Dear Entrepreneur, Are You Having a Business or an Expensive Hobby?

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Many people think that they have a prosperous business when in the real sense they only have an expensive hobby. If you want to know whether you have a business or an expensive hobby, there are questions that you need to ask yourself. According to the Flipboard, 25 key questions will determine whether you are running a business or sustaining a liability.

Do you have a three-year plan for your business?

  • Do you have a clear financial goal for this year which is written down?
  • Have you shared your financial goals with your teams/partners?
  • Do you know who your ideal clients are, is this written down?
  • Do you know what success looks like for your business?
  • Do you have the roles and responsibilities for you and your team clearly defined?
  • Do you spend more than 50% of your time on the business?
  • Do you delegate your administration work?
  • Do you review how the business is doing against the plan with your team each week/month?
  • Do you have clear targets for each member of your team?
  • Do you have a clear list of products and services which are easy to understand?
  • Do you have a clear and consistent pricing strategy for new, repeat and referred customers?
  • Do you know how many products/services you need to sell each month/week/day to meet your financial targets?
  • Do you have a simple value proposition which you can explain to your customers in one sentence?
  • Do you know which sales channels your ideal clients use?
  • Do you know the cost of sale for each product/service?
  • Do you know the gross margin per product/service?
  • Do you know the net profit per product/service?
  • Do you know where you are against your targets right now?
  • Do you track the progress of your business against the target monthly/weekly?

If you answered 80 percent of the questions, you are running a business and if not, my friend, you are running an expensive hobby.

 

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Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.You can reach him on: (020) 528 0222 or Email: [email protected]