The 5 Distinctions of a Healthy Business

Q: I’m having some success with my new business, but how do I make sure it grows sustainably?

A: Benjamin Franklin’s great advice still applies today: “An ounce of prevention is worth a pound of cure.” Let’s look at five distinctions of a healthy business.

Related: 4 Smart Tips for Growing Your Business

1. Trajectory

Is your business declining, staying neutral, or growing? If your business is not growing, you’ll obviously need to make some immediate changes.

2. Culture

By leveraging the strength of your people’s teamwork, you have the benefit of collective intelligence and expertise; you expand your leadership bench; you support cross-training, where people learn from each other; you promote team engagement and enjoyment; you improve execution and get better results.

3. Clarity

When you and your team share and understand the vision, it pulls you out of your circumstances and toward better results.

4. Cash flow

Cash flow can be hard money, money invested, or money generated. You have to have positive cash flow and reserves. You need to make sure there’s enough cash incoming that you won’t be pressured into making bad decisions.

5. Risk mitigation

This is a principle I’ve been driving heavily on recently with my clients. You need to be seriously thinking about what things could make you have a hiccup in your business. You will have a healthier business if you’re not on the edge in those areas.

Related: 5 Tips for Running a Successful Business

 

This article originally appeared in the Winter 2018 issue of SUCCESS magazine.

The post The 5 Distinctions of a Healthy Business appeared first on SUCCESS.



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