Why prevention is better than cure in business health
Monday, May 27, 2019 19:55
By MURORI KIUNGA
One of the most talked about subjects today is the need for regular medical checkups as a way of detecting some serious illnesses that are treatable only if detected early.
Despite the awareness campaigns for regular medical checkups by government agencies, doctors, the media, religious and other groups, apparently not many heed this advice.
It is partially due to this negligence and ignorance that diseases such as cancer are killing people after wiping out resources on costly medication yet an early intervention would have saved money and life.
Likewise, the health of a business as an entity should be a major concern. Experts agree that most businesses are unhealthy and owners don’t seem to know this until it is too late. It is, therefore, important for entrepreneurs and business managers to regularly check the health status of their enterprises.
Just like cancer, business failure does not come overnight. It starts as a crack or weakness in one area and spreads to other areas over the years. By the time it becomes visible, the crack will have become unrepairable.
It is always advisable as a business owner to monitor various figures and indicators that speak volumes about the health status of your business. For instance, it is good to keep records of your customers and their buying patterns. You need to know whether you are gaining or losing customers and why.
You need to track the level of customers’ satisfaction and also establish whether customers are buying from you by choice or because there is no better option. In case they are buying from you not because you are the best but because there is no other convenient option, then think of a way of building loyalty before a competitor with better appeal comes along.
Debt is another thing that every business should monitor closely throughout the life of an enterprise. Many healthy enterprises have slowly been trapped in a terminal debt web.
Normally, creditors never lend money to poor or struggling firms. Most times, a healthy firm that has been surviving and can survive without debt is lured into small debts to increase market share, develop more products or for owner’s indulgence. With time, debts become the mode of financing and before the owner knows how deep in debt the firm is, it is too late.
In most cases, it is not easy to know the health of your business by doing analysis on your own. You require an objective second eye.
Proper accounting and analysing business performance is a subject that gives many entrepreneurs a headache. But weakness in numbers and figures should not limit you in any way. You can hire the services of qualified auditors, business analysts and other experts to help you know how health your business is.
After all, if you want to know your personal health status you hire qualified doctors, and often seek a second opinion when in doubt.