We have all heard this saying before.

What does it mean, and how can I tell if this is happening in my business?

Here are few tips, observations and questions to help analyze your own situation.

1. Marketing, Sales and Promotion

Every business acquires new customers and gets them to adopt its products and services. Do you have a marketing plan? As an entrepreneur, do you have confidence in your ability to acquire new customers?

2. Systems and procedures

Is everyone on your team rowing in the same direction? Every business struggles with establishing adequate systems and procedures. The more people involved in your business, the more important it is to have adequate controls.

3. Human Resources

When is the last time one of your employees paid you a compliment? When is the last time you caught one of your employees doing something you admired? Did you tell them? Are your employees happy working for you? Do your employees trust you? Do you trust them?

4. Accounting Administration

How much profit did your business generate last month? How much in the last year? Are your accounts receivables coming in within a reasonable time? Do you follow up and collect them? How long does it take before your invoices are mailed?

5. Repeat Customers

What percentage of your total customer list are new customers versus repeat customers? How many of your existing customers left in the last year? How many new customers did you acquire? Which is greater? If you have more customers leaving the business than there are new customers jumping aboard, you are probably losing money. You may have a quality-control problem. Get to the root of the problem. Repeat business is more profitable than new business. New business is the most expensive business to acquire.

These are just a few of the issues that are crucial to business, if it is to be successful and profitable. I am sure there are many more issues that I have missed that are specific to your business.

Choose Your Battles Carefully

Take the time to identify other battles that you have been fighting. Then ask yourself a few questions about the viability and profitability of fighting these battles. If the cost is higher than the reward stop fighting. Look for battles you can win.

The purpose of this advice is so that you can ask yourself a series of questions that will cause you to think about the status of your business. Then take the appropriate action needed to correct, improve and build your business.