Key Issues in Running Your Business

1. Your Permanent Priorities

You must keep constant track of five crucial areas if your business is to succeed.

1.1 Concentrate on winning and keeping customers.

• Continually improve your understanding of customers and the competitive environment to refine your marketing plans and take advantage of new opportunities. See Research for your marketing, Planning your marketing and other marketing titles.
• Promote your business and your products.See Advertising strategy, Direct mail, Effective PR, Exhibitions, and other titles covering marketing methods.

1.2 Monitor your cashflow closely.

• Cashflow is the balance of all money flowing in and out of your business, with the main inflow usually coming from sales. The more warning there is of cashflow peaks and troughs, the more time you have to deal with them.
• You must know when to focus completely on sales and getting your invoices paid. See Managing your cashflow, Budgeting, and related titles.
• Planning ahead will make it easier to arrange any additional funding you may need. See Overdrafts and bank loans, Factoring and invoice discounting, and associated briefings.

1.3 Make sure your employees are performing effectively and are overcoming any problems.

• Start by recruiting the right people. See Recruitment, Graduate recruitment, and Interviewing.
• Lead and motivate your employees. See Motivating employees, and related titles.
• Monitor your team's performance by holding regular reviews. Discuss and resolve any problems and frustrations - otherwise employees will find other jobs. See Performance appraisals.

1.4 Develop your selling skills.

• Make sure that you, and all employees who interact with customers, have the right training, attitude and approach.

1.5 Control your costs carefully.

See Cost control, Purchasing, and Negotiating a purchase.

• This is often the easiest way to improve your short-term profitability.