- Problem – the business doesn’t have a business model that generates cash. Recommended solution – get a dashboard that includes measures of cash and cash needed in the near future.
- Problem – the owner doesn’t listen to others. Recommended solution – Employees are not the “others” to listen to.
- Problem – the business doesn’t have focus. Recommended solution – focus on one type of customer.
- Problem – the business doesn’t know what drives profits and cash. Recommended solution – everyone in the company should have a number that is particular to what they do.
These are all problems that are valid and serious. We see them everyday in the businesses we meet and in our clients’ businesses. The deeper question is how is a business owner to implement Josh’s great suggestions?
- How do you get a dashboard? What elements need to be measured on the dashboard? Will the data in the dashboard be timely and valid?
- Who are the “others” I need to listen to? Where do I find them? How do I know they’re the right ones? How much will it cost me to get their advice?
- How do I figure out the right type of customer to focus on? How do I measure my current customers? What about my current customers should I be measuring? Who will do all the measuring? What will I do with the customers I don’t focus on?
- What are these numbers that each employee should have? How do I figure out which number is right for all of them? How will I measure those numbers? How will I communicate those numbers to the employees? Should I tie their compensation to those numbers? If so, how do I develop and implement new comp plans? Who will do al this work?
Lastly, if these are four reasons companies stay in trouble. Isn’t it also true that these same reasons companies get in trouble? Wouldn’t it be a good idea for a business owner to look at these now, rather than wait until they get into serious trouble?
Josh’s company is Stage 2 Planning Partners and his Objective Review is a good way to start to tackle these and many other issues. Fortunately, my Partners at B2B CFO® are also highly experienced in helping business owners with many of these issues. To learn more about how we use our proprietary Game Plan™ to take companies to a higher level of success, visit www.b2bcfo.com.