2013: Look back, plan ahead

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Bikky Khosla | 02 Jan, 2013
Albert Einstein once famously said, "If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions". In other words, reaching a solution requires one to be clear about what the challenge is. While true in life, I think this is equally true in business. We are at the beginning of another year, and no time could be better than this for us to look back and evaluate -- what worked well and what didn't in the year that just ended, and refresh our business strategies for 2013.

So let's, for example, start with sales and marketing. Did you get them right throughout the past year? Is there any glitch that you would like to fix this year? Which of your products sold well and which didn't? Which items pulled enough profit and which didn't? Shouldn't you weed out some deadweight products, or add some new items to your product basket? Do you need to take a relook at your pricing? What did your advertising actually accomplish last year? Taking into account of all these things will certainly help you fine-tune your sales and marketing.

Financials always require your regular attention. Last year, were you able to project your cash flow accurately, month by month? Did you review your profit and loss accounts and balance sheets regularly? And what about financing - did you worry about it only at the eleventh hour? Of course, financing is not easily available, but this is exactly why you should plan a little further ahead and not just when needed. These are basics, but I think always good to remember for a small business, whether it sells directly to individuals or other businesses.

Now, what are your thoughts on your firm's operational efficiency? In the past year, did you pay too much for rent, labour, and materials? Can't you now consider cutting some of the unnecessary expenses? Do you think implementing some new technology will help you maximize efficiency within your business operations? Did your customers take too long to buy? Do you need to sharpen your negotiating skills? Did you do enough to maximize your chances of repeat and referral business?

And last but not the least: what did you do last year to know and understand your customers? You need to find out exactly who are your customers, what do they care about, how much they understand your offer, and what do they need from you? Successful entrepreneurs know these things with exactness. Remember that the better you know your customers, the easier it is to know their wants and needs, and once you have this knowledge, you can sell more. This new year try to put yourself in your customers' shoes.

So let's get ready for 2013 with some soul-searching -- evaluating our business, brainstorming ways to improve, and putting some real steps into action. Here I would like to invite your feedback on what's your business boosting plan for this new year. Please share your thoughts in the Comment section below.

Wish you again a happy and successful New Year 2013.