It has been a tough year for small business 2012. Actually, it wasn't just 2012, we can include 2011, 2010 and 2009 in that too can't we?
In Australia, superannuation and GST have crippled thousands of small businesses. In the USA the government is increasing taxes in 2013, in addition panic looms over the fiscal cliff. Times are going to remain tough. This leaves small business owners with two decisions - either stay in business and adjust your business model, or return to the workforce.
Should your decision be to remain a business owner, 2013 must be the year you adjust your business model and start producing profits again. Not small profits either, substantial wealth creating profits. The following targets are going to create profit in your business. You will be celebrating at the end of 2013, so get reading then start making changes.
STEPS TO BUSINESS PROFIT IN 2013
1. Create a Cash Flow Budget/Forecast
Do not try and tell me you know exactly what is due and when. That the numbers are in your head. In my 15 years of working with small business owners I have never seen this method succeed. A cashflow budget is the VITAL FIRST STEP to improving your business profit. Your Cashflow should be 12 weeks in advance, from today until 12 weeks time, with income and expenses/payments listed every week. Here is a link to a free template to get you started. My advice? Seek help on this one if it is not your forte.
2. Do not spend on marketing unless you are measuring the result
I have mentioned this before, but quite simply this is a point I feel is far too important to leave out. Unless you are intending to measure your marketing results (i.e how many people responded to that particular campaign and how many sales were generated), then spending thousands of dollars on marketing is a waste of time. Spend your money wisely on a strategy you know works, or minimal funds to test a strategy.
3. Create an Online Marketing Strategy
I do not care what industry you are in. Trades, Legal, Retail, Beauty - online marketing is essential for every business. Included must be a simple but effective website, online business directory listings and Google Places registration. Here is a free Online Marketing Strategy template link from 2011. Applicable for any year.
4. Create a Social Media Strategy
My comments from above apply here. It simply does not matter what sort of business you operate, every business must engage in social media or risk closing by 2014. Do not assume your clients do not use social media, do not assume your customers only use one social network. Pick 3 social networks and get active now. Promote your business, interact with fans/followers, keep up with industry changes. There is a whole world out there waiting for your business. Here is a link to a Social Media Planning Template. My advice? If Social Media is not familiar to you then seek assistance, get it right from the start as the results will astound you.
5. Assess Your Target Market
Do you know who your ideal customer is? The age, sex, location? If the answer is no you have work to do. Sit down and think about the answers then market to the right customers. If you know who your target market is, make it your mission to network with these people and build your profile as an expert in your industry. This can be done online or offline.
6. Know Your Sales Targets
Write down how much money you want to make each week. Include enough to cover your expenses AND a 10% profit. For 3 months you must assess this figure mid week and work out how extra much you must earn to reach your goal. Contact clients, offer deals, sell excess stock, do what you can to make sure you reach that target every week. It IS possible! Make it happen!
7. Open a Separate Bank Account for Tax Liabilities
I shall refer to Australian tax obligations, however the premise is just as relevant globally. Each month/quarter/year in Australia a business has tax liabilities. PAYG, GST and Superannuation. Every week, calculate how much you charged in GST, how much you paid in GST, what you withheld in PAYG (payroll tax), and how much superannuation you applied to wages. Take that money and deposit it to your tax bank account. This will ensure tax time is not a burden.
Should any of the above steps be out of your realm of expertise then seek help, do your own research or offer to barter your own services in turn for assistance. Your business (and bank account) will thank you.
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