Getting your business up and running is an achievement in itself but how does a business owner navigate their way when their business is growing?
Planning is the key…
At the beginning of every year or financial year, spend the time planning your financial goals for the year ahead and what you are going to do to achieve them. Big business do it and it works.
Below are just a few activities large business use to stay relevant in a competitive market place and it applies to all businesses.
Know Your Audience
When you think about who you’ll be doing business with who do you see? Understand what your target audience like about your business or don’t like about your business. Even successful businesses who seem to be thriving sometimes don’t actually know why they are successful or what it is that brings people in the door and if there is a change in the marketplace, business performance can change as quickly. Ask.
What price do I charge for what I am offering? You may think you’re worth a million dollars but what does your target demographic think? After all without paying customers you’re not worth anything.
What is it people get for the price they are paying? Without going into a price war with your competitors consider what price point you can charge that will cover your costs, bring in a margin and that customers will tolerate.
Point of difference
When a customer chooses your business over any other there’s a reason. There was something you had to offer that your competitors didn’t have it’s important to understand what that is. This doesn’t always have to be about price. Your business might be attracting a certain group because they really relate to what you are offering. You might be a café where cyclists love coming to or you might be a food van with a twist on the menu you offer. Clients get along really well with their accountant and trust that person.
Over the next twelve months what activities will your business do to stay relevant in your audience’s mind? Knowing the peaks and troughs through the year helps you determine what activities you should you plan to help support the quieter times and how to maximise the busiest times.
Working out your activities the year ahead and understanding exactly what’s involved, how much they will cost and also anticipating what the financial returns to your business will give you control over the direction of your business.
The benefits of having a plan for at least twelve months is that you have control of your business and how it’s going to get there. If you’ve researched and analysed the plan well enough to understand what’s involved and how much it should cost there shouldn’t be too many surprises. Naturally things come up you can’t anticipate but you can always adapt your plan to take changes into consideration.
A business plan will also nut out the activities that work in generating revenue and weeding out those that don’t and should be discarded.
Putting a cost to all the activities involved in your plan is important as is forecasting your returns. What will all your efforts bring you if you understand your business well?
Sometimes your business just has some key areas that are problematic or need a shake up and this still requires good analysis and strategic planning.
Lots of work above and beyond running your business day to day but, its worth the effort.
Feel free to contact us to book your FREE consultation and lets start writing a comprehensive business plan for you!