by Bill Collier
Each year-end is bittersweet. On one hand, we’re a year older and may have fallen short of our plans. On the other hand, we get another 12 months to get it right.
As you wrap up this year, take some time to reflect and answer these questions:
• Did you meet your 2015 sales target? Why or why not?
• Did you meet your 2015 profit target? Why or why not?
• What were the main lessons learned this year (positive or negative)?
• What will be your 2016 “critical number” – the one main thing that defines “winning” for 2016?
Consider using the answers to those questions and the following list to aid in your planning for the upcoming year.
Set business goals, and have plans for achieving those goals.
Establish written plans for achieving your business goals. Be sure to assign accountability by using the following formula: WHO will do WHAT by WHEN?
Run your business by the numbers.
It’s important to regularly review your progress and results. Your review should include:
• Sales, broken down by product/service or customer segments.
• Gross profit, broken down the same way as sales.
• Major expense line items.
• Net profit.
• Cash balance and cash flow.
• Accounts receivable, if you extend payment terms to your customers.
Look at both month-to-date and year-to-date results and compare with the same period from the prior year. It’s also a good idea to look at your P&L statement numbers as a percent of total sales, which allows you to spot trends early.
“Hire hard” so you can “manage easy.”
Spend as much time as needed with the recruiting and interviewing process to build a strong team that will grow with your company.
Develop your team.
Rather than waiting a year to discuss performance with your team members, regularly visit with them informally. Get to know their talents, strengths and weaknesses. Praise them for their good work and coach them when you see opportunities for improvement.
Delegate.
You can’t do it all yourself, so don’t even try. Continually ask yourself, “Is what I’m doing right now the best use of my time and talents?” If not, find a way to delegate those activities to employees or outside vendors.
Spend quality time with customers.
Find out the answers to these two questions:
• What’s important to you? (Quality, customer service, product mix, etc.)
• How are we doing in those areas?
Develop relationships with your customers. Find ways to stand out from your competitors and to become the supplier of choice.
Make smart use of technology.
Technology has become so affordable and easy to use that even the smallest home-based business can afford to level the playing field with larger competitors. Get tech-savvy to reduce costs, improve communication, increase productivity and enhance customer service.
If you like these ideas, tweak them and make them your own. Commit to making 2016 your best year ever.
Bill Collier is the St. Louis-area head coach for The Great Game of Business. He works with organizations that want to improve financial results, engage their employees and create a winning culture. Bill can be reached at 314-221-8558, GreatGame.com/stl, GGOBSTL.com or bcollier@ggob.com.
Submitted 8 years 152 days ago