It's time to do a health check on your business.
Welcome to the new normal
We’re emerging from our bunkers and learning to live our ‘new normal’ after the unusual and highly trying business and personal conditions of the COVID19 pandemic. As a result, business owners are looking for ways to re-engage with clients and customers whose priorities and spending habits have fundamentally shifted.
On top of the seismic shifts in spending habits, the current political and economic climate is the harshest it’s been for at least 20 years. Interest rate hikes have squeezed personal and business finances at the worst possible moment for many already on thin ice.
It's time for a reset.
Remember, you're a person with a business, not a business owner with a personal life!
You can't change what you don't know.
It’s an old adage, but the truth really does set you free. A good diagnostic will tell you where you’ve been and where you are and give you the insight you need to get you where you want to go.
What worked? What didn't?
Diagnostics are only as good as what they monitor and the information they measure and compare, and a good diagnostic will help you compare apples with apples. Let’s face it; it hasn’t been business as usual since 2020. We’re all painfully aware of the seismic shift, and there’s no point comparing apples with oranges. The metrics from the last two years are of limited value for business owners trying to reignite their customer base and reinvigorate their companies.
You need a set of metrics that compares relevant data across comparable timeframes. Then, once you have the data, you need to ask questions that will help reset your foundations.
Once you have the data and can see where things have changed, you can start asking questions about your customers and clients. For example, what’s changed in their spending habits? What are their patterns now as compared to 2019?
Avoid the 'hamster effect'.
Why use a diagnostic?
Think about what happens when you visit the doctor. If they suspect a broken bone, they won’t give you a Band-Aid; they’ll send you for an x-ray. When we present with pain, doctors order a diagnostic process to help narrow the focus and eliminate possibilities. Once they’ve diagnosed the issue, the solution often presents itself.
The same is true in business. However, often when we experience pain, we focus on Band-Aid solutions rather than discovering the underlying cause.
Five elements that make a good diagnostic
If you’re considering using a diagnostic tool or instrument, make sure they contain these five elements.
- They must be focused. A diagnostic must be specific so you can see the pathway to fix the problem.
- They need to be straightforward. If a diagnostic is challenging to complete, you'll be less likely to get the most out of it.
- They give you the information you need in a way you can understand. The purpose of a diagnostic is to communicate information so that anyone can understand it and move towards a solution.
- They provide relevant information. Superfluous information is annoying and unnecessary. Crisp, clear, and concise top-level information with a pathway to greater detail if needed is best for any diagnostic.
- They clearly show the issues to be addressed. An excellent diagnostic leaves the reader without doubt about where the problems lie. The more focused the diagnostic, the easier it is for a person to get real value from the process.
Just do it!
Now is the perfect moment to reset your personal and business financial foundations. If you understand where you’ve been and where you are, you can make changes that will launch you into your best future.
"What gets measured gets improved."
