Business Cost of Naval Gazing

Knowing your organisation inside and out is essential. How your operation runs; staff productivity; the cost of providing the service you offer – all elements that successful business operators know like the back of their hand.

But when having internal knowledge becomes having an internal focus, only one thing can happen: customers get less attention and prospects are lost.

There are a myriad of reasons why a business can get caught in the trap of naval gazing for too long, and often performance, operational costs and cash flow are the leading culprits. Here’s a common scenario:

Cash flow is tight, demanding daily management of payments in and payments out and review of operational performance and costs. Getting into the detail of customer payments; whether staff are performing at an optimum level and opportunities to reduce costs is no small task. It takes time and considerable attention to detail.

But while it obviously has to be done right – and can be the milestone moment that determines ongoing success – allowing this process to take over for an extended period of time is perhaps the biggest risk to your business.

It needs a game plan – a strategic program to cover all areas for consideration with deadlines for completing the review and implementing change. It also demands that time be put aside for keeping abreast of your market; what your competitors are doing; customer experience and the services your prospects are seeking.

Whether you are undergoing a review of your business or it’s business as usual, here’s a handy question to ask yourself: Does my company spend more time working to understand our products or working to understand the issues facing our best prospects?

If you identify that naval gazing may be taking precedence over customer and prospect needs, it might be time for a shift in focus.

Fifo Capital works with many small businesses seeking ways to streamline their customer payments, taking the immediate financial stress off the business to allow for proactive planning rather than reactive management. Contact us for a complimentary review of your needs; the first step in shifting the focus from internal to external.

This article was kindly supplied by Fifo Capital New Zealand – specialists in sme cashflow solutions. To learn more, visit their website here.