With 2023 fast approaching, it has us reflecting on the year that 2022 was. All the goals reached and relationships fostered. All the jobs completed and targets achieved.
But much like many personal aspirations when the new year rolls around, businesses can look for ways to improve their financial performance, team performance, and overall business health for the next 12 months and beyond.
Finding more efficient and beneficial methods of business early on in the year could substantially impact performance and help you reach your goals and achieve optimal profitability much sooner than predicted.
Consider these New Year’s resolutions for your business to make 2023 more efficient, profitable and healthier.
Identify key roles for growth.
A business’s employees are the keys to unlocking growth and increasing business value. Focus on the delegation to your key people and build a business that is less reliant on your personal exertion for its success. Start identifying key roles that need to be filled to drive further development for your business.
Use efficient streamlining.
Automations and effective systems can save you and your staff countless hours in the year ahead. Some take a lot of initial set-up, but the beginning of the year is the perfect time to action new procedures and upskill the team. What processes can be streamlined, automated or even outsourced for increased efficiency in day to day business performance?
Choose ‘Ideal’ Clients.
Some clients are just more trouble than they are worth. But how do you evaluate that? The first step is understanding your business’s capacity and how well you can service the client. Using current or previous clients as an example may assist you in identifying which client would be ‘ideal’ – those who are perfectly satisfied with your service/product – and retain their business. Use these same goals and expectations to evaluate a new potential client’s value. Having more of these ‘ideal’ clients in the year and accepting jobs more wisely will benefit the business.
Charge the right price.
What is the minimum that you should be charging? Is your profit margin good, or could it be better? With a high quality of service and a deep understanding of your client’s needs, you can price accordingly. Your pricing takes into account your desired profit margin, as well as a consideration of the rising costs of labour and materials. Review your pricing and ensure you are charging the right price in 2023.
Clear digital clutter.
Most business owners spend money on unnecessary software, programs, services, and other items they rarely or never use. If you need help remembering all your subscriptions, go through your bank statements and credit card bills to see what you are being charged for each month.
The same goes for your continuously growing inbox. What newsletters or updates have you subscribed to and then never had the time to look at? Clear the clutter and click unsubscribe for a fresh start to the new year… but not to this one, of course.
Increase team productivity.
Understand your team’s productivity targets and how best to meet them. Consulting the personnel on whether meetings are required or if there are methods that would increase creative problem-solving, such as whiteboards in the boardrooms, would make for a fruitful and productive year ahead.
Create advantageous partnerships.
Whether internal or external, partnerships directly impact the budget/cash flow of a business. Develop a cash flow model to better understand your financial requirements and the impact of those partnerships. Use the new year to reaffirm terms that will meet your cash flow needs for a more symbiotic relationship.
Communicate your time worth upfront.
One of the main ways to do this is to ensure you have a tight booking policy that protects you as a business. Consider cancellation fees or a deposit to ensure appointments are kept or covered. This will communicate to potential clients and partners how valuable your time is and prevent unnecessary waste.
Reuse, repurpose or recycle spare parts.
Most people are unaware of how much money is lying around in physical assets. By repurposing items already owned or selling spare parts & old equipment, you can use the extra income to invest back into your business for a great start to the new year.
If you have any downtime this holiday season, take an honest and accurate look at your business. See what professional resolutions would create the best start for 2023, and give yourself the gift of a clear pathway to success with the best chance to claim every opportunity the new year offers.