Opinion

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Business Is Personal

A Small Business Scorecard, Part Four

A self-assessment tool for small business owners / managers

This week, the last piece in the four part series, “A Small Business Scorecard”. As a reminder, I’m calling this a scorecard, but the goal is not to arrive at a number and think “We got a 14, so we’re doing fine as is.” It’s more of a self-assessment & introspection tool. If a seemingly-negative item on the list doesn’t pertain to you, cross it off. Look at the items you circled / checked as “yep, this is us” as a milestone on the way to a stronger company. Some may need recurring attention. We close out the series with finance and systems.

Finance

  • We know where the funds for our next payroll will come from.
  • We’re always on top of the required state and Federal reports related to employees and such.
  • Sometimes we have to pay our invoices late, but it’s not an every month thing.
  • We get paid late by our customers and it creates issues for us.
  • We don’t have receivables.
  • Our payables are always behind.
  • We never have any issues with state or Federal tax returns or deposits.
  • We’re always on top of tax returns.
  • If sales could deliver dependable pipeline numbers for the next quarter, our finance problems would disappear.
  • The owner / management hates accounting.
  • We’re always up to date on tax deposits.
  • We’re not very good at managing the company’s finances.
  • We tend to be late on tax returns. Sometimes we have to pay a penalty.
  • Managing our finances is one of our superpowers. We suspect we’re better at this than many other companies.
  • We tend to be late on tax deposits. Sometimes we are charged penalties / interest.
  • We do all our own bookkeeping and accounting / tax work.
  • Debt is an important ingredient in our ability to grow.
  • We do our own bookkeeping, but we have a professional handle the taxes and related paperwork.
  • We outsource bookkeeping.
  • We’re focused on eliminating debt for the long term, even though we know it may slow us down from time to time.
  • We have a professional handle taxes and related paperwork.
  • Our “numbers” drive strategic decisions.

Systems

  • We understand that “systems” might include automation, but also may include manual systems – such as checklists, documented work processes, job descriptions, manufacturing reviews, and similar items.
  • New employees learn our systems as they learn their job.
  • We’re gradually systemizing parts of our business.
  • None of our systems are “perfect”, but our imperfect systems save time, keep us on track, and help us avoid missed steps.
  • There’s one person who knows it all on our systems, but that’s it.
  • Our systems are a strategic advantage. They make our work safer and more consistent. They help us produce a more consistent outcome for our customers.
  • We routinely review our systems with feedback from the people who use them. Reviews drive upcoming system improvements.
  • The nature of our business requires that we invent most or all systems ourselves.
  • We don’t have anything we’d call “automation” but we’re definitely a systemized business.
  • We have several team members working together to know, improve, and manage our systems.
  • Over time, we train new employees on all the company’s systems so that they help in any area if someone is out.
  • We understand that automation / systems can be leveraged in any part of our business, from management to finance to manufacturing, sales, and/or marketing.
  • We’re using systems and ideas that others have refined over time.
  • Systems (and particularly automation) are something we need in order to keep up with competitors. If we didn’t have to, we’d use as few as possible.
  • Our systems have been in place for years. We rarely change them.
  • Our systems are very close to ideal. We’ve worked hard to get there.
  • Our systems are difficult to change.
  • Our systems are a mix of commonly-known systems from experts and systems specific to our industry and/or business.
  • We train new employees on all the systems in their area.
  • Adding new systems to our work is easy.
  • It’s difficult getting new systems into our workflow.
  • When we hire people. we look for experience in systemized businesses and experience with systems like ours.
  • If we find job candidates with experience with systems unlike ours, we consider this useful as we might gain an edge from that differing background.

Want to learn more about Mark or ask him to write about a strategic, operations or marketing problem? See Mark’s site, contact him on LinkedIn or Twitter, or email him at mriffey@flatheadbeacon.com.