2015-Strategy-Large

How 2 fix your Business Strategy

23rd January 2018

Summary: How to fix your business strategy to go the next level.

Outcomes:

  • A corrected business strategy for 12 months.
  • Taking you and your business to the next level.
  • Getting you to think about what is working and what isn't working.
  • Getting you to think about what you need to correct or change.

Steps

Step 1: Review Previous Year - what worked, what didn't? 

Look at the previous year. What did you achieve? What worked? What didn’t work? Be brutally honest with yourself. Do not hang on to old beliefs or tactics if they are not working for you and your business. What needs to stay the same? What needs to change? What about you has changed? Are the things you enjoy doing in your business the same?

Step 2: Decide on Monetary Goals

Decide on your monetary goals for the year. Aim to push yourself harder so that you are able to increase your earnings from the previous year. Your monetary goals should be your profits, not just your income. Your psychological state around money and the actions you take around money will largely determine your ability to achieve these goals.

Step 3: Look Critically at Current Situation vs Desired Situation

Look critically at your current revenue streams and target markets. Are they able to deliver the monetary results you seek in their current form? Do they need minor or major modifications? Should you penetrate the same markets? Should you add different markets? Should you sell the same products through different channels? Should you develop new products and add them to your portfolio? Do you need to change pricing? Or do you need to go back to the drawing board with new products for new customers? The key here is to breakthrough the things that are not working and that need to change. Do not build on existing mistakes, fix them first.

Step 4: Decide on Recurring Revenue 

Decide on your recurring revenue. Recurring revenue is revenue that you can build that will come in consistently every week, month or year. Recurring revenue can be built up and enable your business to grow.

Step 5: Decide on Big Revenue Items

Decide on your big revenue items. What can you offer than can bring in more income, more quickly? This kind of lump sum revenue can be used to boost your business through the ability to increase resources and marketing.

Step 6: Decide on Resources

Decide on your physical and people resources for the year.

Step 7: Do a Simple Projected Income Statement

Do a simple projected income statement. Start by listing your projected expenses and add them up. This will give you an idea of minimum Gross Profit you need to survive. This is not good enough. You need to make more than enough money to make profits and to reach your new monetary goals. Now set sales targets for your different revenue streams as represented by your different product or service offerings (including recurring revenue and big revenue items). Your sales targets should be enough to generate enough Gross Profit to cover your expenses and still leave you with a good Net Profit that reflects the monetary goals you set for yourself in Step 2.

Step 8: Buy Yourself any Required Time

Do you need to buy yourself time? Often big strategies require product or systems development before implementation in the marketplace and this takes time. If you need to buy yourself time and you can, then do so. If you can’t buy yourself time, then plan to work extra hours to get the development side done.

Step 9: Revisit and Modify

Keep an open mind. Revisit your strategy as you implement and see what is working and what isn’t working. Be prepared to modify your strategy and make corrections as you go. Generally speaking if something has a pattern of not working, it needs to change. If something works in your strategy for a while and then stops working, it needs to change.

Step 10: Don't Lose Heart

There will be tough times and there will good times in the year. As long as you are always in a state of planning, taking action, looking at where you are going right or wrong and making corrections, you are always on track as an entrepreneur.

About The Author

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  • http://www.entrepreneur.co.za Brian Walsh

    Great article. Well worth reading.