What is your pipeline like?

Interesting question! Most small business owners don’t think about the flow of their work, but rather the immediate project(s) that they are working on.

The pipeline approach assists you with sales forecasting and is an early warning indicator to (temporary or permanent) business decline. There are two ways to use the pipeline approach; either showing guaranteed work or potential work.

Whichever you use, be very clear what the pipeline shows.

For example, a pipeline for guaranteed business could show: one end of the pipeline indicating your current projects, in the pipeline are your contracts waiting to be implemented and at the other end are the prospects, targets and referrals that you would like to introduce into the flow.

Along the way are the repeat business deals with current clients.

Here are some red flags to watch for in your pipeline:

* the pipeline is filled with potential business

* there are clumps and gaps instead of a smooth flow in your pipeline, that is, the business in your pipeline is not evenly distributed

* you have no prospects or target business coming into your pipeline

* there is an absence of repeat business from current clients

* there are no referrals

There is no reason why you cannot or should not be able draw a pipeline of your business now. If you can’t, then you have no idea of the work flow and cash flow of your business.

Did I hear you say “But I have plenty of work at the moment”? Yes, but many businesses (especially small businesses) are surprised by business drying up as they get caught in the euphoria of current business and its delivery, mindlessly assuming there’s more to come from your current source.

Take action today and draw your pipeline of business.