Having a successful business is about more than just opening your doors and starting to rack up sales. You need to have a solid idea of the potential upside for your business; in other words you have to be able to determine the size of the prize. Unfortunately, this is where most business owners fall short, but having a business coach to guide you can help to keep you and your company on track.
What exactly do we mean by the size of the prize? It’s simple really, it just means your company’s overall potential for success within your industry. Every company is out to make a profit, and that is obviously one measure of success, but there is more to it than that. Where does your company stack up in terms of industry standards? Are you keeping abreast of the competition and making a name for yourself?
The answers to those questions can make all the difference for your business. Determining the size of the prize, then, begins with knowing what the industry benchmarks are so that you can be aware of how your company stands up to them. If you are not reaching those benchmarks you’ll be in danger of being eclipsed by the competition so it’s in your best interest to be aware of them and do what you can to keep meeting them.
Once you figure out where you stand in your industry, you can then assess whatever gaps may exist between you and the industry standards and take steps to close those gaps. The more precise information you have the more targeted your approach can be and the better you will position your business to make the strides it needs to succeed.
It sounds simple but the fact is that employees are more motivated to work harder and do better when they have a specific goal in front of them. If you can tell your employees that your current labor efficiency is almost 20% below the industry standard and that it has to improve in order for the company to make a profit and everyone to reap the benefits, they’ll be more likely to change their work habits to achieve this goal.
Having a target to work toward helps keep employees focused. This is why knowing the size of the prize for your business is so important. You can’t expect to reach your destination if you don’t know where you’re going. Once you’ve got that end goal in mind, you can formulate a cohesive business plan that benefits everyone.
So how do you go about determining the size of the prize? Check the numbers for your industry, find out what the standards are and you’ll know what the possibilities are for your business. Then you can determine exactly where your company stands and begin setting goals and working toward achieving them.
If you feel like you are in over your head with all of this business jargon, then that’s what hiring a business coach is all about. Having a SME doesn’t mean you have to go it alone. I can sit down with you, go through those figures and determine exactly what your company’s objectives should be and how you can get all of your employees working together to meet them.
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