The start of a new year can be filled with a sense of optimism about what's to come, but for some entrepreneurs it can also be a time of high anxiety, not knowing what might happen in the months ahead. This year will surely bring a few surprises, but you don't have to wait and be reactive. Building a strong business means being proactive and building resiliency, establishing the systems and processes that allow for problem-solving, adaptation and ongoing change. The list below contains a few best practices to consider implementing for a stronger business that can adapt to whatever life throws at it.
Develop a strategic plan
Sure, the pace of change in today's market makes planning difficult. But without a plan, business owners are stuck in reaction mode. With a good strategic plan, shifting in the face of change becomes a how question rather than a what question. That is, instead of, "What are we going to do?" an owner can remain focused on "How are we going to achieve what we planned?" If you don't have a strategic plan, it's time to get one. If you already have a plan, keep it updated to account for changes in your finances, your business goals or your market.
Establish an advisory board
Wouldn't it be great to have a group of trusted advisers dedicated to helping you make better business decisions and refine your long-term goals? An advisory board could consist of as few as two to four or as many as 10-15 members, paid or unpaid, each with a beneficial background or specialty. An advisory board is a proven way to get valuable advice on running your business at a low cost. Yet, few entrepreneurs have one. Consider whose advice you trust, and who can bring skills and perspective that would benefit your business.
Project your financial results
Cash-flow projections help ensure you have the money you need to meet your expenses and achieve your goals. Estimate your cash intake and outflow each month. Now, track your cash flow as the year unfolds and make adjustments to keep your business on target. If you get off-track, you'll know sooner and can analyze why and adjust. Projections can be done in a simple spreadsheet.
Practice time management
It's essential for entrepreneurs (and everyone, really) to organize their days and make sure they're doing the right things at the right time. Use your calendar to block time for daily, weekly, monthly and quarterly tasks you need to complete. Good time management also prevents over-committing and burnout. Put everything on your calendar to ensure you've allocated time for all your important business and personal tasks. When over-commitment threatens, let your calendar be your alibi for what you've already committed to, or adjust as needed.
Embrace AI
Simple AI enhancements can boost your productivity and capacity to innovate. You can use AI tools to analyze data, do research, chat with customers, improve your communication and create marketing content. AI output still needs a human touch to validate findings, quality-check results and guard against potential bias, but the productivity gains can be realized for basic tasks with minimal risk.
Document your processes
Many owners keep critical knowledge about business operations inside their own head. As your company grows, this creates bottlenecks, as well as the risk of your company falling apart if something should limit your ability to be at work. Get the important knowledge out of your head and documented on paper in the form of standardized, repeatable and trainable procedures.
Clean up your space
A cluttered, messy or dilapidated space creates a bad environment for both customers and employees, and signals that deeper problems are likely happening. So get your act together and clean up. A clean workplace means things are running well and often leads to increased productivity and an empowered team ready to tackle other improvements. Cleaning up and performing repairs can also be good team-building activities.
Manage your team's performance
Performance-management tools encourage open dialogue, employee engagement and goal achievement. Talking about performance with your staff on a regular basis also gives you the chance to say things like "good job" and "thank you." Finally, performance management helps you to identify up-and-coming talent, clarify training needs, shape succession plans and help make more objective compensation decisions.
Don't try to make sweeping changes all at once. Implement one idea from this list, and when you've mastered it, come back for another one. With these processes for managing your goals, decisions, finances, time and people, you'll be ready to face whatever challenges lie ahead this year and beyond.
