09-01-2008
Planning for success in 2008
by Karen Baldwin
Most small business owners will have used the Christmas / New Year holiday period to recharge the batteries after a hectic year, spend some much valued time with family and friends, and perhaps enjoy some time away from home – and rightly so.
But for those who want to hit the ground running in 2008, there is benefit in taking some time – even if it is only a few hours – during January to think ahead about what you want to achieve from your business in the coming year.
Many of us will have made New Year resolutions in previous weeks – probably related to quitting smoking, eating and drinking less or exercising more – but how many of us made New Year business resolutions?
What are some small, or significant, things that you could do that would make 2008 the best year yet for your business?
Often, when you want to move forward, you first have to look back. The benefit of hindsight can help set your future course.
So how was 2007 for your business? Ask yourself the following questions:
• What worked for the business in 2007?
• What were the impediments to the business growing and being more profitable?
• What were the highlights and lowlights?
• How and why did you secure new clients or customers?
• If any clients or customers were lost, why?
• Where do you want the business to be in 12 months, three years and five years? What do you have to put in place now to get there?
• What are the possible major challenges you could face in 2008?
• If you could change anything in your business right now, what would it be?
With the answers to these questions on hand, you can then start to look at these 10 specific areas of your business:
1. Business plan
A business plan, which is regularly updated, can help you manage changes to your business and plan for new opportunities. Firstly, do you have one? If yes, well done, reviewing this document will be your first port of call in planning for 2008. If you don’t have one, now is the ideal time to put one in place.
2. Marketing
A responsive marketing plan provides direction and ensures a systematic, clear approach to promoting your business. Increasing your efforts in marketing and promotion can be a crucial step towards expanding your business and client or customer base.
3. Personnel
Do you have the right people in the right seats on your “business bus”? Based on your future plans for the business, do you have the right people and enough of them to achieve your goals? You will need to consider the type of employees you need and the skills they will be required to have.
4. Finances
Do you need additional finance for growth? If so, have you considered the most appropriate form of finance for your business? Do you know how to improve your financial situation generally? Successfully managing your finances, particularly budgeting and cash flow, means you will have enough to pay your creditors and also have enough profits to put back into your business. Borrowing options such as factoring or asset finance are less risky than taking out a business loan.
5. Diversifying products or services
Is there scope to further build on the products or services that you currently offer? Could you get more business out of your existing customers or clients and attract new ones by adding to your service or product offering?
6. Exporting
Is there an opportunity to expand your business by exporting overseas? If so, you will need to develop an export plan. Within the plan, you will need to examine issues such as your target markets, customs requirements, international intellectual property and marketing strategies.
7. Premises
If business growth is on the horizon, an increase in the size of your operations, number of staff or the quantity of stock may mean you need to move to larger premises. If you are considering diversifying your product or service offering, you may need to open multiple premises to capitalise on opportunities in different parts of the country.
8. IT systems
IT systems are integral to the success of virtually every business these days. Most businesses, no matter what they do, can be paralysed if IT systems can’t support all aspects of the business – from managing the finances, to processing orders. The priority is to determine whether your existing systems are adequate and will be able to accommodate business growth or diversification.
9. Mentor or business coach
Participating in mentoring or coaching programs or seeking some one-on-one guidance can help you develop a greater understanding of business processes and practices, and equip you with the skills you need to grow and improve your business.
10. Succession
A succession or exit plan outlines who will take over your business when you leave. By planning your exit, you can maximise the value of your business and enable it to meet future needs.
Some considered evaluation of your business performance to date and comprehensive planning for the year ahead has the scope to make 2008 your most successful – and profitable – year yet.