As the calendar year comes to completion, many businesses are looking to just survive the Christmas crush and get through to the downtime usually associated with a Christmas and New Year period. World class businesses not only manage their time and energy through to the break effectively, they also use it as a time to reflect on how their business performed through the year.
How do you know if your business was a winner or a loser during the year? And when I say the word loser, I meant losing the game! You see if you treat business a game and have a number of measurements in place to determine whether your business was on track or off track throughout the year it will be quite simple to tell. This could be any of the following:
• Number of completed jobs at a certain value
• Meeting gross profit targets
• Customer satisfaction score
• Overall net profitability for the business
• Employee retention
• Cash in bank after meeting current expenses
• Improvement in balance sheet ratio
These are simple scores that solid business keep track of regularly. On top of this a quick review process should be completed so that you can finalise in your mind how the business performed while looking at setting the following calendar year up for success. Below is a simple process that you can follow.
Triple R (Review, Reflect, Respond)
– Ask the following three questions:
What worked/what wins did we have? – Look at all the areas of the business where you made progress, achieved certain outcomes or succeeded in fulfilling initial goals.
What was missing/did not work? – Have a look at all the areas that caused you challenges, frustrations, or you felt that you had major inconveniences, and what was missing that if it was present would have made a difference.
If you can rewind the year, knowing what you now know, what would you do differently? – Hindsight is a wonderful thing and if you take on your learning through the year and being able to apply them mentally has you positioned to take advantage of your future situation.
How did you perform as a business owner? How was your leadership? In all the roles that you play how would you rate your performance and what opportunities do you have for improvement moving forward?
Looking forward into the new year, how will you apply your learnings to take a new or different action and ensure that your business is in an even better position in 12 months time.
Applying the above is the difference between running a business by default or by design. Default is where you have a break at Christmas, kick-off into the new year and really just replay the same year that you have had. Design is where you learn from the year and apply your learnings and increased awareness to the future and design an even better outcome.
For more tools and information on how to design an even better business contact the team at PROTRADE United at 1300-767774 or PROTRADEUnited.com.au.