“History does repeat itself” ... even in your business UNLESS you consciously break the pattern. The single most important strategic step to take to prevent repeating your business history in 2007 can be summarized in two words: Strategic Review .
Jumping into a new year without strategically assessing your 2006 results is deadly to your business. Why? Because you will repeat the same strategic mistakes, mimic the same performance and see limited gain for all your hard efforts.
I know, reviewing your prior year’s results is not as sexy as formulating new grandiose visions and goals for 2007. However, the benefits - such as, clearer direction, higher performance gains, and a stronger competitive edge - far outweigh the small investment of time and brain power.
Let’s look at the top 3 key strategic parameters you will want to address:
1. FINANCIAL RESULTS.
** What were your revenues, expenses and profit - overall and by each product or service?
** What % of your revenues/profits were generated by each?
** What were your strongest revenue months, what were your weakest months and why?
** What were your largest expenses and how did they add to your bottom line (quantify if possible)?
** What is your current debt and what % of expenses is being funded by debt?
2. CUSTOMER (CLIENT) RESULTS.
** What was the net increase in your customer base for the entire year? average monthly increase?
** What was your attrition rate?
** How does your customer base break down demographically: by age, gender, industry, income level, geography?
** What was your average revenue (or sale size) per customer?
** How does your customer base break down by frequency of purchase?
3. MARKETING RESULTS.
** Name all the marketing methods which you utilized in 2006.
** What % of your revenues and customer base came from each method?
** What % of your customers came through referrals?
** What % of your overall marketing costs were driven by each method?
There are many more parameters - such as human resources, operations, current and new product/service development, industry trends and opportunities - that can and should be addressed in your annual review.
When I start with a new client, they fill out my exclusive 7 page Smart Build Business Assessment. It gives a comprehensive snap shot of their current business performance -- financials ... product/service strategies, expenses and outcomes ... pricing strategies and philosophy ... and 20-30 other critical performance parameters -- as well as details about their future goals and direction. With such detailed information, I can see patterns in results, performance drains, missed revenue opportunities, under-leveraged strengths, and much more.
Answering even these few basic questions for yourself will jumpstart your ability to make smarter strategic business decisions in 2007. It's the first step to achieving exponential gains in your bottom line.
COACH'S RECOMMENDED ACTION STEP Once you have answered the above questions, now do a qualitative assessment of your 2006 business performance. Ask yourself such questions as:
** What were your most profitable products/services and how can you expand, enhance or leverage them in 2007?
** Which should you let go of?
** What are your best markets and how can you penetrate those markets further?
** What can you do to increase your customers’ purchasing rate?
** What can you do to minimize your marketing time and costs?
If you are tired of slow growth, marginal results or meager performance, don't let your business history repeat itself. Get strategically smart in tne new year. May you experience unstoppable business success in 2007!
Getting Business Smart in 2007 - To learn more about this author, visit Denise Corcoran's Website.
Like this article? Share it with your friends
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
Everything I know about business I learned from M*A*S*H's Colonel Flagg:
I just began to read another book just sent to me by a young man by the name of Corey Kossack.
BusinessWeek has a fun article about my buddies Jesse and Joe from J-Squared Media titled Who wants to be a Facebook millionaire? Jesse and Joe were founders of one of the TechStars teams this summer – when they sh...
