Do You Take Time To Reflect On Your Current Business Position?
Many people long for starting their own businesses. And businesses crop up every day worldwide. However the rate at which they collapse is high. According to Investopedia, 30% of the new businesses fail within the first 2 years. 50% fail during the first 5 years. And 66% fail during the first 10 years. One of the reasons new businesses fail is failure to take a breath to define their current business position.
This post is dedicated to all small businesses that are business success-oriented. If you want to survive in business in your first years, it’s important to learn how to work on your business as opposed to just being in business. To effectively do this, you need to take a breath to define your current business position.
What is your Current Business Position?
This is a question small businesses should ask themselves. By looking at your current business position, you’re reflecting on where you are now in your business. Know that you’re where you are because of the actions you have taken and the decisions you have made along the way. Where you will get to in future will be a result of the choices and actions you make now. Considering today as your first day of the rest of your business life is so crucial because your journey begins from where you’re now.
Why is it Important to evaluate your Current Business Position?
Many times small business people find themselves so busy in their businesses that they rarely take time to reflect on where they have come from, their current business position and the future of their businesses. They keep on doing what they have always been doing. And because of that they always continue getting what they have always been getting.
To get out of that scenario, it’s vital, from time to time, to take a step back from your daily workload and assess exactly where you are now before you continue with your business journey. Where you are now may not be a good business position and if you do nothing to it, the chances of failing to succeed in business are high. And you cannot take your business from one level to another unless you take this vital step back from your daily business tasks.
Be Honest with yourself when assessing your Current Business Position!
Assessing your current business position is a complicated task indeed. Why? It’s because you have to be so disciplined and focus on facts instead of your personal feelings. You have to focus on tangible facts. These facts may involve some detail, which you have never paid attention to. You therefore have to be careful as you collect this information so that you don’t rely on guesswork. It’s these details you get which act as a foundation on which you base yourself to move forward.
For example, in our laser engraving business we sat down to reflect on the effectiveness of our marketing strategies. And we focused mainly on the internet marketing strategy for one month. We went into the details of knowing how we get website visitors from whom we get real customers and this is what we discovered.
- 73.9% of our website visitors came from organic search from Google. These were mainly people who search the internet using Google Search Engine. We are doing pretty well here because of our continued effort with our article marketing strategy on this blog.
- 23.4% of our website visitors were from direct traffic. These are visitors who directly enter our company URL (www.golaserengraving.com) into their browser.
- 1.4% of our website visitors were from referral traffic. These are visitors who find us through other website that have linked to our website other than search engines. We are doing badly in this aspect.
- 1.4% of our website visitors were from social media. And these are visitors who come to our website from social networks like Facebook, Linkedin and Twitter. We are so poor in this area.
What Does the above Analysis Imply?
Looking at the above data, one can conclude that GoLaserEngraving.com relies mainly on one source of visitors. Analytically, it’s not good to rely on one source of website traffic because if that source stops generating visitors to your business, you can collapse. But that is our current business position as far as our internet marketing strategy is concerned.
What should we do then? What we need to do is to focus more on other sources of traffic. And these will include mainly traffic from social media and referral traffic. We need to lay strategies that will bring to our website traffic from those two sources. And by so doing, we shall lay a strong foundation that will make us assured of getting a steady flow of traffic.
What Should You Focus on to Assess your Current Business Position?
To effectively carry out an assessment of your current business position, you need to look at the following areas.
- Your business
- Turnover and profit margins
- Business strengths
- Your customers
- Attitude towards your business
Now let us look at each area one by one.
Here you look at your business in its entirety. If you try to describe it now, which words best express exactly where you are. You can do this through brainstorming as you write down what comes to your mind.
Secondly, make a list of the services and products you offer. Find out what sells well and what doesn’t. Look for answers to either strengthen or improve in your weak areas.
Turnover and Profit Margins
Here you look critically at your turnover on a monthly and annual basis. What is it? Look also at your current end of year profit. How is it? Note that if you don’t keep records, it will be hard to get the facts in this aspect. This is why you have to keep records in order to assess your current business position in this area.
In this aspect, look at the main strengths your business has. But also your personal strengths are equally important. What are they? What are the main skills contained in this business?
In this aspect, assess the nature of your customers by knowing
- How many of them do you have
- Where they come from.
- The kind of profile they have.
- Who your best and worst customers are.
Attitude towards your Business
Here you find out how you feel about your business, what you find difficult and what you enjoy and like doing.
When you get back to evaluate your current business position, you gather specific facts, thoughts and feelings to work with. You now have the starting point of where you are now. The information you collect gives you a basis from which you start thinking about the future of your business and where you want to take it. It’s such a very important activity in your business life. What is your experience? Could you share it with us?