There is a simple guide to understand how professional you are at running your business.
You get 1 point for each of these that you can honestly say yes to.
- Do you spend dedicated time every single week working "on" the business? (minimum 3 hours)
- Do you have someone else answering the company phone?
- Does someone else do your bookkeeping?
- Do you regularly think strategically when you make decisions?
- Do you have a business plan that is longer than one year?
- Do you have no functional role in the day to day business?
- Do you know exactly what you want from the business - a number?
- Are you comfortable with taking calculated risks?
- Can the business operate completely in your absence?
- Do you track your financial performance weekly?
- Do you pay yourself properly every month?
- Do you know your break even position?
- Do you have at least 3 months operating expenses in a separate account?
- Are your HMRC bills under control?
- Do you plan regular breaks from the business and take them?
If you score more than 12 / 15 then you are doing great - but could improve.
If you are scoring less, there are some things that you need to be focusing on.
Only one person can make the change however - YOU.
At least you know where to focus.
Have a great weekend!
James