The 5 Business Fundamental Challenges

Introduction

Welcome to March! I hope you’ve had a strong start to the year, with January and February treating your business well.

Today, I’m stepping into my suit, shirt, and tie for a board meeting, a reminder of just how much growth can change a business, especially when you’re aiming for new heights.

I’m working with a company that's aiming to scale back to £3 million. It’s an ambitious goal, but every business has its own target, whether you're already at £4 million, £5 million, or starting from smaller goals.

Whatever your goal is, it’s time to get serious about achieving it.

Do You Want To Achieve Your Business Target?

My challenge to you today is: What exactly are you doing seriously about achieving that target?

Do you actually have a financial forecast in your business that you could measure and track performance against? Can you make corrective actions if you wander off course? It’s inevitable that you will.

The path to success is never A to Z. You’ve got detours around every letter in the alphabet.

For me, I reviewed the board papers last night, and when I asked the board members what their concerns were, the one thing we always came back to was:

• Where should we be?
• What does the forecast say?

Sure, the sales team might say it’s tough out there, or the operations director has challenges, but in reality, if you don’t have a solid set of numbers, you’re driving your business blindfolded.

If you’re tired of driving a car with the windscreen blacked out, then you need a solid strategy, a growth strategy.

Do You Have a Strong Business Plan?

You need a strong business plan, and you need to grow. Find a coach, a mentor, an NXD or join a mastermind, it doesn’t matter what they’re called.

Find someone to guide you.

Here’s a solid tip: if you’re struggling to get started, even working with your accountant can help.

Ask them to run some forecasts based on your predictions. If you’ve got someone in-house who does this, even better.

But finance is the number one discipline of running a business.

• Without finance, operations and systems can’t be purchased or implemented.
• Without systems, you can’t put people into your business to run them.
• People run businesses, but systems run businesses.

You can’t market without finance. Without capital, how will you go into the market?

How will you employ a sales team, have an online presence, or build an e-commerce store?

Corporate governance matters too. Without it, whether you run your business well or poorly, it won’t matter. You need to be compliant and accountable.

The 5 Disciplines of Business

Here are the five fundamental disciplines that all businesses must master:

1. Finance
2. Operations & Systems
3. People & HR
4. Sales & Marketing (Including Customer Success)
5. Corporate Governance

Now, here’s the challenge: Get a piece of paper and score yourself and your team’s knowledge out of 10 on each of these areas. How do you rate?

1. Finance

   • Can you read profit and loss accounts?
   • Do you understand capital, balance sheets, and forecasting?
     
     

2. Operations & Systems

   • Do you have systems in place for finance, customer service, manufacturing, marketing, and sales?
     
     

3. People & HR

   • Are your HR systems and people strategies aligned to your growth?
     
     

4. Sales & Marketing (Including Customer Success)

   • Do you have systems in place for attracting new customers, educating them, and retaining them?
   • Are you closing deals, winning customers, and outcompeting your competitors?

1. Corporate Governance

   • Are you compliant with regulations?
   • Do you hold regular meetings and document your decisions?

The Power Of Alignment

At NXD Navigator we call it the Power of Alignment.

When your business model, finance model, acquisition and retention model align, you achieve high growth.

In sales, do you have systems for customer success?

Are you focused on delivering not just a product, but an experience that builds long-term loyalty?

Personal Development

Wherever you feel that you have a skill shortage, it's time to focus on personal development. Don’t just read books, study, get into night school, take online courses, and participate in mastermind groups.

If you’re struggling with finance, find a personal development program focused on financial management.

The same applies to marketing, sales, or governance.

When you actively work on improving your knowledge in each of these five disciplines, your business will have the solid foundation needed for scalable growth.

Always here to help you start, grow, and thrive. Let me know how I can support your next big move.