Whether you are an established small business ready to take critical steps to substantially increase your profit or you have the idea to start a business, it is essential to take the time to do a frank assessment of your business model. So often as entrepreneurs, we find it easy to forget to pause to see how we’re growing, what’s working, and what isn’t. By doing so, we miss a key opportunity to understand how our business can grow.
“Of every 10 entrepreneurs who venture into starting their own business, an astounding 80% fail in the first 18 months.”
A business inventory will better prepare you to deal with many of the pitfalls that lead to small business failure.
Here are some of the questions that a carefully crafted Business Inventory Worksheet must guide you in answering:
– What is your current 3-month plan to enhance your profit?
– What would you like to focus on for the next 3 months to enhance your profit?
– What about enhancing your profit do you find to be the most overwhelming or confusing?
– How would your life be different if you achieved the goals you listed above?
Best Practices For Effectively Completing A Personal Business Inventory
A business inventory is only as successful as the efficacy with which it’s completed. Here are 5 key best practices that allow a business assessment to be an effective tool:
– Revisit and re-do your business inventory regularly (at least once a month)
– Be truthful in your inventory
– Pay as much attention to the things that are working as you do to the things that aren’t
– Don’t allow yourself to get overwhelmed by the things you feel are not working
Develop a positive mindset. Often times, completing business inventory can feel daunting and dis-empowering, but you need to fully realize that a business assessment is the crucial foundation you need to help you overcome what’s holding your business model back
Once you’ve completed your Business Inventory, don’t set it aside – the power of your inventory is in the process of revisiting and leveraging it regularly. Be sure to take a moment to reflect on your answers often, and be detailed in your reflection. Following these suggestions will allow this business inventory to support you in avoiding falling into the 80% of start-ups that fail.