Article by Dave Thomas
With 2012 right around the corner, many entrepreneurs are already thinking about how they can dial up more return on investment (ROI) in the New Year.
While 2011 has produced mixed results for millions of entrepreneurs, many of these same individuals are looking at what they want to accomplish in the coming year, how they will go about doing just that, what their resource requirements will be and how they can learn from this year’s mistakes to not repeat them moving forward.
If you have not already set all your goals in motion for the New Year or you have but have some questions regarding them, now is a perfect time to review the pending year and what needs to be accomplished in the next 12 months.
Among the things to look at are:
• Are your 2012 goals credible or just a shot in the dark? – The goals should be those that appear attainable given what many financial experts predict will still be challenging times in the months to come. Don’t set yourself up for disappointment and failure by setting unattainable goals. Work within the projections of your industry, your staff resources and most importantly, your budget;
• Industry projections – While no one entrepreneur can say with 100 percent certainty what 2012 will bring, it is important to take an overview of your respective industry to see what is being forecast. If the forecasts are for moderate to increased growth, then proceed accordingly. If the forecasts, however, are for limited to maybe even stagnant growth, proceed with caution. It is much better to go a little more on the conservative side and be pleasantly surprised than to be all systems forward and be thoroughly disappointed;
• Zero in on core competency – Put the prime focus on your known money makers. While it is good to want to expand your wings, you have to make sure your prime products and/or services continue to serve not only regular customers but attract potential customers. If you’re thinking of expand products and/or services, make sure your core items do not lose focus in the process;
• Properly price your products and/or services – Given that many consumers are having trouble making ends meet, be sure you don’t price yourself out of their business. If a number of your customers or potential ones are having monetary issues, consider that when setting the prices for 2012. Yes, you are here to make a profit, but what profit will you be making if you have less customers? As an example, the retail gas station that is selling gas for $4 on one street corner is potentially going to make more money than the retail station across the street who is selling the same product for $3.85. That being said, the station selling it at $3.85 can potentially make up the difference and then some by pulling in more customers attracted to the lower price;
• Review 2011 numbers and trends – It is important each and every year to look at how the past year went and what can be learned from it. Look for trends as far as when sales were at their highest and low points, how you did with your present staff levels, any trends regarding concerns and/or complaints from customers and so on. Always remember that the past serves as an educator for the future;
• Be prepared for the highs and lows – Very few companies can run the 52-week period from start to finish without some bumps along the way. Be prepared ahead of time on how you will handle the tougher parts of the year, including what actions will be needed if sales go into a prolonged slump etc. Most importantly, have contingency plans in place so that you and your staff can weather the storms;
• Embrace all aspects of the web – While it seems like a no-brainer, there are still many entrepreneurs who are not fully embracing all the Internet has to offer them. From social media to video and podcasts, make sure your business is utilizing all the various electronic tools. Social media can be looked at as perhaps the best in that it is essentially free, short of time and effort. Be sure that you maximize your Web site in all your marketing efforts to reach as many visitors, who are then hopefully turned into customers, as possible. If you have not already, be sure to review your Web site efforts so that it is at maximum capacity to be visited by search engines and in turn consumers. A well optimized Web site will quite simply add to your company’s bottom line, so what are you waiting for?
With uncertainty filling the minds of many entrepreneurs heading into 2012, those who have reviewed 2011 and previewed 2012 stand the best chance to reap the rewards.
About the Author:
Dave Thomas, who covers among other subjects’ workers compensation, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.
