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5 Tips on Monitoring Small-Business Progress

5 Tips on Monitoring Small-Business Progress
(Marek Uliasz/Dreamstime)

By    |   Wednesday, 01 May 2019 06:53 AM

Evaluating current business progress and comparing it with expected or set goals are among vital business-management tasks most small-business owners tend to overlook, especially when the business is booming.

We are most vulnerable in our "happy" state, as we care less about little issues that are essentially huge in the long run.

Your businesses could actually be time-bombs waiting to explode as a result of inadequate monitoring of daily operations.

Here are five tips on monitoring small-business progress to achieve your goals:

Monitor Your Business Financial Position

Business success is dependent on sound financial and management systems. Inability to discover this truth has led to most business failures.

According to Fundera, the four most-common reasons why small businesses fail are:

  1. a lack of sufficient capital;
  2. poor management;
  3. inadequate business planning;
  4. and over-blowing their marketing budgets.

There are many reasons why small businesses fail, but a few key causes keep coming to the top: capital access, cash flow, lack of demand, and poor management.

Don’t fix your eyes mainly on the sales ledger, also monitor your cash flow, budget, working capital and other factors. For instance, if your expenses exceed your cash, then you have a cash-flow problem. How can you discover such problem and more if there’s inadequate check on your business financial position?

Monitor Waste in Your Business

Businesses, regardless of size, are always brainstorming about the best ways to minimize waste. In a study conducted by Fundera in which 30 small-business owners were asked their best small-business management tip, AJ Saleem, director of Suprex Tutors Houston, said: “My number one tip for small-business management is to be more stringent on costs. A penny saved is more often more than a penny earned, so it is important to save on costs everywhere you can. Take advantage of tax breaks, and if possible, outsource non-core business aspects.”

Business-enhancing tools like social-media platforms, Google analytics, apps, automation software, Dropbox and others can help you save money. Embracing new technologies and ideas for efficient work flow, instituting GPS tracking software for effective monitoring of business resources, outsourcing and automating business processes are some of the ways to reduce costs and minimize waste in business.

Monitor Your Customers’ Behavior

Satisfying your customers’ need is actually the reason you’re in business. Having the slightest idea of your customers’ thoughts is valuable data since it can be used to enhance service quality and maintain high customer satisfaction. Small-business owners can monitor customers’ behavior by receiving and treating customer complaints promptly.

Most importantly, get regular information from customers about their overall shopping experience through survey cards, brief email questionnaires, social media, business websites and apps. This will give insight about what your customers think about your business and how you can increase satisfaction.

Monitor Your Team’s Attitude and Input

Employees have different reasons for joining organizations. It may range from wages and salaries, working conditions, fringe benefits, additional responsibilities, autonomy and opportunities for training and advancement. These factors influence employees’ attitude and input in daily business operations. Small-business owners should be cognizant of savvy personnel-management practices to ascertain the team’s attitude and keep team members motivated and satisfied. Performance management should be instituted to daily monitor employees’ input toward set tasks and goals.

Have an Eye on the Future

Small business owners should have their eyes on the future in order evolve with current trends and survive the unpredictable and turbulent nature of today’s business environment. This can be achieved by carrying out market research, as the Balance Small Business reported, to have up-to-date information on current market trends and predict future business outcomes.

Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

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We are most vulnerable in our "happy" state, as we care less about little issues that are essentially huge in the long run.
tips, small, business, progress
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2019-53-01
Wednesday, 01 May 2019 06:53 AM
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