It’s a tough world out there. Customers are demanding more. Competition is keen – sometimes from unexpected places. Your business must work harder and smarter to improve profits. And on top of it all, there always seem to be new taxes and regulations to deal with.
Sometimes however (not that this includes you, of course), business owners don’t make the best planners. “We are action-oriented people,” says Bill McBean, who launched and sold several businesses and is now General Partner in the family-owned firm McBean Partners. “But by taking a hard look at a few key places and putting a plan in place you can bank on a more prosperous future,” he says. McBean, author of The Facts of Business Life (Wiley, 2012) suggests these ways to put your re-energizing plan in place:
1) Improve your own leadership skills
Since success starts at the top, you should evaluate where your own leadership skills need improvement. Start by looking at what’s working for your business and what’s not. Evaluate honestly how things are going. Are you supplying the business with what it needs to succeed – equipment, time, capital and resources? Are you paying employees based on what you want them to accomplish? Have you let any bad habits slide that need addressing? Now you can look ahead and decide what you need to do differently.
2) Do a full review of systems and procedures
In essence, systems and procedures actually operate your business, thought many owners misunderstand this concept, says McBean. Again, evaluate what’s working and what isn’t. Look for outdated processes that continue merely because “it’s the way we’ve always done it.” For example, inventory must change with the market, along with pricing and policies, since what sold well a few years ago might not sell well now.
3) Go on a gross profit-building mission
This step alone is one of the business owner’s most powerful weapons. Look for ways to cut costs and increase gross profit. “Don’t assume you know how much things are costing you,” says McBean, “or that your employees are reacting to new sales opportunities.” Ask yourself: What expense mistakes did we make last year and how can we avoid them now? But don’t cut just for the sake of cutting. Look for smart ways to save money and start building a cash cushion.
4) Re-engage employees
A successful business needs employees who care as much about the company as you do. “Engaged employees are energized,” says McBean. “They handle problems on their own and actively look for ways to improve the business.” Seek out new ways to show employees you care. Even a simple “thank you” can help tremendously. A paid afternoon off, movie passes or other small perks also work wonders. Find out what frustrates employees most in their jobs and – if possible – supply tools or training to improve the situation.
5) Set specific goals and amp up the energy
Your goal with goals is to aim high, but be specific, says McBean. And remember that goals must be measureable. If goals are not measurable you can’t gauge progress and will eventually abandon them. What gets measured gets done.
6) Boost you product or service offerings
Can you squeeze out another product or service from what you already have in place? “For example,” says McBean, “there’s nothing stopping an auto parts store from selling marine industry parts, especially if you’re located near water.” People need what they need, when they need it, so make it easy for customers to get what they want. And don’t ignore the power of impulse purchases or convenience items – even if they aren’t matched up with your core products.
7) Revamp your marketing
Look careful at who your customers are now. Have they changed? Are you trying to reach them in ways that make the most sense? For example, might the money you’re spending on ad placement be better spend on direct mail or online? Does social media marketing make sense?
8) Look for ways to impress loyal customers
Your customer base is critical so it’s essential you find ways to foster loyalty. Beyond offering a great product or service, what will keep customers coming? The prize goes to business owners who are more creative in answering this question, and who offer more than simply what customers “expect.”
About the Author: Daniel Kehrer, Founder and Chief Content Officer of BizBest Media, is a senior-level leader in digital media, content development and online marketing with special expertise in startups, SMB, social media and generating traffic, engagement and leads. He holds an MBA from UCLA/Anderson and is a passionate entrepreneur (started 4 businesses), syndicated columnist, blogger, thought leader and author of 7 business and financial books.