The New Year is now upon us, which means that small and medium sized businesses around the world will face a new and diverse set of challenges over the course of the next 12 months. From stagnating wages to the threat of a global recession that continues to loom large, these challenges create a pressing need for entrepreneurs to plan ahead and create a strategy that can drive growth. If you do not know the answer to “what is strategic planning?” you should probably consult this post to help prepare you to improve your business.
The First Step
The first step to improving business performance in the new year is to understand the business performance definition and what it entails. Business performance is defined as a combination of management and analysis strategies that help business owners and executives to set goals and achieve them. There are three main components to proper business performance management: goal selection, goal-relevant data consolidation and managerial interventions regarding the data. Keep these areas in mind when you are devising plans to improve the performance of your business.
New Year’s Resolutions To Drive Ventures Forward In 2017
Touch Financial have recently published a post detailing positive New Years’ resolutions that can help businesses to grow in the next year. We thought we would build on this by offering further advice to entrepreneurs who aim to cope with everything that the next 12 months throws at them.
Commit to Stealing Market Share From Your Competitors
While the break over Christmas and New Year is often well-deserved, it also causes firms to lose momentum. This can create huge issues in the New Year, as you struggle to re-adapt to the rigours of daily work and intense market competition. You can also use this to your advantage however, especially if you adopt a proactive approach and spend the festive break researching your market and studying the competition. While everyone else is resting, you can improve your forecasting methods for business. This enables you to start the New Year on the front foot, and steal a march on your competitors as they continue to snooze.
Reconsider Payment Options Available To Customers
The range of payment options available to your customers can make a huge difference to your future growth, especially in an age where contact less solutions are continuing to offer choice, convenience and flexibility to customers. It is therefore crucial that you create an infrastructure that can offer these options to customers, with chip cards and Apple or Android Pay now becoming widespread throughout the UK. Integrating these payment options are likely to increase your turnover and sales conversion rates, especially with providers such as MasterCard and Visa having recently capped their commission fees.
Organize Your Cash Flow More Efficiently
Even if your business remains in a rude state of health, taking the time to evaluate your financial management processes and better organize your cash flow can make a huge difference in 2016. This will become even more important if a global recession does take hold in 2016, as a more efficient cash flow strategy and minimal changes to pricing and expenditure can deliver large cumulative savings over the year. Even if this does not translate into a huge increase in profits immediately, it will at least enable your business to consolidate and better react to changes in your market with more available cash.
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