This week I take you quickly through six factors to consider as part of a simple strategy to propel your success in the new year. #businessplan #competition #staffing #hiring #threatassessment
Do You Still Have a Competitive Advantage?
List your three biggest competitors. Write what they do. What are they known for? What do you do? Take a piece of paper. It should be four columns including your business and then you’re three competitors and list out what you all do well. You have to look at this objectively and see where you’re winning.
Every business needs to do this, a JC Penney, Sears, K-Mart…they should have done this and compared themselves against Walmart. They would have quickly seen that they’re fourth in every important category. They weren’t winning in price anymore, they weren’t winning in selection anymore, the weren’t winning in variety and selection and all that because Amazon took over.
Is Your USP Still Relevant to Your Target Customer?
This is why customers are going to buy from you. Why are they still buying from you and is it relevant? What was once relevant, may not matter anymore.
Look at Netflix, they’ve constantly evolved. Mailing out DVD was great, but then they pivoted to online streaming and then pivoted to creating their own content. There’s a constant pivot.
You need to change before you have to. So ask yourself about your unique selling position, does it still resonate? And if is it still relevant, who is your target customer?
How Could You Find 20% Growth in Revenue?
I constantly share this because if you grow 20% a year, you’ll turn your company over every five years. Something that was working five years ago may not work five years from now. Statistically, that’s what happens. It’s not creating the amount of revenue it used to. Well, if you add a revenue stream each year, you’re creating a very simple strategic plan to grow your business.
Perform a Detailed Review of Costs and Expenses
I do this a couple of times a year. I want to look at systematic costs and where can I renegotiate them. Where are we spending money? We have a digital marketing company where we’re constantly reviewing how we perform these services for less money and bring our costs down. Then we get greater margin. I own companies that are on two opposite ends of the spectrum, but we still do the same thing.
Review your costs, your ongoing expenses, and see where you can save money,
Where Could You Upgrade Your Staff
Look at sports. It’s only a couple of free agents that can be game changers. You have to look at it the same way in business. Your staff will get lazy if they don’t think you’re willing to replace them!
Constantly upgrade your staff. One hire could be a game changer. Perhaps you’d either have more sales or you’d have more efficient fulfillment, or they could take a tremendous headache off your shoulders. They could take a ton off of your burdens off your desk.
What three hires could you make to make it a championship team?
Threat Assessment
What could put you out of business in the next six months? Do you have a competitor that’s growing and becoming formidable…or is your USP becoming irrelevant? It’s not appealing anymore, and perhaps it’s unappealing to the point where you could go under.
Look how Chick-fil-A is pivoted. They don’t even need to do in-house dining anymore. They have mastered the drive-thru. They revamped those drive-thrus in two months. They revamped the one at my house with a massive overhang with heaters that blocks the sun and rain. They several people out there taking orders. They run a drive-thru better than any other fast-food restaurant on the planet. They’ve mastered it. They clearly viewed the pandemic as a potential threat assessment, pivoted, and solved it. Now they have a benefit in the amount of volume they’re doing right now.
