Let's make 2012 a successful year!

Many commentators are predicting 2012 could be a tough year for businesses. The economy doesn't seem to be rebounding as quickly as many thought it would and with much uncertainly in Europe there are a number of factors which call for caution.

However the sun will still come up each day and people will still get out of bed each day and go to work and spend the money they earn and the government is providing as much assistance as they can and so there will still be business to be done. Your challenge will be to be smart enough to ensure you get your share and be able to grow your business in 2012.

Let's look at a few tips on how you can make 2012 your most successful year yet.

You must have a plan

As the old saying goes, if you don't know where you're going then any road will get you there. What are you goals for this year? Where do you want to be in 12 months time? How are you going to get there? Prepare a financial cashflow forecast for the next 12 months and calculate how much drawings you need for yourself, how much debt you are going to repay this year, how much you're going to spend on wages, advertising, capital expenditure, motor expenses etc etc. Then from that you can calculate what your Gross Profit needs to be to cover these outgoings. Then based on your gross profit percentage margin or mark-up you can work out how much sales you need to get to keep your business afloat. You might get a fright as to how much sales you need. Maybe it's unrealistic and you need to go back and start trimming some of your outgoings. Be realistic and honest with yourself. There's no point in getting half way through the year and you find you're broke when you could have prepared yourself at the start of the year. Also be careful with any new debt you take on this year 'don't over commit yourself and make sure you can afford the repayments.

Monitor your growth through the year

Putting a plan in place is great but you must monitor your progress as you go through the year. Are your sales ahead or behind budget? Are your expenses getting out of control through frivolous spending? Are your drawings too high?

Be honest and address these problems with corrective measure before they get out of control.

Look for growth industries

Right now the Agricultural industry is very buoyant. Construction and tourism is rather flat. So what can you sell to the agricultural industry? Consider the way the population is aging over the next decade. Is there some product/service you can provide to the older population? Diversify ' look for new products or services that compliment what you are already selling.

Surround yourself with successful people

Success breeds success. Don't be afraid to engage the services of the best in the game. The results will always be better than trying to do things yourselves when you really don't know how to do it. Take graphic designing. You can always tell the difference between a homemade brochure, business card, letterhead and those that have been professionally designed.

Upskill your staff and set new standards

Don't be afraid to invest in your people. They will respond to training you provide and the results will flow in better service and products to your customers. Set new levels of customer service that you and your employees are to abide by. Put these standards in writing so everyone is clear as to what is expected of them. So for example set a standard that the phone must be answered within 2 rings, a customer going into your shop must be greeted without 10 seconds, your work van must be cleaned inside and out every week. And believe me, your customers will notice even though they may never say so.

Lead by example

You as the business owner/manager must lead by example. The man/woman at the top will set the tone to the entire organization. If you're sloppily dressed so will your staff be. If you're rough and have a careless attitude, this will rub off onto your staff. But if you're always smartly dressed, get to work on time, keep your desk/department neat and tidy, always friendly and happy to other staff and customers, always willing to go the extra mile for your customers then this attitude will flow through your entire organization and make a huge difference to the successful feel of your business. To some it comes easily, others need to work on this feature constantly.

Review your suppliers

Are you getting the best deal from your suppliers? Have you asked them lately for better prices? Have you asked for a decent discount if you pay for your goods on order? Can they put a new range of stock into your shop on consignment? This will help broaden your appeal and the number of customers who may buy form you. Don't forget that many wholesalers are struggling to get sales as well and so you won't know what they can offer you until you ask.

Monitor your advertising

Is your advertising working for you? How do you know? Have you got statistics that can show which form of marketing actually works? Try something different. Many businesses spend thousands of dollars on advertising that doesn't work. Ask your customers that buy from you 'How did you find out about us?' 'Why do you shop with us? Write down the answers and then analyse them and look for trends as to why people are going to your business. Look for clues as to where and how you can attract more of these people. And if your advertising isn't working stop it immediately.

Remember the golden rules of customer service

The golden rules of customer service are Rule No. 1 The customer is always right. Rule No. 2 If the customer is ever wrong refer to rule no. 1

All of your employees must know these golden rules. Do everything you can to keep a customer happy because customers are the life of a business and they're the ones that will keep on coming back time after time after time for many years to come and you are totally dependent on them to make your business a success.

Commit yourself to no extra spending

One of the most common mistakes we see with small businesses is the way the owner over-indulges in his or her drawings. Set yourself a fixed amount to take home each week and stick to it. Be really strong with yourself as this mistake is often the result of many business failures

Get your tax returns done on time, every time

Make this a top priority. Late filing penalties and interest is a total waste of your money and is totally unnecessary. Get your books to your accountant as soon as you can so they can be prepared and filed to IRD on time. And if you're struggling to pay your tax, get an arrangement set up with IRD to pay the tax off as fast as you are able. IRD has an amazingly good service team which will allow you to pay your taxes off if you can get it paid in full on time. The same applies with your Income Tax. If you find those 3 Provisional tax payments each year just too hard to save up for, then set up a weekly automatic payment and pay your tax that way. It's a far easier way to keep on top of your tax.

Stay positive, keep smiling, be honest

Your attitude is key to your success. Do you want to make a go if it or not? How do you see the glass? Half full or half empty?

Positivity is a powerful force even when you don't know however you're going to manage underneath. And keep smiling. And be honest with yourself, your employees and your customers.

And finally, don't be afraid to out your prices up!

All the best for 2012.

Monthly Business Growth Tips Disclaimer

Important: We cannot be held liable should Clients act solely on the basis of the material contained in the Monthly Business Growth Tips. Items herein are general comments only and do not constitute nor convey advice per se. The Monthly Business Growth Tips are issued as helpful guides to our clients. We cannot guarantee that your business will grow if you follow the guide of the Monthly Business Growth Tips as many other factors that can lead to decline are not necessarily influenced by making one change to the way your business operates.