2022: Start with a Strategy

Start with a Strategy

Jacqueline Hodges

Making a profit is a mark of your business’ success. You’re riding well, hitting the finish line, supporting your team, and bringing home the gold cup. But are you really successful? Are there elements in your business that are holding the reins back on your business, pulling profits down?

Understanding whether your business is successful and really finishing well is determined by reviewing your strategies and objectives. Having strategies is where you start. But a good leader understands the need to review and develop new strategies. And as we anticipate population immunity it is time to review your business strategies.

Yesterday, Today, Tomorrow

Your business survives by adapting in a world of constant change and continuous improvement. And the business environment can change unexpectedly. What you did yesterday, may not help your business survive today; think preCovid.

Today, we have become accustomed to living within the confines of our own home, and shopping online: think living in uncertainty. And what you are doing today may not be profitable tomorrow. What happens next; think herd immunity.

As we start to come out of this bubble with population immunity, how will your business change?

After starting The Cocktail Shop as a side-hustle in late 2018, entrepreneur Melissa How had all but given up when it had failed to fire 12 months later. But she found it difficult to give up entirely. After all The Cocktail Shop was her idea, her concept and her baby. Then came Covid-19. Melissa saw an opportunity to grow her idea into a true business and turned her mind to reengineering the marketing strategy.

People are creative adaptors who need to socialise. Melissa recognised that virtual happy hours and virtual cocktail parties would become popular during the lockdowns. By May 2020, sales on The Cockail Shop begin to take off. As a result, Melissa saw an opportunity to exploit the ways in which corporates needed to creatively engage with their staff, customers and investors. Sales soared. So much so, that the business has grown from that humble side-hustle to a team of five that is still growing to meet the increasing customer demand.

But once we have herd immunity, will that same online sales strategy be viable? Given the business’ reputation and Melissa’s commitment to product quality, customer service, and the relationships formed, those loyal customers will probably remain loyal. However, she may need to consider other sales strategies to continue to grow the business.

An experienced and serious business owner, Melissa is already turning her mind to tomorrow and developing new strategies to lay the foundations for the future success of the business.

7. Collaboration

Collaboration can lead to a beautiful partnering for events, improve sales, and even share costs. Look for partners that will fill a gap in your business offering. Find mentors for yourself and the team to expand your business capabilities and the team’s knowledge. Your strategy might be to find the right mentors.

8. Operation

You have got to understand the numbers, and the timing of the cash flows. When does the money come in and when does it go out.Establish operational policies, procedure and processes to ensure consistency across the business. Your strategy might be to learn some accounting fundamentals.

9.Innovation

Continuous improvement to stay ahead and relevant. When developing your product or service consider how it can be improved in thefuture and whether it should be scrapped after a certain time. Its no usemaking parts for X if X no longer exists. Your strategy might be to hold aweekly meeting address continuous improvement.

10. Technology

We are all in the cloud today and it is convenient. Focus on using current technology and analyse what’s in the market.The software you use today make not be the best option as the business grows. Develop and understand cybersecurity relevant to your business. Your strategy might be to conduct a six-monthly review on software requirements.

Of course these are broad concepts to get you started. You can drill down on each area to develop strategies that specifically align to your business. Following are some sales strategy examples that may be used to help start the thought processes.

- WIIFM Understand the What’s in it for me - Use social media to Increase online sales - Become a thought leader - Offer a product demonstration - Become a storyteller - Start with a small niche - Define the problem and outline the solution - Ask for referrals - Use free trials - Develop an Email Direct Marketing campaign

Do not forget you! As the leader of the business your personal welfare and satisfaction is paramount to business success. So add yourself to the strategic planning and always ask does this strategy feel right to you? For your business to grow and be successful, you need to be happy. Happy with the business, where it is, and where it is going.

Finally, be nimble. Remember the old saying “The early bird gets the worm”. Well that is true in business too! While you need a strategy,if you spend too much time developing it, you may lose the opportunity and competitive advantage. Be ready to pivot for 2022.

Jacqueline Hodges is a Chartered Accountant and Financial Adviser