We’ve reached that time of year again – the time to start thinking about your new year’s resolutions!
Some of you will vow to spend less money at your favorite retailer while others promise to eat more fruits and vegetables. Honestly, I should add both to my lengthy list. But that is not what I came here to discuss.
What is on your small business resolution list for the new year?
December is often a month of reflection. As a small business owner, you may reflect on a win you had this year and develop a plan to duplicate that win consistently. Or you may consider obstacles you faced and brainstorm ways to avoid them in the future.
Reflection often leads us to resolution. As you reflect on 2021, ask yourself how well your business is hitting the mark in three important respects.
Your customer deserves the spotlight.
Customers write our paychecks. Therefore, they should be the center of attention.
Creating a unique customer experience is one way to stand out from the crowd. When some small businesses consider the customer experience, they only consider the environment within the four walls of their shop. Today, that experience likely begins online, before the customer even knows where you’re located.
This year, due to the pandemic, many small businesses were forced to shift business models and build out an online presence. They enhanced their websites (or built one for the first time), leveraged social media to become more engaged with their audience, and ensured that they were being found through search by optimizing their Google listing.
What have you done to create a better online experience for your customers? Innovative small businesses will continue to seek new opportunities to build their online brand.
Aspirational businesses are inspirational.
As an ASBTDC consultant, I encourage my startup and growth clients to look around and find an aspirational business within their own industry.
I do not encourage them to choose a direct competitor in the same area. Instead, I help them identify businesses that are similar to theirs, but two or three stages ahead of them in experience and located in a community with forward-thinking, progressive businesses.
Once they have selected their aspirational business, I recommend following the business on social media, taking a look at its website, examining the product mix, and, in some cases, patronizing that business.
When you become a student of a business that has “been there, done that,” you identify best practices and even learn from their costly missteps. As part of your plan for the new year, find your aspirational business to study.
Time to get in shape.
No, no, no…do not go out and get a gym membership that you’ll never use. Rather, now is the time to focus on getting financially fit.
It is puzzling to me that a large percentage of small business owners cannot accurately discuss their business’s financial performance for a given period of time.
I have many clients that are great at what they do. Some can diagnose and repair a mechanical problem and others can create amazing dishes and specialty foods their customers crave. But many do not understand the financial aspects of their business.
Sure, finance is an intimidating topic, but it is crucial to success. Every business owner should understand how cash moves through your business, the aspects of the business that drive profitability, revenue category profit margins, and performance ratios. When you do, you can make daily decisions that are strategic and move the business further.
Other goals aside from profitability are important, but, at the end of the day, a small business can only serve customers and continue to employ great people by being profitable.
Once you understand your own financial statements, benchmarking against your industry peers is the next step. My clients are often enlightened when they take this step. It starts a conversation that focuses on identifying gaps in performance and often leads to being financially fit.
Have you taken the time to dive deep into your financial statements? If not, resolve to start.
New Year, New Opportunity
While December is a great time to finalize your plans for the new year, it is also a great time to take a deep breath, enjoy some time with family and friends, and hit the reset button. With a new year comes new opportunity.
The ASBTDC is excited to walk alongside you in the new year and assist you in making 2022 your business’s best year yet.
Merry Christmas and happy new year!