With 2020 behind us, now is the time to focus on what business owners can do to create growth in 2021. This year is still likely to have ups and downs as economies are still in recovery, but there are several strategies you can adopt to position your company for success.
Audit Your Expenses
It’s difficult to control your business’s revenue because customers ultimately make the purchasing decisions. But you can control what you spend on your business. This is where looking at your variable costs can help. Look at expenses such as sales commissions, labor costs, production materials, and utilities. If you have good relationships with vendors, those that value your business will be open to variable contracts in tough times because they won’t get paid at all if you go out of business because you can’t manage your expenses in tough times like a global pandemic. This can help you to improve cash flow.
Adapt to the New Normal
Life has certainly changed due to the pandemic, making it a good time to consider scaling-up opportunities. Of course, this is going to vary based on what area your business operates within. There are plenty of products and services that people still need, but how they buy them and interact with the companies has changed. The pandemic altered how people view value, and has accelerated innovations in e-commerce. Your business needs to be able to adapt to the new trends that are not just going to go away when the pandemic is over. It means giving your customers what they need in the way that they want it. A full review of your digitization strategies is needed to make sure you’re doing everything you can in the right way to best serve your customers, and so that you don’t fall behind your competitors.
Look at the Data
While insights can be found by looking at data that tracks past performance, think about how can you anticipate future performance based on certain key performance indicators (KPIs). You need to be able to look at all quantifiable data and track where the market is going in your sector to know where your company needs to pivot. Track KPIs such as average time for conversion, revenue growth, new contracts signed, inventory turnover, net profits, etc. Continue to monitor progress regularly to remain on the road to meeting your goals.
The pandemic changed the way many businesses and their staffs communicate. Less in-person contact is expected to remain a regular part of the way we work now, at least for some industries. In some sectors, staff members have shown to be more productive while working from home, changing the entire concept of working in an office. Maintaining communication is important in any company, and it needs to remain a priority regardless of how the manner of conducting business looks moving forward. Team members still need reassurances and, in some cases, routine communication in order to keep morale up and everything running smoothly. Bear in mind that the pandemic has made life difficult for everybody, and some people may need more support than others. A great way to motivate people is to make sure they understand the goals for the company and how they can play a part in achieving them.
Revisit Your Marketing Plan
The way we have done things prior to the pandemic may no longer be the relevant way. Consider planning in increments rather than trying to plan out the entire year, if possible. Make sure your digital strategies are optimized for the new normal. And don’t forget about the importance of metrics. If you need to work more efficiently, you will want to be able to track the performance of your marketing strategies, how they correlate to spending, and if they justify your return on investment.