Editor’s note: This article was first published in January 2013, for the start of 2013. It refers to reviewing 2012, the ongoing crisis and recession, marketing trends for 2013, and the community manager as a recently emerged role.
Most business owners are clear about what they need to do in 2013: sell more and spend less, cut costs and increase sales. That’s what has to be done, but we need to draw up a strategy, a plan, and ideally put it in writing so we can carry out each point and not let it slide.
1. Take a close look back at 2012
What worked in the company and what didn’t? Which strategies brought good results, and which ones cost me time and money?
2. Study your competitors thoroughly
Which companies are doing better than you? Which companies have gained ground on your own turf, and why? Why do customers buy from them instead of from you? There’s a lot we can learn from our competitors, both what to do (if it works for them) and what not to do (if they chose the wrong strategy). Now think about how you could improve to beat them.
3. Draw up a financial plan
Most small business owners make the mistake of not preparing an estimated budget for the whole year and not keeping a detailed record of business expenses. We need to plan carefully so that our business isn’t weakened during the times of year when sales drop. Knowing how much capital you’ll need in reserve for the lean months is essential to the financial plan, and if you have no way of building up those reserves, you can apply for a line of credit. You have to be ready for the slow months.
4. Renegotiate with suppliers
Now is the time to sit down with your suppliers and look for bigger discounts. You can explain that you want to follow a strategy to increase sales and that you’ll both come out ahead. Negotiating prices with your current supplier isn’t usually easy, but you can always listen to offers from new suppliers.
5. Cut costs
In a previous article we explained how to make our business more profitable, suggesting that you review the electrical system to install energy-saving light bulbs, use the most power-hungry machinery far more efficiently, and so on. And just as with our personal finances, we should take a look at insurance, phone contracts and office supplies. What’s more, if there’s anything in the company we don’t need and can sell, let’s sell it (unused cars, computers, furniture and so on).
6. Expansion
Perhaps the time has come to grow your business by opening up new channels or new markets. I know the situation isn’t easy because of the crisis, but any company that positions itself well in these times and manages to survive this recession will be well ahead once it ends (and some day it will). We’ve explained some advantages of starting a business in times of crisis: cheaper premises, products and salaries, more bargains, and many competitors closing down.
Big companies’ marketing strategies applied to our business
The other day I was looking at the marketing trends for 2013, which talked about creating value for our business through mobile or using gamification. Obviously, if we run a small bakery we’re not going to develop a mobile app to sell our products (or maybe we will, who knows).
But any business can apply other online marketing strategies, although for that, the first thing is…
7. Have an online presence
If your company still doesn’t have an online shop window, it’s time to think about it. I know many entrepreneurs think that, given their type of business or customer, they don’t need the internet to sell, and they’re right if that’s the kind of business and customer they want to keep. But if you want more customers, and the same kind of business with more sales, the internet helps. It’s just a matter of drawing up a specific strategy.
8. Social networks
Signing your business up to the various social networks is a way of letting people know about your business and your product. That way you can reach them with the special offers you run from time to time, but beware of spam (blowing your own trumpet), which is sometimes all it achieves.
9. Use inbound marketing
When it comes to attracting traffic to our website or online shop window, the simplest and easiest way is to pay for advertising campaigns (paid marketing). With the crisis, and with the recently emerged professional figure of the “community manager”, companies now invest in creating content so that potential customers interested in our sector end up on our website. Basically, this is called inbound marketing.
10. Local marketing
Since we’ve talked about getting better discounts from our suppliers, and that comes from buying more, start the year by preparing an aggressive marketing campaign that uses both traditional methods (leaflet drops and the local press) and technological ones (Google AdWords or similar), where we pay to reach only customers in the areas we want to target.
See also: Breaking Bad: 7 powerful business lessons
These points can serve as resolutions for your business in 2013.
Further reading
- How to increase sales at a business in crisis
- 5 tips to put your personal finances in order
- How to start a business with no money
- Mistakes to avoid when starting a business
- The 10 commandments for failing in business, guaranteed
Featured image: R Barraez D´Lucca, CC BY 2.0, via Flickr.
