Moving Your Business from Potential to Profitability in 2013
Entrepreneurs – as you think about your business plan for 2013, consider the following questions:
- Did your gross receipts exceed the level of effort and resources put in the business in 2012? (This answer indicates whether you have a business, per IRS standards, or just a hobby)
- Are you aware of the substantial changes in your industry that will impact your business next year? (This includes new technologies, new competitors, new laws, etc.)
- If Business Growth is one of your goals for 2013, have you already figured out what will be the “RIGHT” type of growth? (i.e. not just more clients, but the clients with whom you will have continuous sales next year)
- If you are a Coach or Speaker, what “new” insights, services or products do you plan to bring to your clients or audiences next year? (In other words, what will make you stand apart from all the others in your field?)
As a solo entrepreneur or a small business owner, you may have the “potential” to make millions, but if you have not mapped out a strategy for addressing issues such as the ones listed above, increasing your profitability in 2013 is unlikely. Your business plan outlines your business structure, but a solid strategy is the bridge to get you to your destination.
As entrepreneurs, we must relentlessly pursue our highest level of potential in business. Utilizing our full potential empowers us to serve the world with our unique gifts and talents, while being compensated accordingly for doing so. I believe that every entrepreneur should strive for extraordinary success. If you know the precise destination in which you’d like to take your company, then you have a definite target for which to aim.
First, let’s look at why you need a strategy and not just a business plan:
- Business plans are essential to have, but they are used primarily to start a business, obtain funding, or direct ongoing operations
- A strategic plan is used to provide focus, direction and action in order to move your business from where it is now to where you want to go
- A strategic plan is critical for prioritizing your three most valuable, but limited resources (time, talent and capital) to grow the revenue and increase the return on investment
- A strategic plan focuses on building a sustainable competitive advantage and is futuristic in nature
Strategy helps you make clear and conscious choices about the direction of your company in relation to what’s happening in the dynamic business environment. Armed with strategic knowledge, you’re in a much better position to respond proactively to a changing environment.
Second, let’s review some of the fine points and benefits of small business strategy:
- To establish a unique value proposition as compared to your competitors
- To enable you to do the RIGHT things at the RIGHT time
- To identify the tradeoffs and clarify what you should not do
- To focus on activities that fit together and reinforce each other
- To execute your business plan in a way that provides distinct and tailored value to customers
Third, strategic planning is the most effective way to “position” your solo venture or small business for success and profitability. Positioning helps you align your business activities with the goals that you have set and it helps differentiate your products and services from others in the mind of the consumer. If you think positioning your business strategically is an easy task, consider the following senarios:
- The owner of a local bakery wants to remain small and local, but needs to increase profits. How should the owner adjust and align all business activities, including operations, inventory, marketing and customer service in order to achieve these goals in 2013?
- A clothing designer wants to position her business to grow into a much bigger regional or national company in 2013. In what way would she need to adjust operations and inventory to cater to a broader client base? How will the owner develop the distribution channels needed to achieve this goal? How much will she need to invest initially – before profits?
- A Health & Wellness Coach has been planning to launch a new suite of wellness products in 2013. She just found out that another contender in the market is also launching a similar suite of products with a sophisticated online portal at a much lower rate. The competitor is also positioning themselves to become a player in the healthcare exchange market in 2014. How should this Coach adjust her go-to-market strategy?
These are actal strategy senarios from three of my current clients. As you can see, developing a profitable and competitive strategy is much more complex than just putting together a business plan. You have to know the direction you want your company or solo venture to take, understand how to position yourself, and align the various elements of your enterprise with that directional goal. This avoids wasting time and effort on activities that don't add to your bottom line.
I realize that it’s not easy, so I want to help you develop a solid Game Plan for your business in 2013. Because I want you to succeed, you don’t have to work through this process alone. Joined by two other phenomenal business coaches (Chloe Taylor Brown and Cheryl Budden Earls), we have scheduled two workshops in an effort to coach and train you in the development of your “2013 Strategic Play Book”!
Follow the link below to find out more about the Strategic Coaching Workshops that I'll be offering in December, with Chloe Taylor Brown and Cheryl Budden Earls! Armed with the right strategy, you can Rock 2013 and drastically increase your profitability!
Click Here To Get Started with the 2013 Small Business Prosperity Challenge Today: www.moniquestoner.com/2013-prosperity-challenge. It's totally FREE & there's no obligation.
Also, for additional 2013 Business Planning Tips, read my Five Steps to Business Success in 2013 article - http://www.moniquestoner.com/five-steps-to-business-success-in-2013/
