Home  > Know The Direction of Your Business
 Share  Print Version  Email

Know The Direction of Your Business

Cotents from Dialog Axiata Sri Lanka

Small and Medium Enterprises (SMEs) accommodate the most important segment of the economy in any country. There are 2 reasons for this importance. It is an SME which grows and develops to be a large scale business in the future. This is one reason. The other reason is that the biggest contribution to the national economy from the business sector comes from the SMEs. If you are an entrepreneur in the SME sector, you represent the most vital segment of the business sector. This is the positive side.

However, there is another side where you should be extremely careful as an SME. It is obvious that a large number of SMEs pop up continuously in our country. More than half of them encounter the risk of failure at the end of the 3rd year from the commencement. A large number of SMEs move through a risky path, struggling with many business-related issues. In fact, only a very few enterprises enjoy the opportunity of becoming star businesses.

The main contributing factors for building successful star businesses from SMEs include the Entrepreneurial Capability and the Managerial Precision of the entrepreneur. Therefore, it is imperative for you to know the direction of movement of your business. A simple methodology to access the direction of your business is given below. What you have to do is to understand the questionnaire well, and to provide the most accurate answers honestly to each question. The method of assessing the direction of your business is given at the end of the questionnaire.

Questionnaire: Answer with YES or NO for the following

  • Are you investing money again and again to maintain the same momentum of the business?                                                          
  • Is the number of customers reducing gradually?              
  • Are the stocks being reduced?                                        
  • Is it difficult for you to draw a reasonable amount of money for your personal requirements?                                                                                                                  
  • Is the number of customer complaints ever increasing?      
  • Do you feel that you get stuck with financial issues although the sales are normal?                                                                       
  • Are the cheques issued by your business being dishonored?    
  • Are the stocks lying in the shelves over a considerable period?
  • Do you feel that your relationship with suppliers is being shattered? 
  • Has the trend of employee turnover become a nuisance?         

[a] If you get “YES” for any 4 questions or more, it is a sufficient indication that your business is heading towards a crisis.                                      

[b] If you get “YES” for the first 5 questions, it shows that your business is in a problematic situation which needs immediate attention.

[c] If you are convinced that the direction of the business should be corrected as per the results of the above method, it is more appropriate to consult a Business Development Expert or a similar institute.    

Business Development Centre. (BDC)

© Dialog Axiata PLC - Sri Lanka

 Share  Print Version  Email
Comments &Ratings (3) Overall  
  • Currently 4.7/5 Stars.
If you are a human, do not fill in this field.
Click stars to rate.
   Comments are truncated at 1000 characters
What Others Are Saying
Sort by
  • Currently 5.0/5 Stars.
chinthaka prasanne  |  February 25, 2013
  • Currently 5.0/5 Stars.
Kishor Hameed  |  August 11, 2011
  • Currently 4.0/5 Stars.
hasitha kahawita  |  July 27, 2011
Above questionnaire is a very good methodology for decide the direction of a business, It's no doubt.<br/>But as I think I suggest to add some more questions for this questionnaire.Such as "Are none of new customers come to your enterprise from a long period of time?", "Is the trend of resign of employee is increasing?", "Do not you have any idea of fast moving items in present?" ..etc.<br/>Thank you very much.