If you’re wanting to assess the trajectory of your business, or if you’re wanting some tips for getting out of a slump, read on.
People and businesses usually don't go into a slump overnight.
A 'slump' or stagnation is often caused by a lack of being fully 'in' something. Slumps are usually the result of poor choices, habits, and thinking that we may not even realize exists. We are simply left with the evidence of our business or relationship floundering and wondering how we got there. Being fully present and mentally aware is a must. It's not the only cause to stagnation though.
“Desire and the right amount of effort towards the right things will certainly increase the probability of success.”
Mustering up enough desire for your business to grow and flourish isn't simply going to make your business grow and flourish.
Desire and the right amount of effort towards the right things will certainly increase the probability of success.
Any fitness expert will tell you that to train well you should push your body enough to exert effort that is going to stretch and test your muscles. On the flip side, they will also tell you that over-exertion will increase your fatigue and chance of injury--rendering you unable to exercise or function as you should.
So, there seems to be this balance. The right amount of stretching for your business is good for you to continue to push forward, but you may have experienced a plateau from trying to do too many things. The late S. Truett Cathy, founder of Chick-Fil-A, was often asked why he wouldn't expand his popular chain to meet the demand. He is known for telling people that his philosophy was that they, as a company, needed to get better before they got bigger. This wise man knew what his business needed and when and wasn't letting sociological pressures dictate his business plan.
So, how do you assess where your business is? And how do you pull yourself out of a slump? Here are a few things to help you gauge the trajectory of your business:
1. How’s your customer interaction?
Wait, you’re not tracking this? Reviews, organic likes on social posts, questions from customers, likes and follows for your business, video views, comments, and other ways customers are interacting with your business should be tracked every week and assessed every month. Understanding customer and audience engagement for your business will help you curb the onset of stagnation. This understanding will help you know when things were working well and perhaps where to spend more marketing dollars.
2. Are you investing?
When is the last time you’ve invested in equipment, technology, personnel, training, and marketing? If you’ve been stagnant in investing in these areas compared to prior years in the life of your business, your sales may also be stagnant. Marketing is certainly an investment for your business that should not be ignored. If you’re not investing in marketing, you may be failing to realize the potential return on that investment. Good marketing should bring you more customers and more sales. Receive a quick and free marketing consultation here.
3. Look at your gross revenue.
Net revenue is really important, but gross revenue tells you about trends in your business. How are you doing compared to last year at this time? How are you doing compared to last month? We can’t stress enough the importance of knowing your numbers as a business leader—especially these numbers.
4. How are you doing in relation to your business plan?
Your business plan is effectively the vision for your business. Maybe things have changed along the way, so maybe it’s time to adopt a new business plan. You should revisit your business plan at least every six months. This will help you assess how you’re doing with that plan—your vision. Frequent revisiting of the company vision may also help reinvigorate your passion and remind you of why you started your business.
For a more in-depth business consultation at no cost, fill out the form here and we’d love to have a conversation with you.
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