January/February 2014

COMMUNITIES: PRIVATE PRACTICE
Nine ‘Resolutions’ for Creating the Best Odds of Success in 2014

By Bill McBean

The confetti has fallen, the ball has dropped, and the champagne has been popped—2013 is officially over, and 2014 is underway. For many business owners, that means doing a postmortem on their businesses by looking back at what went right and what went wrong in the year gone by. The reason for doing a 2013 postmortem is simple. It supplies owners with current facts about their business and the market so they can use the information as they look forward and plan for 2014. Here, I offer my advice on what you can do, starting now, to create success for your business this year.

I suggest breaking down your 2014 planning into what you need to do internally—with processes, employees, yourself, etc.—and what you need to do externally—with customers, marketing campaigns, and so on.

Internal Resolutions

Evaluate your leadership. Being a great leader begins with a self-analysis of your leadership ability. You have to look carefully at what’s working for your business and what isn’t. Did you supply the business with what it needed to be successful? Did you have the right people in the right chairs? Are employees being paid based on what you want them to accomplish and expect from them? Did you let any bad habits slide that need to be addressed? What should you do differently this year?

Do a top-to-bottom walk-through of your systems and procedures. Examine which processes are working and which need improvement. Determine which processes are outdated and exist only because “it’s the way it’s always been done.” Rededicate your business to upholding important processes, and your understanding that processes operate your business—and employees operate the processes.

Kick off a cost-cutting, gross profit building mission. This is a powerful weapon for an owner. Look for ways to increase gross profit and cut costs as they have a dramatic positive effect on profits and cash flow. Don’t assume that you know how much things are costing you, or that your employees are reacting to new sales opportunities. Take a good look at your books. And know that sometimes you don’t have to make cuts; you simply need to renegotiate vendor contracts.

Reengage employees. Show your employees that you care. Sometimes it’s as simple as saying “thank you” for a job well done either verbally, with a handwritten note, or with a handshake with $20 attached. You might allow them to take a paid afternoon off and give them movie passes. It’s these simple things that all add up to developing an engaged staff.

Set some realistic, specific goals for the year ahead. Then, dial up the “aggression factor” just a little bit more. In other words, aim high but be specific. If your goals aren’t measurable, you won’t be able to gauge your progress and eventually you’ll stop pursuing them. Setting realistic goals, putting a plan in place, and routinely checking in with employees to gauge their progress is the best way to be successful.

External Resolutions

Boost your product/service offerings. The products and services you offer are the core of your business. Think about what you can do to squeeze out another service offering with what you already have in place. People need what they need, when they need it. Make it easy for your customers to get what they want.

Revamp your marketing campaign. Many companies see marketing as an expense, but it’s actually an investment and deserves your focused attention. Think about who your customers are. Are you marketing to them in a way that makes sense? Your attention should be focused on which services are selling and where your customers go for information. Determine who purchases your services, who are the easiest customers to attract, and which services bring the most gross profit.

Find new ways to impress loyal customers. It’s essential that you find ways to protect your customer base by developing very loyal customers. Consider what would keep customers continually coming to your business. Remember, habits are hard to break. The more customers come to your business, the stronger the relationship they create with it and your employees, and the more comfortable they feel. Find the answers to this and you’ll quickly find your sales and profits are increasing regardless of the market.

Get knowledgeable about economic/tax changes and how they’ll affect you. Be proactive and seek out a trusted financial advisor. Ask him or her what upcoming tax changes will mean for your business. Or, ask your banker about your overall market, which industries are showing strength, and which are struggling. This can give you a look into the future on which services may have increased demand and which may lag.

There’s no reason 2014 can’t be the best year yet for your business. In order for that to happen, you have to look ahead. By taking the time right now to plan for the year ahead, you’re making big opportunities possible for your business.

Bill McBean is the author of The Facts of Business Life: What Every Successful Business Owner Knows That You Don’t. For more information, visit www.FactsofBusinessLife.com.