There is a saying that an arrow can only be shot forward by pulling it backwards. Likewise, your business can only propel forward if you take the time to pull back and look at the year past.
We are all in such a hurry to move ahead; we want more and we want it now. Wanting more isn’t the issue. Wanting more is great! The issue is, Do you know what “more” means?
If you are aiming for more sales in the new financial year, you must know what your sales were last financial year. Those sales should be broken down month by month at the very least. Mapping out what “more” looks like becomes a calculation based on reality and provides a benchmark to judge if you are making the right marketing decisions.
Wanting more customers is super — who doesn’t want that? However, before you go hunting, you should know how many customers (or clients) you had last financial year. What was each of those customers worth to you? Not every customer has the same value; attracting low value customers won’t help you business grow in the new financial year. You will find yourself working harder for no real gain.
So we know you want more sales and more customers, right? Before you aim for those goals, there are some important questions to ask yourself. Do you know the profit generated last financial year from the customers and the sales you had? Can you access your profit and loss report, and do you know how to interpret the information? What was your gross profit margin? What was your net profit margin? Could you improve upon those figures so you won’t need to go looking for more customers or more sales? When you find ways to increase your profit margin, you can boost your profits without taking on new business. Essentially, you will be doing the same amount of work for more money. Now that is a great goal to have.
Finally, let’s talk about marketing. What worked last financial year and what didn’t work? Where did you spend your money and what return did you see?
If you can’t answer these questions, now is the time to whip up a spreadsheet to track your results. Too many small business owners waste valuable dollars on marketing by having no idea what works and what doesn’t. If your marketing failed to produce any real results, you must go back to business basics. Who is your target market? What language do they use? Where are they most likely going to see your marketing? What solutions are they looking for and what is your call to action?
Don’t be afraid to look back. It can be scary. It can be uncomfortable but it is essential. Looking back can provide the vital information you need to make the new financial year your most successful one yet.
