Improving business performance starts with a thorough assessment. In this guide, we show you the fundamental steps for a successful commercial diagnosis.
A diagnosis of commercial activity is a crucial step for examine the health of a society and identify opportunities for improvement. This article will explore the key steps in this essential process in detail. Let's start with data collection.
There are two data collection formats: internal and external.
Step 1 - Internal Business Data
The first crucial step of commercial diagnosis is the collection of internal data. This involves the information meeting from sources within the company, such as:
- Financial reports
- Sales data
- Performance indicators
- HR data
This data provides a accurate picture of the current situation of the company. Some of the things to take into account include:
The financial statements
Balance sheets, income statements, and cash flows provide critical information about a company's financial health.
Sales data
Sales by product, region, or distribution channel can reveal trends and opportunities.
Human resources data
Workforce, training, employee satisfaction... are important factors to take into account.
Step 2 - External Business Data
In addition to internal data, external data collection is just as essential. That means gathering information from sources outside of society, such as:
- Market studies
- Economic data
- Sectoral trends
- Information on the competition
This data helps to contextualize the company performance and to anticipate challenges and opportunities coming soon. External data sources include:
Market reports
They provide information on market size, demand, consumer trends, etc.
Economic data
Growth rates, interest rates, exchange rates, and other economic indicators influence business operations.
Competitive analyses
Understanding how competitors are positioned and what their sales strategies are can be a source of inspiration for the company.
Step 3 - Analysis of results: evaluation of performance indicators
Once the data is collected, another of steps to carry out a commercial diagnosis consists in examining the company's performance indicators. This includes analysis Of:
- Financial results
- Key ratios,
- Customer satisfaction levels
- Inventory turnover rate
- Other metrics specific to business activity
This audit provides a clear picture of the current situation and identifies areas that require particular attention.
Step 4 - Comparison with competitors
Comparative analysis is an essential part of the commercial diagnosis. En comparing performances of the company with those of competing companies, it is possible to determine where the company is located in the market. This comparison may reveal competitive advantages to be exploited or gaps to be filled.
Competitive benchmarks are useful for evaluating business performance in areas such as:
- The quality of the product or service
- The prices
- The distribution
- Brand awareness
Step 5 - Recommendations for improvement
Once sales data has been collected and analyzed, the commercial diagnosis leads to recommendations for improvement. These recommendations are based on a thorough understanding of strengths, weaknesses, opportunities, and threats that weigh on the business.
Recommendations can cover a wide range of areas, such as:
- The commercial strategy
- The methods used by salespeople
- Resource management
- Innovation
- Communication
- Marketing
They aim to Guiding society in implementing changes and initiatives that will optimize its commercial performance and competitiveness.
In summary, the key steps in a business diagnosis include collecting data, both internal and external, studying results to measure business performance, and making recommendations to improve its current situation.
This study provides society with valuable information to make informed strategic decisions and to strengthen its commercial position within its industry.
The Akimbo commercial diagnosis
Our team has developed the ultimate tool for ambitious businesses. It is 100% online and free. Completing this diagnosis will allow you to examine your commercial organization for accelerate the development of its sales. It has 25 questions, all related to our Akimbo sales equation:
Accelerate = Talents x (Skills + Processes + Tools).
The answers are intended to be as factual as possible in order to generate relevant analyses about the practices of your salespeople and their managers. Make sure you have ten minutes in front of you and you will receive the personalized results of your commercial audit by email!
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