and the costs involved.
3. Focus on the Big Picture
Acme’s income statement has 75 accounts, but Heather focused on the 5-7 key areas that drive results. Don’t sweat the small stuff—keep your focus on what really matters.
4. Create Accountability and Celebrate Wins
Heather’s team knew what was expected of them, and she aligned incentives to key outcomes. Whether it was a bonus for hitting sales targets or rewards for cost-saving initiatives, Heather made sure her team was engaged and motivated. And when they succeeded, she celebrated—building a strong, positive culture along the way.
Time to Navigate: Track Progress and Adjust
With a clear strategy and an engaged team, Heather could now build her performance dashboard—her “business map.” Acme’s key performance indicators (KPIs) stemmed directly from budget assumptions and goals.
But simply tracking KPIs isn’t enough; you need to dive deeper. What do the numbers really mean? Are you on the right path, or is it time to course correct?
Don’t Go It Alone—Partner with an Expert
Building a forward-looking process like Heather’s takes skill. Your business generates tons of data—sales, cash flow, customer retention—and that data can be used to assess opportunities and validate assumptions. But if you’re not into numbers, this can be overwhelming.
That’s where we come in. Let us help you create a clear financial path for your business and give you the confidence to navigate toward success. Contact us today to start building your business GPS!