Essential Business Coaching Strategy: Understanding Your Small Business Fundamentals

With the business economy under threat there's an important and timely reminder for small business owners around the world. Its business as usual.



Or should I say: Operating your business as it should be run.



From a business coaching perspective its just as important today to ensure your business is appropriately structured as it ever has been. And to this extent it means things should continue to operate as any successful small businesses already is.



From my 17 years experience as a business coach I can assure you that small business tends to trade within itself. And well within its potential.



So when the going gets tough it has a unique opportunity to sort out its self inflicted inefficiencies and thrive rather than just focus on survival.



If you are scratching your head wondering what this guy is on about, I would like to give you two important words to think about:



"Business model".



From my business coaching experience it's the very thing I have found that is most likely to determine your chances of success or failure.

And over the next few articles I want to share with you an understanding of why the business model is the point at which successful business coaching methodology begins and how it can provide you with so much opportunity and value.



That being said less experienced business coaches will dive into their toolbox of SWOT analysis, customer service manuals, vision statements and the like.



While they are important, and I will be commenting on those in future articles, the fact of the matter is that most business owners don't have a clear enough understanding of what it is they are supposed to be doing to make money.



The most critical questions of all are:

• WHAT products or services you sell



• WHO buys them



• WHY they buy them



• HOW you make a profit out of the transaction

If you have the answers to these questions you are already on your journey to a much a healthier business and lifestyle.



And, incidentally, you are also in the minority.



Most business owners haven't thought this through, and their results suffer as a result. Many may have started with a clear understanding but this has lost its clarity as they have changed the way they do business in response to various pressures.



That being said, having the answers is one thing. Being able to understand the answers and utilize them to create a truly outstanding business is quite another.



It's probably why, when business coaching, I often get a raised eyebrow when I ask those questions. The market expects business coachesto jump straight into the marketing side of things. But after we delve into the business model, as I will be with you over the next few business coaching articles, it becomes very clear indeed.



The answers will be a first step in identifying wasted marketing expenditure that can be reallocated into more effective channels.



The exercise allows you to eventually review your inventory systems, customer acquisition and retention programs, production systems, merchandising, HR policies, and a whole lot more as will the savings and opportunities. Irrespective of how big or small your business is.



The answers allow you to improve your cash flow allowing you to actually improve your lifestyle, or at least maintain it. You will be able to create new employment opportunities within your community.



Who would have thought that four such simple questions raised during abusiness coaching program could possibly yield so much information that every owner operated business I have seen could flourish, even in difficult times?



Go on. Have a go at answering these fundamental questions and see if you can start making some inroads into achieving your own business success. If you are serious about improving your business then you will need to be serious about approaching it in a whole new way. And that includes going back to the basics. And then coming back with a very different perspective.