Resources
How Are Your Foundations?
"It’s not the beauty of a building you should be looking at;
it’s the construction of the foundations that will stand the test of time."
-David Alan Coe
Will your business foundation stand the test of time?
During the course of the last pandemic, we saw many businesses collapse, often quite suddenly.
The ones with the poorest foundations close their doors very quickly because they were mostly “castles in the air”.
They didn’t have solid foundations.
If you’ve ever had a house built, then you know how boring foundations can be – unless, of course, you’re an engineer.
But foundations play an essential role in the continuing future of your home, or business.
So, what are some of the ingredients that should go into your foundations, so that they will hold up your business in the long term?
This list is not exhaustive, but it will get you started.
- What’s the purpose of your business, and don’t say to make a profit? Profit is the outcome of a well-founded business.
I’ve seen many businesses fall by the wayside, simply because they lost sight of their purpose.
- What will the business look like when it is fully built?
You wouldn’t build a house if you didn’t know what it would look like when it was finished.
- What’s your budget (both income and expenditure) for the next year, 3 years, and 5 years? Have you done the exercise? Do you keep checking your actual budget to ensure you’re on track?
- What’s your cash flow going to look like over the next 12 months? Many very profitable businesses have failed, simply because they ran out of cash.
- Who are your customers? Have you clearly defined them?
- How will you find your customers?
- What sort of staff will you need to hire in the future and when?
- How will you fund your business? What reserves will you have?
- What sort of market are you entering (or already involved with)? Is it still growing? Is it decaying? Is it crowded? What barriers are there to entry?
- What will your role be (or what should it be)?
- What skills do you need? Are you lacking any of those skills? If so, what will you be able to do about it?
These represent just a few of the ingredients that will go towards giving you a strong foundation, which will weather the storms your business will unquestionably encounter.
If you would like to have a chat about your business and your foundations, then click this link here or email me on john@yourbusinessfreedom.com.au
I am happy to have a 45-minute chat with you, free of charge and obligation.