You’ve heard the expression “Happy wife, happy life?” Well, for small business it should be “Healthy business, happy life.”

Why does a healthy business translate into a   happy life?  Healthy businesses create profits to support your lifestyle. They create an interesting place to be every day. They provide intellectual support, fulfillment, satisfaction, a place to employ your friends and relatives, a legacy for your children and grandchildren, a place to escape from personal problems, a means to helping your community, etc. etc. etc. Aren’t these all elements of “happy?”

What constitutes a healthy business? Some would say profits are the only demonstration of a business’ health.  I would disagree. A healthy business is also one which can sustain itself through both good and tough times. A healthy business is one which can withstand the unexpected. The unexpected can range from weather (Superstorm Sandy) or other catastrophe (such as a fire that destroys or severely injures the plant). The unexpected can also equal a huge order you were not anticipating that requires more staff, more supplies and other drains on your resources. The unexpected can include a major shift in the demographics of your market or an obsolete product or service.  Healthy businesses are also those which provide their owners with pride and fulfillment because of the superior products/services. A healthy business gives back to the community through contributions of cash or staff or other needed things.  A healthy business maintains its vendors and clients because of a great relationship. A healthy business supports and encourages not just the owner and his/her family, but the entire business family- employees and others. Healthy businesses are also able to adapt to changing conditions and grow or stay stable.

Is your small business a healthy business according to these parameters? If not, here are some steps you can take to better and maintain the health of your business:

-create a written business plan and update it every year;
-annually review key things such as your business plan, insurance coverage, your list of advisors, your banking relationship relationship and their benefit to you;
-constantly review your company’s financial condition- assets, liabilities, income, expenses. This, of course, requires you to have the appropriate financial accounting software available to you. Make that happen!
-constantly review your relationships with key vendors/suppliers, clients, and others necessary to the success of your business. Reach out to them to find out what needs improving and respond;
-check on what your competitors are doing that seems to be working and adopt the things that work as appropriate;
-stay abreast of current and future developments in your field;
-monitor your industry for changes, improvements;
-stay educated and make sure the people you rely on are up to date;
-talk with trusted fellow business people and adopt best practices;
-keep track of your goals and the progress you are making at hitting those goals;
-be flexible. If one thing isn’t working, do not be afraid to change course;
-take risks. Anything worthwhile is worth taking risks for… that includes your business.

A healthy business that can financially support your family, employees and their families, community and others while giving you, as the owner, satisfaction, fulfillment and pride is certainly worth whatever effort it takes. And, in the end, this healthy business will contribute to your happy life!