10 Tactics for a more successful 2011

I am reproducing an interesting article I found on BDC.ca
http://www.bdc.ca/en/advice_centre/articles/Pages/10_tips_to_meet_success_in_2011.aspx

Enjoy the reading...


If you’ve ever made a New Year’s resolution that lasted all of one day, you know making positive life changes is tough. For time-pressed entrepreneurs, the challenge of making changes in their business can be equally or even more daunting.


Financial Post columnist Rick Spence has referred to the problem as “entrepreneur inertia” — the tendency of business owners to not follow through on good ideas. Consultants are all too familiar with the phenomenon: they spend long hours with entrepreneur clients fine-tuning a strategic or marketing plan only to find out a few months later that the document has sat on a shelf.

Whether entrepreneurs are any worse than your average mortal is a matter for debate. However, there is no doubt that one way to combat the problem is to start small and build momentum for bigger changes.

Here are 10 tactics you can do right away to set your company up for a more prosperous 2011.


1. Call your banker — Regardless of whether you’re in the market for a loan or not, it’s a good policy to keep in touch with your banker. Build trust and credibility by keeping your banker up to date on developments in the business including realistic short and long-term cash flow projections. That kind of transparency can make all the difference when your business hits a bump in the road and you need some leeway.

2. Develop a cash-flow planner — Using a software tool or a simple spreadsheet, take an hour and record your month-opening bank account balance and all anticipated cash inflows and outflows. Then, each day for 30 days, track your cash as it comes in and goes out. Once you’ve done it for a month, you’re on your way to developing a healthy habit. Your cash-flow planner will help you stay on top of problems and make adjustments, such as delaying discretionary payments.

3. Follow the ABCDs of improving your marketing — BDC marketing consultant Jennifer Galley says her top marketing tip for entrepreneurs is ABCD—Always Be Communicating your Difference. It’s a simple acronym, but critically important to marketing success. A company should consistently express the unique value of its offering as part of every marketing tactic. “In my consulting experience, many companies have a real challenge in understanding and expressing their ABCDs, no matter what industry they're in,” says Galley, who advises clients in Vancouver. “I have also consistently seen that those entrepreneurs who put the time and effort into doing it right generate significant market impact.” So, figure out what your company’s “secret sauce” is and then push it relentlessly.

4. Get started on a tech makeover — Many entrepreneurs find technology to be a costly and confusing pain in the neck. But information and communications technologies can be a key to more efficiency, growth and profits. So figure out how you can make better use of technology in your business by starting with an inventory of your current systems. Then, list problems and opportunities in line with your strategic plan. Before investing, make sure you get some guidance from an independent tech expert on your needs and take the time to request detailed proposals from a number of vendors.

5. Focus on your team — Your most valuable resource is your people and no one is too far down the line to provide meaningful input. One method is to focus your team on the biggest challenge you are facing each week. In your weekly staff meeting, ask everyone for their ideas on how to meet the challenge and what their contribution will be. Create a timeline and make the goals and responsibilities visible, for example on a flipchart in the staff room. Everyone will feel included and will remain focused on the company’s highest priorities.

6. Crown cash as king — Getting cash in the door faster is critical for your firm’s financial health. You should have a policy on payment terms and enforce it diligently on slow pokes. You can also consider rewarding fast-paying customers with a small discount. On the other hand, trusted suppliers can help your cash flow by extending payment terms. But it’s important to be the kind of customer you like to do business with. Protect your relationships with suppliers and your reputation by paying your bills on time.

7. Eliminate your worst customers — The customer is always right or so the old saw goes. In reality, smart entrepreneurs know that problem cases – the last-minute demanders, the constant complainers, the slow payers — often aren’t worth the expense and stress. Other customers may not fit into the segment you’re going after. If you can afford it, free them to patronize (or antagonize) another company and you will liberating yourself and your team up to improve service to your preferred customers while working on getting more just like them.

8. Bury your dead stock — Excess inventory is a drag on your cash. It may be painful, but it’s time to face up to facts and get aggressive in marking down and clearing the stuff out. You’ll feel better when it’s nothing but a memory and some cash in your bank account. Consider offering dead stock at a reduced price in combination with a purchase of a new product as a win-win for you and your customer.

9. Organize a sports day for your employees — There are many ways to encourage employee engagement. One fun idea is to organize a sports day where employees can build team spirit in a non-work environment. Make sure to get workers involved in organizing the event and offer a variety of activities to appeal to different interests and fitness levels including something light and relaxing for those who aren’t into sports. You can wrap things up with a shared meal.

10. Get clear for a new year — Many successful companies make business planning an annual activity. It gives management a chance to work on the business and to re-focus on strategies that deliver long-term growth. If you do not have a business or strategic plan then it is time to create one. Be clear on what your core business is and why customers will choose to buy from you.