It is that time of year again, a time when nearly everyone is thinking about how to make changes that will improve their lives in the coming year. The typical personal resolution will include something about health or physical fitness – eating better, losing weight, exercising and the like.
So this year, while you create your own personal resolutions, why not take some time to evaluate your business and see what aspects need a healthy fix?
Here are the top 5 ways to get your business in shape this New Year
1. Give your business an annual check-up
Just as you would see the doctor for an annual physical, it’s equally important to give your company a yearly check-up. Take some time to make sure you evaluate every aspect of your business to see if your company is on track to be successful and profitable in 2013. Take a look at the key elements of your business: your customers, your employees, your business partners, and your products.
Check your performance against benchmarks, just as you would have your blood pressure checked. Do not assume that no-news is good news. Customers and employees often go very silent just before a departure. Reach out and thank them for their support. Ask how you can improve in the New Year. Consider involving key stakeholders in your planning process. Get outside input from a trusted advisor. Use this information to set concrete, actionable goals and objectives for the New Year. Don’t coast into the New Year. Chart your course and take control of it in the first quarter.
2. Take a close look at your numbers
Although we might look healthy, sometimes looks can be deceiving. Despite looking fit, we might find that we have high cholesterol or high blood pressure, or could afford to lose a couple of pounds around the middle. The same is true for your company’s budget.
Is your revenue concentrated in a few customers? Is your marketing budget getting results? Was your sales compensation plan effective? Is your supply chain secure? Are there areas where you can ‘trim’ unnecessary expenses?
Remember, just because you have been investing dollars in a certain business strategy for years, that doesn’t mean you must continue to do so, especially if it is no longer benefiting your company. Evaluate every major expense from your General Ledger from the top down. Benchmark existing