2016 is winding down and many business owners, myself included, are getting excited about setting those 2017 goals. 2017 is the new promised land. It’s an uncharted, unblemished, clean slate of possibility.
BUT… if you don’t take the time to do a thorough review of the current year, chances are you’ll experience a 2017 that looks a lot like 2016! I LOVE the potential of a new year as much as anyone. I just want to make sure we are building on what worked, phasing out what didn’t, and going into the new year with a solid strategy in place.
Here’s 7 areas to look at in your year-end review.
- Marketing Cost and ROI: So much of your business growth starts with marketing. I recommend that business owners have 5-8 marketing strategies they use on a regular and consistent basis. That way you don’t have all of your eggs in one basket. Now is the time to review your different marketing campaigns. What is the client acquisition cost in each of those strategies? Do you have certain campaigns that convert better than others? Do you have campaigns that are nearing the end of their life cycle and need to be retired this year? Are there new and emerging marketing trends, platforms or strategies you want to try this year? Asking yourself these questions will help you go into the new year with a solid marketing plan and will keep you from jumping on every new trend that comes your way.
- Profit and Loss: Most business owners track their sales. But I’ve seen far too many high sales businesses who are still struggling for cash flow to believe that most business owners watch their P&L statements closely. I’ll take high profits over high sales any day. Ideally we should all be looking at our profit and loss statements monthly. And in addition, I recommend that you schedule an additional year-end financial review where you really comb through your statements. Look for ways to cut costs. Look for ways to increase profits. Look for areas where you are leaving money on the table. Go into the new year with a commitment to being profitable.
- Pricing: Do prices need to change? If so, the new year is a good time to do it. If costs of goods or labor have increased, that increase will need to be reflected in price increases. You can also increase end of the year sales through informing current customers of upcoming price increases.
Your business model: Your business model is not something I recommend changing all together without serious thought. However, adjustments are critical. For example, I have a client that is an alternative health provider who will be moving into product sales this year through adding a line of healthy teas. An existing service model will now add on a product sales model. Maybe you’ve been a volume business and want to shift into more of a boutique model working with fewer high end clients. Adjustments to the business model are healthy. This is one of the areas that you can really craft the experience you have while running the company. Just be forewarned, any changes or shifts to the business model are a big deal! It will require significant updates to your systems.- Sales Department: Sales, sales, sales. We need them, we want them. And your sales department will likely be a “hands on” department forever! Embrace your sales system and team this year. Look at what didn’t work, what you want to create, and how you want to sell. I am a big fan of every business having an in house sales team. It may be one person, but someone needs to be focused on the sales of the business. Even my orthodontist has one dedicated person in the office closing sales. Make sure you have created time and space to give your sales department the proper time and attention.
- Talent and Team: Now that you have a more clear picture of “what” needs to change, you can shift into looking at “who” needs to change. Business owners love innovation. Employees tend to love consistency. As a business grows, sometimes the owners vision outgrows the ability or desire of the team member. You may have someone who has been on your team forever, and while they were a fantastic fit 3 years ago, they may be holding back your ability to grow because they fight against change. I like to see myself surrounded by innovators and collaborators. I like innovators because they bring the ideas for growth to me. I like collaborators because they are team players and will work together, setting aside ego, to accomplish the projects at hand. Check in with your team members and make sure you communicate the direction of the company in the new year. Either get them on board with your vision, or replace them with someone that can support the goals.
- Your happiness and wellbeing: Do you love making money and doing business? Or do you love HOW you are making money and doing business? I’ve asked myself this question recently and have been surprised by how enlightening it is. Just because you are making money, doesn’t mean you are happy running your business. If you are not experiencing the quality of life you want, the self-care you need, or the relationships you desire, then make some big changes in your business. Entrepreneurship is all about lifestyle and freedom. Make sure you are experiencing that in your business, or do it differently! Your happiness matters.
Your business model: Your business model is not something I recommend changing all together without serious thought. However, adjustments are critical. For example, I have a client that is an alternative health provider who will be moving into product sales this year through adding a line of healthy teas. An existing service model will now add on a product sales model. Maybe you’ve been a volume business and want to shift into more of a boutique model working with fewer high end clients. Adjustments to the business model are healthy. This is one of the areas that you can really craft the experience you have while running the company. Just be forewarned, any changes or shifts to the business model are a big deal! It will require significant updates to your systems.
2017 is right around the corner. When it comes knocking, I want you to answer the door with a bouquet of lessons learned from 2016, and a fresh supply of vision and strategy for the new year.