Do you often ask “how healthy is my business?” This one is somewhat difficult to answer because the term “healthy” does not have the same meaning for all businesses. To explain what makes the difference, these five important questions will give you the answers that every businessman needs to know.
1. When can you say that your business is healthy and thriving?
Your business is healthy when you are achieving your ultimate goals within your set timeframe. Most businesses aim for a particular revenue or growth rate. It really depends on your target.
You have to know what is really important though as some people tend to entertain distractions and forget their end goals. For instance, some online entrepreneurs get satisfaction from high search engine ranking and large traffic volume, totally forgetting that these factors do not guarantee successful conversion of leads to customers, and hits to sales.
2. What are the metrics that can efficiently measure success or failure in different aspects?
The most reliable metric is the business’ financial report. Is it really earning or losing money? If it is losing money, is the investment worth the risk? Remember that losing money today does not necessarily mean having an “unhealthy” business. Large corporations invest millions to billions of money to have larger gains in the future. As they say, the greater the risk, the greater the return is.
3. What aspects of the business better decide for its success?
All aspects of the business, from operations to marketing, are important. However, some tend to rely more on one or several aspects.
For instance, a website that relies on affiliate programs for revenue needs invests more on marketing. On the other hand, a consignor needs to focus more on product development and manufacturing.
4. Is an unhealthy business guaranteed to “die” or can it still be saved?
The answer varies depending on the type of business you have. Is it a physical business with an actual office, manufacturing facility, store and warehouse or a cloud-based business that completely operates online? Or is it combination of both?
Rebranding, reorganization and relaunching marketing campaigns usually suffice in saving an unhealthy physical business from “dying.” The process is slow, but with strategic planning and in-depth market research, there is a greater chance of attaining positive results.
This issue becomes more complicated when it involves a website that has to be marketed separately from what the company offers. Fixing the damage caused by the penalties from Google after using unethical digital marketing strategies may or may be possible.
Sometimes, regaining lost rank and PageRank rating takes over a year. Sometimes, the cost of damage control is greater than starting all over again. In this case, a dying business may no longer be worth saving even if its website belongs to a credible private blog network (PBN).
5. Is consistency always commensurate to success?
Every business hits a plateau at some point. This is the time when market and product expansion stops partly or entirely. You can consider it as healthy if you can still meet your targets. However, it could be a big problem if you are aiming for expansion from the beginning.
If you think about it, mom-and-pop businesses only aim for consistency to last long, and there seems to be no problem about it.