My business is growing at a phenomenal rate, but I don’t see profits increasing. I work 70-hour weeks and feel like I’m losing control. How can I prevent myself and my business from self-destructing?

Every year thousands of small businesses self-destruct from out-of-control growth. Following are some key points to make a “health check” of your business. For each area, ask yourself what improvements you could make. Develop a written list of the things that can help you take control of your business— and then do it!

Attitude
How long has it been since you looked at where you’re taking your business? Do you get less satisfaction and more exasperation from your business? These are signals that your business may be running you instead of you running it.

1. Set a reasonable work schedule! Even if there never seems to be enough hours in the day, try to eliminate some of the mental pressures of work.
   
2. Take a break—even if it’s just a long weekend away from the business.
   
3. Realign responsibilities. If you have employees who are capable of handling certain tasks, let them do it.
   

Sales and Revenues
Even if sales are staying about the same, you’re losing ground. If revenues aren’t increasing, find out why.

1. Look in the yellow pages to see if you’re facing increased competition.
   
2. Have you lost some regular customers? Call them and find out why.
   
3. Review your offering of products and/or services. Is it time to diversify?
   
4. Look at how you, and your employees, are selling. Do you take every opportunity to sell to every customer?
   

Inventory Controls
Many small businesses have operating capital tied up in inventories. Having too much inventory or the wrong kind of inventory can create cash flow problems. Do you have old inventory and need to dispose of it? Do you match delivery records against invoices to make sure you only pay 
for what you received? Do you know how much profit you’re making on each item sold?

1. One of the fastest ways to create needed cash in a product business is to check inventories. There can be thousands of dollars sitting on shelves or in storage that is costing money.
   
2. Develop guidelines for reordering to prevent excess inventory.
   
3. Check your profit margins on every product and/or service offered.
   

Marketing
A business can’t survive without marketing. Be sure you’re getting the best 
possible return on your marketing dollars. Also take the time to find out what type of marketing program gives you the best results. Remember that the easiest and least expensive sale is to an existing customer.

1. The best marketing is a strong customer relations program. Make sure your priority is 100-percent customer satisfaction.
   
2. Use existing customers as a source of new customers. Offer incentives for referrals.
   
3. Track how customers hear about you or why they do business with you. Then build on those 
   strengths.
   

Finances
Many small-business owners are adept at their particular trade but hate to do basic accounting chores, like tracking profits and cash flow. Don’t underestimate the importance of understanding the financial aspects of your business.

1. Prepare monthly financial statements.
   
2. Keep track of all financial areas including accounts payable and accounts receivable.
   
3. If your accounts receivable are growing every month, you may be on the way to a cash flow crisis. Have a strong credit policy and stick to it. The faster you react to a slow paying customer the better your chance of collecting the debt.
   
4. The best time to approach a bank for a loan or a line of credit is when your financial reports are strong. Arrange for a line of credit with your bank for an amount equal to at least three months of operating expenses.
   

Expenses
There are only two ways to improve a financial situation—increase income or decrease expenses. Take a close look at all of your expenses—from the small stuff to the big expenditures. Be ruthless when looking for areas where you can save money.