How to Become a World Class Business
August 6th, 2009 |
No more than 5% of all businesses in the world have achieved World Class Status. Could You Become a World Class Business? Most Certainly… To become a world Class Business there has to be measurement, otherwise how would you know? The way to measure your business is by completing a business audit.
A business audit is a measurement in time of where your business is, in terms of its performance in the following areas:
1. Leadership
2. Planning
3. Marketing Strategy
4. Systems and Processes
5. Winning Teams
6. Marketing communication
7. Finance
8. Sales
Understanding where you are and where you want to be is fundamental to your business growth. It is also paramount to understand your business risks and how to eliminate them. Your business audit will bring any risks to the surface and you can then take action to remove them.
The business audit will deliver a report that can then be used to prepare an action plan, this can be prioritized so you deal with the most important items first.
The business audit will also give you a measurement of where your business is term of being World Class. Imagine being in the top 5% of all businesses in the world, what value would that put on your business? You can easily achieve this by working through the FREEDOM programme. We will take you through each process, one step at a time and before you know it your revised audit will be telling you how close to Business Class you are.
An example: Let’s look at Systems.
On a continuum of 0 to 10, score yourself on your existing system and process development.
Having systems and process, but not having them written down scores - 0
Having systems and processes like McDonalds scores - 10
How to Reduce Your Business Risk
There are a number of reasons why businesses fail; the main one is Leadership and Management…..
Business Failure statistics
1. Bad debt - 12%
2. Market failure - 24%
3. Lack of working capital - 25%
4. Leadership & Management failure - 39%
Only 12% is really external and even this risk can be reduced through good credit control, the remaining 88% is essentially leadership and management. Putting systems and processes in place will reduce all your major risks, even market failure if you can adapt and change in time. To reduce your business risk and develop your business into a World Class Business, being able to measure where you are now and what needs to be done is a good start. This is why carrying out a Business Audit is important to your business.
Having a score of over 80% in the categories below will put you into Business Class. This will not only reduce all your business risks, but will put real value on your business, if you ever wish to sell or reduce your input.
1. Leadership
2. Planning
3. Marketing Strategy
4. Systems and Processes
5. Winning Teams
6. Marketing communication
7. Finance
8. Sales
Becoming a world class business is easier than you may think; it’s just a case of working through each section and developing your systems and process. What do you think your score will be in each of these categories? To find out lets go through the exercise.
Freedom Business Coaching is a fantastic company that specializes in business coaching and helping to manage your business’s success. For more information, visit the Freedom website. The experts in business time management - http://www.freedombusinesscoaching.com
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