Year after year, we see the same thing happen come 1st of January. New Year resolutions. Be that to lose weight, give up smoking, spend more time with the family or maybe make more money. For the first month, maybe even two months, you make an effort to do something about it; however, at the end of the day we are all creatures of habit. Our support group may not be the most encouraging and in many cases we end up slipping back into our old habits. Sound familiar?
There are many reasons why this happens, so let’s make it easy. For a second, picture where you want to be by the end of the year. How do you want your business to look? How many clients do you want to have? How much money do you want to have in the bank? What are your revenue targets? How much time do you want to be spending with your family?
Now, if you could make perfect decisions throughout the year to get you to where you want to go, what action would grant you the greatest leverage to drive you towards your target to make the biggest difference in 2015?
Perhaps it would be to improve your lead conversions or implement a new sales process. Maybe a change to pricing and packaging or getting your financials up to scratch and monitoring for greater management decisions? We business owners commonly experience overwhelm and use it as an excuse to avoid achieving our goals, so by following the below formula you are able to start stripping away the fat. Now that you know what you want to achieve and that ONE thing that will give you the biggest opportunity to reach that goal, it’s time to set a deadline. You will need to be specific and you’ll need to identify how you will know that you are on track to achieve your goal e.g. how will you measure it?
Say your goal is to get more money in the bank. It’s time to get specific. Let’s say you want to have $90,000 in the bank by 30 June. You now have a specific goal and deadline. You are going to do this by implementing a debtor management system alongside your Accountant and establish a cashflow forecast. You, along with your Accountant, will know you are on track by monitoring your cash position and forecast, your average debtor days and most easily, your cash at bank. This should be tracked regularly (i.e. monthly) and decisions can be made and questions asked based on your performance. When you have an accountability partner, you are substantially more likely to achieve your goals. They are there to inspire you, push you and challenge you. This is something we are really good at and our clients’ results are there to support it.
Get Started! If that means engaging an expert to help, so be it. If you can’t afford an expert, then your first goal needs to be improving cashflow. That usually means freeing up cashflow or increasing revenue…or both. If this is you, I’d love to help, so feel free to contact us for a chat.