What is “Business Wellness”?
What comes to mind when you hear the term? Do an internet search and you will invariably get listings for business wellness programs as they relate to employee health.
Consider the term from a different perspective. Are you taking preventative steps to keep your business healthy? Are you monitoring a dashboard of KPI’s to ensure the business is running smoothly (or at least as expected)? If/when you discover something isn’t quite right, do you have an action plan to take investigative/remedial steps?
We take vitamins, exercise, eat right and get plenty of sleep to ensure our personal wellness. We go to the doctor if we aren’t feeling right or need help curing lingering ailments. Doesn’t a similar approach to the health and well-being of your business make just as much sense?
Ever see a company that keeps selling more and more – but makes less and less? The more they sell, the faster they blow through their line of credit. They tell themselves the ever increasing credit line is needed to fuel growth. How can this be? If the operation was running profitably, it should be producing more cash so that draws on the credit line would be less – not more. There are other variables, but you get the picture. There are most likely problems in the underlying operation that get masked by the ability to borrow more money. At some point, borrowing more money is not an option – and the problem(s) are potentially much worse than they would have been if caught early.
Here are some of the questions that come to mind when I think of business wellness:
Have collections on your receivables slowed? How many inventory turns do you have versus prior years or industry standards? How strong is your IT security? If the organization was shut down by a virus, how soon would you be able to recover? What is your backup plan? Are your costing methods accurate? Are your key processes documented?
This is just a few. The list could almost be endless. The point is you should really have some type of system in place to detect early trouble. In the event that you see something is awry, ignoring it may work – but 99 out of 100 times it doesn’t. In almost all cases, the cure gets more expensive the longer the problem is allowed to fester. Like the old commercial with the plumber used to say “you can pay me now or pay me later”.