Is your business on the right track?

Whether your business is a start-up finding its feet or an established blue-chip company amid a calm or turbulent economic backdrop, the principles needed to run a successful company remain the same.

Here are a few key tips to ensure business owners are on the right track:

Planning – A business plan guides the overall direction of the company and keeps you focused on what drives profit. This should encompass actual vs budget forecasting, product releases and marketing campaigns. Ensure you review and update your plan on a periodic basis.

Employee retention – A successful company goes the extra mile to retain its top talent. Departures can seriously hinder growth if you are always spending time on recruiting rather than growing your business. You should review staff salaries and benefits regularly. Also, look at how you can help staff members to develop their skillsets – having the right management personnel who can motivate others is key to this.

Financing – It is important to have access to funds that meet the daily running costs of your business, but also to have capital available for investment to increase market share. If you are a start-up, this could come from investors or lenders until there is strong enough cash flow to self-finance.

Pick a target market – It is important to have an audience that is going to give your business long-term success. This market should be growing, and one that the business owner and his management team are passionate about and in which they have in-depth knowledge. Most importantly, the product or service being provided by the business should be solving a problem – this will be your launchpad for growth.

Gain market share – The most effective way of doing this is by building a product or service offering value for money. Frequent development of improved versions helps to ensure your product stays in the limelight.

Embrace change – Businesses need to be constantly monitoring what their customers are saying, and what their competitors are doing, to ensure they stay relevant, and at the front of their industry curve.

Businesses, particularly smaller owner-managed ones, should not shy away from seeking independent business advice nor seeking counsel from other, noncompeting, business leaders. Accepting the advantages of doing so can help to keep you and your business on the right track.