With the year drawing to a close, now is a good time to look back and reflect on what your business has achieved over the past 12 months. Use these indicators to find out how 2006 was for you
- You have exceeded your sales targets for the year. Fulfilling existing sales contracts and possibly winning new clients has enabled you to exceed your forecasted sales in your business plan. Prepare for continued sales growth by refreshing your business plan for 2007.
- You have performed well against your competitors. You are staying ahead of competition in the marketplace because you are more efficient or have a unique selling point that differentiates your business. Carry out a benchmarking exercise by comparing your business performance with similar organisations, including price, customer service and range of goods and services available.
- You have increased your margins. An analysis of the products and services you offer will help you establish whether your business activity is more or less profitable than the year before. You have measured this by looking at sales figures on each product and service line to assess what is selling well and what is not.
- Debts are down and you have avoided excess borrowing. You have ended the year with less debt than you started with and have managed not to increase your borrowing on loans and overdrafts.
- You have reduced your business costs while continuing to meet the needs of your customers. You have cut costs on anything from consumables to office supplies and equipment by seeking favourable credit terms, negotiating with or changing suppliers, taking advantage of discounts and shopping around.
- You have made your business more efficient. A new payroll system, online shop or computer database has helped you streamline your business activity. Your efficiency has helped you raise productivity and is saving time for you to focus on other work.
- Customer numbers are up on 2005. You might have stayed on top of changing market trends, diversified your business or carried out a successful marketing campaign. Small firms that rely on a handful of customers are vulnerable, so the search for new clients should be part of your plan moving forward.
- Feedback has helped you improve your business. Customer input has helped you develop your business to meet their needs. Collate and look at the feedback for the year when putting your plan together for 2007.
- You have successfully marketed yourself and kept track of how customers hear about your business. A marketing drive has paid off with a measurable increase in sales. Customers in your target market have responded well to your direct marketing campaign, special-offer promotion or advertising. You may even have benefited from free publicity and word-of-mouth recommendations.
- You have introduced a new product line. If you have introduced a new product range or service that has had good sales, you are adapting well to cater for your market. Businesses cannot rely on the same products or services to keep them afloat indefinitely. Responding to shifting trends will help you to survive in the year ahead.
