Assessing the Parts & Services your Small Business Needs

Business Assessments: The Broader Picture
Every small business needs a road map to financial success. That journey starts with a company assessment of parts and services that make your business’ engine run smoothly.

Step back and look at the broad business picture. An assessment achieves that goal by providing clarity, identifying business strengths, saving time strategically, allowing planning and laying a foundation for business decisions.

Business assessment tools provide an objective evaluation of your company. Setting a goal of $5,000 a month in revenue is optimistic; however, realistically where does your business currently stand? Free assessments are beneficial when truthful and objective answers to questions determine your future business success. As your business develops, take detailed notes on its progress. Highlight the achievements, while learning from profit and customer losses.

Identify business opportunities that are attainable to make short and long-range goals successful. Create a timeline to attain the goal and add it to a growing list of accomplishments. And always remember that growing a business is a learning experience. To learn more read the Huffington Post article “Business Assessment: Your Guide to Ongoing Improvement & Smart Growth for You Small Business.”

In today’s economy, small business needs are independently separate from major corporations that rely on expensive technology or research firms to keep themselves afloat. To maintain a consistent cash flow strategically pricing services is imperative. The standard in service pricing is to determine the cost to provide a service and increase it with the desired profit. Direct costs, indirect costs and fixed costs help determine your strategic pricing that will catapult your company into multi-million dollar company.

Service pricing takes research and creative skills. Scout the competitors’ prices through websites, general phone calls or individuals who have used their services. This information will help convince customers that you are offering the best service and prices. Another step in strategic pricing is to present business services that are so valuable, customers will remain loyal to your company.

The cost for providing a service is determined with materials, labor and overhead costs as well as price mark ups to ensure your company is profitable. Decisions on whether to charge by an hourly rate, flat fee or variable pricing are flexible as you continuously monitor company profits. As cash flow is monitored monthly test your market for new services and prices that will allure new customers and maintain those who are loyal. Learn more about service pricing by reading the INC magazine article “How To Price Business Services.”

Small business owners can take center stage with solid operational profits that mirror major corporations. It all starts with taking the first confident step in a journey to properly assessing your business.