Stage 1 – Identify where your business is now – your core activity in the business determines whether your business is in one of the following three categories:
1. RESCUE – You are a WORKER in the business and your focus is juggling cash
a. The business is losing money
b. You receive no salary
c. You are continually putting money into the business
d. You do everything – You are the business
e. You work IN the business putting out fires
The business is at a risk of closing down and you losing everything you have worked for.
A. Immediate attention with a number of strategies is required to release cash into the business
B. Leakage needs to be identified first releasing profits and cash floating within the business back into the business to stabilize the business before it’s too late.
FACT: 35 – 40% of all businesses fall within the RESCUE category.
2. IMPROVE – You are a OWNER in the business and your focus is stability and staff
a. The business is making money but not reaching its potential
b. The business has a stable cash flow
c. The business is well established
d. You would like to have more time to work ON the business
e. Owners receive salaries, but no dividends are paid
f. You have a high mortgage
g. The business has low value
A. Leakage or profits and cash floating within the business can be identified readily and put back into the business and the owner’s pocket.
B. Options available to properly strategize the growth path of the business and work on all critical areas to make it successful, more profitable and valuable.
FACT: 40 – 50% of all businesses fall within the IMPROVE category.
3. GROW – You are a DIRECTOR in the business and your focus is strategy and planning
a. The business is valuable
b. The business makes good money
c. The business has excellent cash flow
d. The owners receive generous salaries and the business pays dividends
e. The team is running the business
f. You have time to work ON the business
The business has opportunities to reach the next level.
A. The right strategies need to be developed with a clear plan, management and implementation of tasks across all areas of the business
B. These businesses need to be managed correctly for the growth – it is easy to be complacent, lose profits and slip back.
FACT: 0 – 15% of all businesses fall within the GROW category.