Now is the time to review, recalculate and realign your business for 2021/2022.
For most of us, we will have our business financial year starting 01 March 2021 and ending 28 February 2022. Therefore, this should be a time to plan, assess, and reflect on our previous year and build our strategies for the next year.
Not an easy thought or task when we, as business owners, have very little confidence or insight into how 2021/2022 will pan out. This, considering global and local economies are battling to recover from the 1st, 2nd and potentially even a 3rd wave of COVID-19 infections.
So what do we do and how do we look forward during times of uncertainty?
As the leaders in our businesses, it falls on us to guide our businesses, set targets and motivate our teams to achieve them. While we all want to see growth and improvement in this new calendar year, we may need to be a little realistic. Look at the stats – 43% of businesses deregistered from CIPC last year – the number of South Africans earning R 22’500.00 per month and more has decreased from ± 4’500’000 to ±2’500’000. These are just indications of how tough 2020 has been and that, for 2021, we still have a mountain to climb this year.
Therefor, your targets could be:
- sustain current revenue streams;
- increase current customer lifetime values (the average total spend of each customer);
- review and structure your current business model to adapt to current and predicted working environments;
- target cost-cutting mechanisms to work towards greater profitability and longevity;
- have a more controlling hand on cashflow.
For each of these, its essential put down a clear and measurable metric (a measurable unit that indicates if you have achieved or not reached your target).
The problem is that for most business owners, the task of just getting your business through the day, week and month already feels like a mammoth one. In that case, you’ll be wondering: How do I influence and inspire my team to work more and reach more when I’m not confident?
As a leader, it will fall to you to take the steps required to set these metrics. I am reminded of the following quote: “If you aim at nothing, you will hit it every time” – Zig Ziglar.
Sometimes, just putting a target down no matter how big, audacious and hairy it is or even seemingly small, will help you aim your business and teams in a single direction. Secondly, pulling your team together to put these targets down in writing will help define the strategies you need to focus on and help build that motivation.
Should you or your business need help with this or just want to find out about the benefits of having a business confidant, don’t hesitate to reach out to the OptiGrowth Team.