I was with a client the other day I it made me ask the question, do small businesses understand the mechanics or the business operating system of their business and how to control and leverage it? I would have thought so, but it does require some strategic thought.
Here are some of the questions I would be asking:
- How do we make money? What is our unique selling proposition.
- Who are our key customers? What do we know about them?
- What do our customers love about us, what do they want us to change?
- How much is the cost of sale for our service or product?
- How much does it cost us to create a lead?
- Who do we market to?
- How do we communicate and market our offering?
- What is our operating profit?
- What are our goals for growth?
- What are our goals for our company?
The mechanics of your small business system once you understand can be tweaked for optimum effectiveness. The right marketing strategy can be the difference between attracting the right customers and throwing money down the drain.
Having a well considered business strategy and reviewing it year on year means you have a plan and a measure to benchmark success and failure against.
So do you understand your business mechanics?