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Change is inevitable. It can eas­i­ly take any­one out of the com­fort zone and into the fire. How­ev­er, it doesn’t have to be that way. Change can be cal­cu­lat­ed and it can cer­tain­ly have a pos­i­tive impact on a busi­ness. Every busi­ness can improve if it takes the right steps to make a pos­i­tive change.

 

Step 1: Take a step back

Most busi­ness own­ers are stuck pro­gress­ing through the nor­mal every­day rou­tine. This usu­al­ly includes man­ag­ing oper­a­tions to ensure that all of the work is being com­plet­ed on time. How­ev­er, is that where all the focus should be? This is a clas­sic case of a busi­ness own­er work­ing “in” the busi­ness and not “on” the busi­ness. It is very dif­fi­cult, but as a busi­ness own­er, you need to take time to step away from the noise of the busi­ness and take a look at the big­ger pic­ture. You can eas­i­ly try to argue that you know exact­ly what is hap­pen­ing in your busi­ness because you are work­ing in it every day, but you can be sur­prised about what you over­look when you do not look at the busi­ness as a whole. Set aside a time, at least once a month, to do this.

Step 2: Ana­lyze

The most basic tool that a busi­ness own­er can use to ana­lyze the finan­cial state of the busi­ness, is the finan­cial state­ments. When read­ing through the finan­cial state­ments, each line should make nat­ur­al sense as to what has been hap­pen­ing with the busi­ness. If some­thing seems odd, that is an indi­ca­tion that you may want to dig deep­er into what hap­pened. It may be that what­ev­er is caus­ing the num­bers to look odd to you is per­fect­ly rea­son­able once you dis­cov­er the real cause. You just need to get into the habit of look­ing. You can also sup­ple­ment your analy­sis of the finan­cial state­ments with oth­er tools such as dash­boards, fore­casts, bud­get com­par­isons and much more. This takes prac­tice. You will not become a mas­ter of this analy­sis overnight, but you will become bet­ter through­out the process.

Step 3: Adjust

The best part about using var­i­ous finan­cial tools in your analy­sis is that it makes deci­sion mak­ing eas­i­er. It pro­vides you with proof and rea­son­ing that some­thing needs to be adjust­ed in your busi­ness. Usu­al­ly, busi­ness own­ers do not have the sup­port to make the deci­sion so it nev­er gets made. How­ev­er, now you can feel con­fi­dent because you have edu­cat­ed your­self on the sit­u­a­tion. The only thing left is to decide what deci­sion to make. There could be mul­ti­ple options to choose from. The best way to decide is to look at the pros and cons of each option. This will help you deter­mine what the choice actu­al­ly means to and how it affects your busi­ness.

 

This is an ongo­ing process. Busi­ness­es and their sur­round­ings are ever chang­ing. The process will start to come more nat­ur­al to you as you con­tin­ue to use it. Once you break it down, change real­ly isn’t all that scary, now is it?