This is a question that should be occupying the mind of any CEO or founder. It’s a more searching question than “how profitable is your business?”, and the answers are more rewarding, and more helpful for your long-term survival in the marketplace. A healthy business is resilient, about to face problems, solve and keep growing whereas an unhealthy business could be very profitable and still fail.
Today we’re taking a look at some of the ways you can define business health and look for those qualities in your own business.
Your brand is a very important facet of your business – it’s how customers understand what you have to offer, how you’re different from the competition and (ideally) why you’re the right choice for them).
A strong brand is a hallmark of a healthy business and indicates a strong level of loyalty and trust from your customers which can help you endure bad times. Brand tracking surveys give you an insight into how things stand with your brand at any given moment, allowing you to see the results of the decisions you’re making, and correct course if necessary.
Revenue is important for all businesses – money coming in from customers and clients is what allows you to turn a profit. It’s not the most important quality on the financial side of your business, however, and if you prioritise it over profitability, retention and return on investment then you risk collapse. It’s well worth working with the accountants and specialists who can set up systems to track and interpret the movement of money through your business so you can understand not just how much money you’re making, but where it’s going and why.
Your staff are much, much more than bodies in an office or hours of productivity. As members of staff acquire more skills and experience, more commitment to the business, more seniority they rise in value and they can’t be compared with a new starter at the same level. If you don’t have a good level of staff retention, you risk the loss of vital institutional experience, of the investment you’ve made in people when they’re just starting out, and the culture you’ve fostered.
Make sure you’re running a healthy business for your staff – whether it’s in informal chats or a carefully designed survey process – so stand the best chance of retaining those valuable skills, experience and people. A collapse in morale is almost always followed by a collapse in productivity and possibly by a mass exodus of your most valued employees – and if you’re not keeping track of what makes them feel valued, you have no one to blame but yourself!