The New Year often inspires high expectations for positive change in many business owners. However, by the end of the first quarter, many business owners find themselves less optimistic. It’s easy for immediate day-to-day problems and tasks to overwhelm you. This year, take a step away from the insanity and embrace a plan that works.
Dave Lavinsky’s company has helped its clients raise more than one billion dollars to help start, grow, and exit their businesses. Here’s his advice.
“Too many business owners focus solely on their profit-and-loss statements. It’s critical to focus more on the business assets. What’s going to allow you to expand your reach and grow your company?”
Lavinsky suggests focusing less on profits – and more on clients, employees, systems and partnerships – all of which can be leveraged for significant future growth. Solving problems will not grow your client base, but planning and execution will.
Here are 7 Critical Components to Business Success in 2012
1.) Conduct a SWOT Analysis: Assess your company’s strengths, weaknesses, opportunities and market threats. A SWOT Analysis is the first step in creating a business strategy for the New Year.
2.) Company Goals: Set income goals as well as internal goals for a five-year point. Will you continue to market locally, expand regionally, focus on new targets or stay the same? Brainstorm and lay it all out on the table, then break down your goals and create a one-year plan. Decide which goals are best to execute this year in order to achieve your long-term goals.
3.) Competitive Analysis: Always be prepared for the inevitable. Imagine that your competition is MORE on top of things than you are. What steps would they take that could essentially threaten your business? Counteract their efforts, even if you are just imagining, and make a solid contingency plan.
4.) Marketing Strategies: What strategies have generated leads and what haven’t? If one marketing avenue is no longer working – consider the vast marketing channels available to you. Spread out your marketing dollars and include things like direct mail, pay per click, print advertising, and other marketing resources.
5.) Operations Plan: Ensure that your marketing strategies are carefully incorporated into your operations plan, as well as all of your business initiatives/goals for the year. A software program such as Basecamp HQ can be tremendously helpful at keeping staff members on task with their current assignments, and makes it easy for an Operations Manager to track time dedicated to each task. This visual of tasks and goals can be tremendously helpful in keeping everyone on the same page.
6.) Define Your Audience: Create a target persona – what is important to your target? Why do they buy the way they do? What are their key problems? Include demographic data such as location, gender, socioeconomic, age and race.
Feel like your target audience is too general and widespread? Would you rather be a sardine in the ocean or a whale in a pond? Lavinsky suggests “Niche down and own your market. Once you do this you can grow into other markets.” It is easier to start small and expand later. Once you know your target, own it. To be successful marketing to your target, it’s essential to be an “expert” in that particular field…or at the very least, appear to be.
7.) Define your team: Don’t try to do it alone. Think about the people you want and need to grow your company. What skills have they developed? What training will help them achieve bigger and better things for your company in the future? Do you need more help? If so, how will you obtain the best resources that will help you grow your business?
I hope these 7 Critical Components to Business Success in 2012 have been helpful for you. If you have any additional thoughts or feedback, please comment below. We would love to hear from you.
