Ever have a business problem, but couldn’t put your finger on the source so you could fix it? It’s easy to see the symptoms of a problem, but you’re too darned busy running your business to stop and find the source, or root cause issue.
Business problems often source from one or more of these three root causes:
1. Not Managing Expenses
Effective management of day-to-day activities and long-term objectives requires expense planning and tracking. That means budgeting, forecasting, and measuring performance against the budget. Other good expense management practices include planning purchases, negotiating prices, and verifying purchases are received before paying invoices.
2. Doing it Yourself
Successful business owners know they can’t do everything themselves. And most can’t afford all the employees needed to get the job done, especially tasks requiring specialized skills. Outsourcing is often the answer. The best source of qualified and trusted vendors is your network. Getting a referral from a satisfied customer that you know speaks volumes.
3. Outdated Processes
Your business processes were set up a long time ago, and haven’t changed since. Back in those days, you had limited time and money to invest in your back office and you really weren’t sure what you needed. Now you have the knowledge and resources to streamline and automate processes to increase efficiency and eliminate waste.
It’s hard to stop and think through the source of your business problem so you can fit it. Looking at these three common problem sources could get you started on the right path to a solution.