Many of these items alone might not indicate a need, but in combination with others, they may indicate serious managerial deficiencies. A common expression of the ordinary business person is "there is nothing wrong with my business that a good healthy sales increase would not eliminate". Nothing could be further from the truth, Such an increase, in many instances, might simply hasten the end of that business. The advantages to be derived from a company actively operating with pre-determined profits and control of expense would reduce and/or eliminate managerial deficiencies within your organization. These are just some of the points that a successful business person must assess.
Lack of profits.
No financial reporting.
No chart of accounts or poorly constructed chart of accounts.
Poor format in chart of accounts.
No planning or ineffective planning.
No budgets
Variable monthly sales level.
Inability to place responsibility.
No performance standards.
Improper delegation of authority.
Improper assignment of responsibilities.
No company goals or objectives.
Rapid growth.
Negative growth.
Absentee management.
Rapidly escalating costs with no sales increase.
Poor internal control.
Ineffective or complacent bookkeeping or accounting personnel.
Lack of management variance reports.
No product line income statement.
Lack of poor information on product gross profits.
Be honest with yourself, and if you can't emphatically answer positively to 18 out of the 21 deficiency points on this 21 point managerial deficiencies checklist...it's time to re-evaluate and possibly get some outside help. This checklist and more are available from coaching / consultants See Guruofhardknox.com. If you pay close attention to the deficiencies checklist it all revolves around quantifying measurements and metrics.
Mark, You are welcome. SMB owners have a tendency to do exactly what I quoted in the article. In order to succeed a person must understand and agree that NO ONE person can do everything.
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