7 things to do in your small business before 2021

There is no doubt that the current situation is out of our control, factors that affect our businesses will continue to change, and yet businesses need to survive and decisions have to be made. So, let's focus on the things we can control and whenever you get some quiet time either over the next couple of days, or in that between Christmas/New Year lull, here are my key things to get your small business ‘New Year’ ready.

How has the past year been? Financial performance has rightly dominated our thoughts this year with many businesses struggling just to survive the coming months, however to sustain your business, and yourself, over the long term it’s also important to take a 'balanced scorecard' approach. Reviewing your business in these four key areas.

Finance – Chances are that your 2020 budget was thrown out of the window, however it is useful to understand the actual performance compared to your original or revised budget, split down by product/service, by month, by employee - whatever data allows you to understand the impact of varying factors on the business financial performance overall. How were costs compared to budget, showing the overall impact on overall profitability but also the profit by product/service. 

Learning & growth – Change has been almost constant, with businesses of all sizes adapting faster than ever before. How has your business moved forwards developing or acquiring new products or services? Are you harnessing the opportunities in new technology, from your business processes, sales & marketing to your product/service offers?

Customer perspective – Are you still meeting your customer needs? Are they happy? Are they loyal and, importantly do they refer others to you? Do you understand how their wants & needs may evolve next year? 

Personal well-being – How are you, I mean really? The highs and lows of running a business have been tested to the maximum this year and this can take a personal toll on our own well-being and that of our employees. Changes to working patterns, times places and teams should be considered in regard to long term well-being

As Tony Hsieh (Zappos) says “you can’t deliver good service from unhappy employees .” – and that includes you.

For anyone familiar with Kaplan & Norton's scorecard model, forgive my replacing Internal processes with the personal well-being, as the business owner without some focus on taking care of yourself the business may become unsustainable.

As Jane Keogh (Positive mind & Success coach) would say 'you have to have your own oxygen mask in place before you can help anybody else'. You can read more here from Jane in her blog - Acknowledging your journey www.janekeogh.co.uk/blog/54-acknowledge-the-journey-2

With things changing so rapidly it can be tempting to not plan, after all what is the point. Yet a plan is  necessary to avoid stagnation, cruising along until things improve - think back to last march, did we ever believe that we would still be in lockdowns by now! - we can't wait.

You will need to make some assumptions, based on your performance of 2020 in the different stages of lockdown, what do you predict for the next 30, 60 or 90 days - what level of business would you achieve on that basis.

Consider different scenarios - what differing plans could be put in place to respond.

Based on your review and predictions, set goals in these four ‘scorecard’ areas. Then scope out the work to be done or changes to be made, including who is going to do it and when.

Share your future plans with your accountant, from changes to staff numbers or moving premises make use of their expertise on the best way to set up your finances and structure your business assets.

It's important to be realistic however there is no reason not to be ambitious.

Get out that 2021 diary and schedule regular time slots to work on your business; monitoring progress and adjusting the plan.

OK I know this is a painful one and most business owners worry that increasing prices could make customers leave. Yet, the purpose of a business to make a profit and if prices don’t go up, at least in line with inflation, you will be, in effect making less than last year.

Key things to consider here are:

• Will your own costs increase (check any supply contracts, particularly in light of any BREXIT impact) and if so by how much?

• When was the last time you increased your prices? What was the justification?

• What changes have you implemented within the business in the past year that has added to/improved the customer experience or service provided?
  

If you are going to increase your prices then be organised. Consider the best way to communicate to all customers explaining what the increase will be, why prices are going up and when this will take effect.

Customers hate stealth increases .

Be upfront and open, if your customers value your product/service then a reasonable increase should not damage that relationship.

You can find more detailed advice here on How to raise & lower your prices from Entreprenuer.com

You work hard to provide amazing products and services to your customers and you trust that, in turn they will refer you to others if the opportunity should arise. Yet, as @ mlaplantedube points out " Referrals only happen out of the good of a customer's heart some of the time -- for the rest of it, giving customers a reason to refer will work wonders ".

Creating a referral scheme gives your customers both the incentive and, importantly a simple and effective way to refer you to others.

A customer referral is hugely valuable, not only low cost in terms of marketing and sales but there is a significantly higher chance of conversion to sale.

A referral scheme can also offer a great opportunity for customer retention if you include a incentive (discount, credit, bonus) to your existing customer it can encourage future sales.

You could also offer the scheme to customers who have worked with you in the past, providing a valuable opportunity to get back in touch that may rekindle your business relationship.

Before you embark on a referral scheme you need to be clear about your goals and establish a process for promoting,capturing and tracking any referrals, to ensure it really has a positive impact on your business.

You can find a step by step guide to setting up your own referral scheme here blog.hubspot.com/service/customer-referral-program

Unless you have a retail premises, your website is basically your shop window. Often it's the first impression that potential customers get of your business - Is it still up to date and looking active? Whilst you may not need a major overhaul, perhaps it’s time for a refresh. Simple updates can include

• Changing photographs and/or adding video

• Adding recent testimonials

• Updating the news sections

• Creating some new content for your blog to release over the next couple of months.
  

This doesn’t have to be a big gesture but make it personal. A hand-written card, noting something you have achieved together this year, or that you are looking forward to next year, can make all the difference.

If you are giving gifts, don’t simply order 20 bottles of wine, even for the one you know doesn’t drink. It is far more valuable to give something relative to your relationship or that offers an opportunity to enhance it. (Think local products or even a book)

You know who they are from suppliers to collaborators, mentors, friends and family – the ones who kept you going in the toughest of times. Now is the season to show them how important they are and to keep them in your corner for the year ahead.

Then close your laptop, mute your social media and, to quote Mark from Love Actually ‘Enough, enough now’ (sorry but it is Christmas) – take some time off.

Janet Doran , works as a Strategic Business Coach across North Yorkshire, UK. enabling small business owners in creative and professional service industries to win in competitive markets.

Find out more at www.thepositivepen.co.uk or call 07505 120051

I post daily, information/inspiration for small business owners, on twitter @ thepositivepen

One of the key benefits business owners get from working with a coach is that ‘protected’ time to work on the business instead of it in. If you are thinking about working with a business coach in 2021 please get in touch.