I know it sounds like a cliche but…
Setting targets and monitoring your progress against the those targets does help keep your business on track!
What target should I use to help my business grow?
It is not rocket science I know but having a goal for your annual turnover, and splitting it down into months means that you have 12 chances to aim for a target which will improve your sales figure this year. Don’t just hope that the business will grow, you may need support to get where you want to go.
Have a look mid month and see if you need to make a huge push to get the work done this month, rather than letting the sales and the work spill into next month. Having this monthly target really focuses your mind each month which will keep you heading in the right direction.
Another benefit to logging your actual sales each month is that you can spot cycles in the data – for instance is October always your best month? Is January always your worst one? Knowing these trends can keep you planning ahead as you will know when to encourage the staff to take their holidays etc.
How else can I encourage growth?
Having a budget for marketing can also be a helpful tool. It is tempting in these difficult economic times to try and cut every budget but some simply have to be invested in! If you set a target of 5% of the income for the business being reinvested into marketing, you should continue to attract customers next year without the spending taking a dip or growing out of control.
Have a look at your marketing material with some of your friends and existing customers – they will give you ideas and suggestions that will help you to get that important message accross.
How often should I set targets?
We support business owners in setting their targets and it is best to have three levels in mind. You need a target for the next three months, a target for the year as a whole and then an idea of where you want the business to be in five years. These targets will merge with the goals you have your personal life, it is not possible to plan where your business is going clearly if you are not sure about the type of life you are building towards.
Setting the targets is the first step and then taking time to monitor whether your results are on track is just as important. Sitting down to set goals like they are new year’s resolutions and then forgetting about them will not bring the results you were hoping for.
Keep looking at the reports each month, keep logging the sales in comparison to the figure you were hoping for. By the end of 6 months you will feel like you have more of a handle on the business and its progress.
The software packages we all use for bookkeeping have all this information in, but if you need help getting the reports out get in touch with BW Bookkeeping.
