The Difference Between Being “Reactive” and “Proactive”

There is a big difference between being proactive and reactive in your business. Successful business owners focus on proactive. Being reactive is not only stressful and potentially expensive, it can kill your business.

Proactive business owners;

  • Plan ahead – they know what the next 1, 6 and 12 months should look like.
  • Have budgets – they know what their goals are in terms of sales, customer retention, average sale etc. They also plan their marketing spend and set goals for return on investment.
  • Understand the financials – they don’t wait until their accountant tells them business is ok to know business is ok. They check their sales, profit & loss and balance sheet regularly.
  • Focus on the business and customers they want to attract – they know who is profitable and who is not. They don’t waste valuable time and money attracting the wrong customer to their business.
Reactive business owners;
  • Never plan – they are scrapping by day to day hoping they will still be in business in 6 months.
  • Never set budgets – they are unsure how or why budgets are valuable or simply don’t see any benefit in having them, some are far too scared to set goals.
  • Hide from the financials – they don’t understand or want to know about the financials of the business. They hope that someone else has this under control for them. They are not sure who they owe money to and worse who owes money to them!
  • Take any business from anyone anytime – they are so desperate for cash they take any customer they can regardless of how profitable the work might be. They continue to work for customers that fail to pay on time. They discount prices and under quote just to get work in the door.

Do you identify with the proactive or reactive business owner? Maybe you identify with a bit of both. There is no shame in seeing your self reflected in the reactive business owner. Business can be scary; the financials alone frighten the heck out of most people. The important thing is that you do something to change. It is almost a new financial year, time for new challenges, new ideas and a fresh approach!

Melanie Miller

Small Fish Business Coaching Gold Coast


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