New Year’s Resolutions for Small Businesses
If you are like 80 percent of Americans, you have made a New Year’s resolution. Although you have taken the time to think about how to better yourself in 2016, have you done the same for your small business? It is important for entrepreneurs to set goals for 2016 and map out how to achieve them. Start the year off right with these five New Year’s resolutions for small businesses.
It takes a lot of time and effort to attract a new customer, which is why recurring customers are the way to go. Recurring customers are great because you have already invested to acquire the customer and now you can reap a repeated return. If you are stuck with one-time buyers, take time in 2016 to engage potential customers who have the need and capacity to purchase repeatedly.
Businesses typically have two types of money – cash flow and profits. Cash flow keeps the lights on day-to-day, whereas profit goes toward long-term security and savings. This year focus on products and services that yield health profit margins, not just those that support short-term activity.
You have a direct communication channel with your customers via social media platforms, and it is often free. Having said that, digital marketing on social platforms has become pay-to-play, meaning that you should invest in promoted posts to effectively reach your followers. Likewise, dedicate funds in your marketing budget to Google AdWords.
Speaking of a marketing budget, you do have a one, right? Many small business owners overlook the crucial process of planning their businesses. Set aside time to write a business plan and create a concrete budget for the year (taking business development costs into account). This will also help you manage your money; especially if you stick to a regular evaluation process in which you review profit and loss, cash flow, and the aging of your accounts receivable and payable.
Small business owners fall into the trap of thinking that they have to be everything all the time. Although you are likely an expert in your business, that does not make you an expert of business, nor of all its complexities. If you find that you are taking on too many tasks that make you ineffective or inefficient, consider hiring a consultant or employee to take some of that work and let you focus on what you need to get done as the leader of your company.