a c abc analysis worksheet - nextlevelup.com.au

Assessment of Business Condition ABC Analysis

©Next Level Up and AEL December 2014 of 20

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Assessment of Business Condition

ABC Analysis Worksheet This worksheet consists of a list of statements about the Top Ten Conditions in your business, and how the business and you perform in each category. For each statement, we ask you to indicate how well that statement describes the status of your business, as follows:

STATUS WHAT IT MEANS

YES The statement describes the condition in my business

SOME The statement is somewhat true for my business, meaning that Some aspects of the statement are true and some are not, or We’re aware of the condition, but we don’t manage it very well.

NO The statement is not true for my business.

DK I don’t know, meaning that I don’t know if the statement is true or not, or I don’t know enough about the subject to have an opinion.

COMMENTS For each category, under “Comments,” please explain each response as it applies to your specific business.

Please respond to all statements. Leave no blanks. If uncertain, give the answer that comes closest to describing how well the statement describes your business.

For your evaluation to have any value, you have to look at your business as if you were an impartial outsider, and you must be completely honest about it. It’s easy to answer all statements in a positive way, and therefore fool yourself about your business, but that does you no good. It’s better to be overly critical because that will help you identify the conditions that need to improve in order for your business to be successful.

On completion, save and email to [email protected] Be ONE OF THE FIRST 15 to receive a complimentary one on one Strategy Session with Lesley Ann.

Receive valuable feedback and plan your strategies to make your business work for, not because of you!



Section 1: Strategic Direction STATUS STATEMENT

1. The business has a clear, written statement of what it intends to be in the future.

2. There is a clear understanding of the business’s place in its markets, how it compares to other businesses, and how it is differentiated, favorably or unfavorably, from other businesses.

3. The business has a “business model” (its way of doing things, earning income, and operating key systems) that was intentionally created (not the accidental result of people “doing their thing”), and is consistently effective (creates customer satisfaction and generates a strong stream of profits).

4. The business has an effective “business personality,” meaning that it has important values and beliefs that are shared by all, the people have productive attitudes, and they behave in ways that contribute to the success of the business.



STATUS STATEMENT

5. The business has clear long-term goals and objectives, which are understood by everyone, and which are realistic but challenging, have target dates, and can be tracked.

6. The business has a clear understanding of its strengths and weaknesses compared with the competition, its ability to withstand external threats, and its ability to identify and take advantage of external opportunities.

7. The business has clear strategies to eliminate or reduce its weaknesses and to create or improve its strengths, in order to achieve success.

8. The business has a written business plan. Business planning is an ongoing process rather than a one-time thing. The business plan is adaptable and continually updated. It is actively used as a tool to guide the growth of the business (not a one-time report that gathers dust on a shelf).



Section 2: Market Knowledge

STATUS STATEMENT

1. The business has identified its best customers, and knows how to attract more customers like them.

2. The business understands how to use demographic and psychographic information to identify “target” markets.

3. The business knows how to identify customer needs and preferences, and how to determine which are the most important (“driving”) needs and preferences.

4. The business has identified all the points in its target customers’ lives at which the business has opportunities to influence them (they’re called “TouchPoints”), and has created systems to create favorable impressions and customer satisfaction at each TouchPoint.



5. The business understands the customer’s purchase decision process and how to help the customer at each step of the process.

6. The business has established a strong identity and brand for itself in its target markets. The identity and brand are clearly and favourably differentiated from the competition.



Section 3: Market Reach

STATUS STATEMENT

1. The business knows which are the best channels to reach its target markets with advertising and other communications.

2. The business knows how to create messages that appeal to and inform its target markets, and that will attract potential customers.

3. The business knows the importance of consistency, frequency, and cost-effectiveness in its marketing communications.

4. The business has an effective marketing communications strategy for each target market that appeals to the driving needs and desires of its target markets and which is cost effective.

5. The business has an active and effective public relations strategy, which reinforces its marketing strategy. The public relations strategy includes valuable community service and effective communications.



Section 4: Marketing Relationships

STATUS STATEMENT

1. The business understands the difference between marketing (reaching target markets with messages that attract customers), and selling (interacting with and adapting to individual customers after direct contact has been established), and that the selling process is highly personal, interactive, and customized as much as possible to each individual customer.

2. The business knows how to create selling systems that exactly mirror and support the customer’s purchase decision process.

3. The people in the business view customers as allies to be helped, rather than adversaries to be overcome. They’re focused on the customer’s needs for products and services, not the business’s need for income. They see their role as helping and advising, rather than persuading and manipulating.

4. The people in the business know how to listen to customers in order to understand their conscious and unconscious needs (“deep” listening), and how to match the business’s products, services, and processes to the customer’s needs.



STATUS STATEMENT

5. The business has sales scripts to guide its sales people. The sales scripts are adaptable so that sales people can deal with customers as unique individuals, not as look-alike stereotypes.

6. The business provides its sales people with all the tools and support they need in order to succeed. [Note: list the various selling tools and supporting systems the business provides.]

7. The business’s sales process and the sales support systems and tools are all coordinated with the marketing communications strategy, the product strategy, and the overall positioning and differentiation of the business.



Section 5: Products and Services

STATUS STATEMENT

1. The business knows how to use its knowledge of the customer to create the best possible products and services (those which best satisfy the customers most important needs and desires).

2. Above and beyond the “product” the business knows how to use its customer knowledge to create systems, customer services, and a supportive business environment that meets customer needs and creates customer satisfaction.

3. The business has a pricing strategy that gives customers the sense that they are receiving fair value, and provides competitive advantages in the market.

4. The business continues to satisfy its customers even after the sale with appropriate follow up, services, and communications.

5. The business has systems for getting feedback and suggestions from its customers, and also from those who did not become customers.



Section 6: Systemization

STATUS STATEMENT

1. The key people in the business understand systemization and why it is essential for business success.

2. The business has a strategy for continuous improvement and innovation through systemization.

3. All the important functions and activities in the business have been systemized, or are on their way to being systemized.

4. All systems in the business are documented.

5. All systems in the business are continually monitored and improved at every opportunity.



STATUS STATEMENT

6. When problems occur in the business, they are solved systematically (by creating systems) rather than by randomly “fixing” them.

7. The business quantifies and tracks all its important activities and results.

8. The business has an organization chart. The organization chart is based on jobs and job requirements, not on individual personalities.



Section 7: Money Management

STATUS STATEMENT

1. The business has a good bookkeeping/accounting system and keeps its financial information accurately and up to date.

2. The business manages its cash well and has little or no risk of cash deficits.

3. Key people in the business understand how to maximize the market value of the business and there is a good strategy for doing so.

4. The business has little or no money tied up in idle/unproductive assets, excess inventory, inefficient systems, and the like.



STATUS STATEMENT

5. Financial statements such as the Profit and Loss Statement, the Balance Sheet, and Cash Flow Statements are produced regularly and are actively used as tools to manage the business.

6. The Key people in the business understand its accounting/bookkeeping systems, and use accounting information (especially cost information) to manage their responsibilities.

7. The business has all appropriate financial controls (to control excessive spending, eliminate the potential for criminal activity, and provide appropriate financial support to the various parts of the business).

8. The business has a budgeting process and is able to meet its budget month after month.



STATUS STATEMENT

9. The business has sufficient financial resources to withstand downturns and unforeseen circumstances.

10. The debt position of the business is reasonable and appropriate for a business of its type and size.

11. The cost structure of the business allows for healthy profits. The business tracks and controls its costs carefully.



Section 8: People Management STATUS STATEMENT

1.The business has the right number of people working for it, and they have the right skills to do their jobs well.

2. The business has an effective system for finding and hiring good people.

3. The business compensates its people appropriately, with fair and appropriate pay and other forms of compensation.

4. There is a written job agreement for every job in the business, and the right people are assigned to the right jobs.

5. The business has effective systems for training and developing its people.



STATUS STATEMENT

6. The business quantifies and tracks the performance of every person working for the business.

7. The leader of the business holds periodic company meetings (for the purpose of keeping everyone informed about the goals of the business and its progress, and to build morale and a sense of teamwork among employees at all levels).

8. The supervisors and managers in the business meet periodically with the people reporting to them to review their performance, receive feedback from them, and contribute to their development.



Section 9: Business Conditions

STATUS STATEMENT

1.The business has systems for anticipating business conditions and making judgments about how to take advantage of potential opportunities and minimize the problems of unfavorable conditions and events.

2. The business has systems for monitoring the competition and continually making “course corrections” in order to remain competitive in the market.

3. The business has the resources to withstand potential shocks such as economic downturns, unanticipated lawsuits, new competition in the market, and other potential problems.



Section 10: Leadership

STATUS STATEMENT

1.The business leader is aware of his/her strengths and weaknesses, and is taking steps to develop his/her leadership capabilities. (Note: people consistently overrate their own skills and abilities, so be completely honest and even a bit “harsh” in your assessment.)

2. The business leader is highly motivated and has the self-awareness to understand what “drives” him/herself to the highest levels of personal performance and to have an unshakable commitment to the success of the business.

3. The business leader has the ability to manage the minute-to-minute details of the business while at the same time accomplishing the long-term goals.

4. The business leader is personally highly productive, with a mindset that focuses on results and the ability to make the best use of his/her time and talents.



STATUS STATEMENT

5. The business leader has the ability to inspire and motivate the people in the business to achieve the goals of the business. This includes motivational speaking skills (persuasion), setting the example (being the model of excellence), and following his/her own rules.

6. The business leader is adaptive. S/he finds the most effective course of action for the situation rather than insisting on “my way or the highway.”

7. Final and most important statement: The business leader understands that the success or failure of the business depends completely on him/herself, and not on external factors like business conditions. The leader takes full and complete responsibility for the success or failure of the business. If the leader doesn’t realize this basic truth about business, s/he is wasting time with this business assessment.



Based on what you have learnt by doing this Assessment, list your Top Ten Priority actions here;

TOP TEN PRIORITY LIST

No. Strategy By When

1

2

3

4

5

6

7

8

9

10

On completion, save and email to [email protected] Be ONE OF THE FIRST 15 to receive a complimentary one on one Strategy Session with Lesley Ann.

Receive valuable feedback and plan your strategies to make your business work for, not because of you!

mailto:[email protected]

a c abc analysis worksheet - nextlevelup.com.au

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