2011: Checklist for Success
Plan for Success in 2011
One thing smart business people can agree on: Real success isn’t an accident. While it may be “better to be lucky than good,” as the old adage says, you can’t depend on luck to get you through a shifting economy or a rough patch. Responsible business managers often take December to review their businesses’ past performance and plan for improvement. The Better Business Bureau Serving Eastern Michigan and the Upper Peninsula suggests this checklist for success in the coming year.
1. Have you completed a “Year to Date” accounting of your business? Whether or not you employ an accountant, a quick review of your business’ profit and loss statement can show you where you’ve made money – and, in many cases, where you could do better. Even the smallest business can run software that will help show the financial successes and lost battles, and it’s worth the investment in one of those programs. If you aren’t using one now, it might be daunting to cover 2010 after 11 months of activity. Resolve to purchase and use a dependable software program by the first of the year -- and really do it this time. (Don't be intimidated. Accounting software is available to help out even the most technophobic business owner.)
2. Set goals for the coming year. Some business owners sit down with department managers and outline reasonable goals for the next 12 months, but even a business with a couple of employees can plan to do better. This doesn’t mean more money or increased projects, although those are certainly common goals that lend themselves to easy tracking. It could mean fewer injuries on the job, more productive time, or some other creative goal that will benefit the overall performance of your business. You may look at each function of your business and assign it one overriding goal for the year. You’re going to increase the number of bills that pay within 30 days, create one more ad a quarter, and make three more sales calls each day? Great! Reaching any of those three should increase the overall value and performance of your company. As with any goal, make sure you design incremental markers to judge your progress toward something that can be reached.
3. Develop a system of rewards when goals are reached – and remind those eligible that the rewards are available throughout the year. A new bonus structure for your sales staff might be in order, but money is not the answer for everything. Increased cash may not even be a practical reward in some positions or businesses. Sometimes, rewarding employees with extra time off is more appreciated than cash. Be creative, and seek input from your employees to discover what would motivate them. Try to work as many of their ideas into the finished product as possible to give them ownership of a new program.
4. Review policies. Assuming your business uses a handbook for employees, has a sales manual, or any other internal documents that tell people how to do their jobs, it’s worth the investment of time to go over those policies and review them for changes. The first of the year is a natural time to review those policies or create new ones.
5. Check your competitors. It’s a natural thing to copy success. Whole fields of study are devoted to business models that were new and unique at one time, but have become the standard for American companies. You should take the time to see what’s working for similar businesses and, where it makes sense, duplicate or reinvent them for your company. That’s not to say that there isn’t room for improvement or tailoring services to your particular type of business. Ray Kroc’s business acumen and practices apply to a lot more than flipping burgers, and have been applied throughout the retail industry.
Here’s to hoping for a safe and prosperous 2011.