Separating the forest from the trees

How many of us are deeply entrenched in the forest of business, each perspective clouded by an intermittent branch or leaf that blocks your view?

The gullies, troughs, hills and peaks of our forest cause us to accelerate, slow down, detour or just simply stop for divine intervention. With each day that passes, the forest just seems to get denser and more overwhelming. Many of us rely so heavily on our internal compass to guide us that passing the same tree in the forest almost just occurs without us really knowing it.

In fact for some of us, running a business is akin to the myriad of hedges that Harry Potter found himself running through, not knowing the entry, exit or even the direction to run towards.

This year we have seen, and will continue to see, an increased level of retail rationalisation, merger activity, sales of businesses as the influence of a rapidly emerging marketplace of international retailers opening, the growth of online retail, maturing of some sectors combining with an increase to the cost base for some “unfit” retailers at a greater rate than their the sales line movement.

So with all these challenges, how do you maximise the value of your business investment?

Many years ago, I sat in the audience to hear a very wise speaker simply ask the audience, “What is the business of your business? And do you manage with the ‘end in mind'”?

How many of us spend regular time in the leadership of our business looking dispassionately and independently at the terrain? Equally, how many of us take the time to climb aboard the helicopter that allows us and our team the ability to rise above the forest and look down at all the machinations and sustainability of our business as a whole?

Philosophers among us might simply call this “the observer” or witness position. In any event the capacity to view your business independently (preferably with independent counsel) makes the point that taking the helicopter view at regular occasions gives a bird’s eye view of the business, a viewpoint necessary to effectively look at the direction and monitoring of strategy and successful implementation.

At the Retail Doctor Group, we have some simple guiding philosophies that guide our way of diagnosing a business. One of the first principles is that all businesses are for sale.

This is the first fitness step that differentiates the forest dwellers from the helicopter pilots. Which are you? Are you focused on making short run profit or sustainable recurring wealth from your business?

Brian Walker is Managing Director of Australasia’s leading retail consultancy, the Retail Doctor Group. For more on Retail Doctor Group’s Fit for Business program email businessfitness@retaildoctor.com.au or phone 02 9460 2882.