8 Winning Business Strategies for 2023
So, there’s a lot going on in 2023. It’s true. But what do you do when macro-economic uncertainty creates a certain nervousness about the future? Do you retreat into your shell because all you see is risk? Or, do you get on with it because you recognise the opportunity?
Here’s 8 winning business strategies for 2023 that borrow a little from each basket and ALL of which are in your control.
1. Recover cash
Business owners around the world know that cash is the lifeblood of their operation. Having enough of it certainly creates that feeling of safety. So, before you think about injecting more cash, let’s work out where it’s all gone and recover as much cash as possible. The balance sheet holds the clue to knowing where it is and knowing what to do about it.
2. Plan to make a profit
Today’s profit is tomorrow’s cash. So, plan to make a profit! Too simple? Well, how many small business owners actually prepare a budget, let alone truly understanding their margins, their costs, the drivers of those costs and the variable or fixed nature of their cost-base? Not that many! But we know that businesses that plan achieve more than those that don’t.
3. Increase sales
More sales gives you a chance to make more money. I hear you screaming “More sales? I would if I could!” To you I say, “Of course you can, you just don’t know how.” That’s not intended to be arrogant, but if you knew how, you would have done it already – true? So, focus on the three ways you can increase sales. More customers, more transactions, higher prices. What would need to change in your business to set you up to achieve one, two or three of those things?
4. Improve efficiencies
Maximise what you’ve got. This might be as simple as ending waste, reducing rework through quality initiatives, or re-engineering a product or process to eliminate unnecessary steps.
5. Ask the bank for more money
To stop investing in your business is to take a conscious decision to go backwards. If you’re not prepared to do that, if you’re looking to invest into growth initiatives, you need to know you can fund them. Sometimes, asking the bank for more cash is the right thing to do. Yes, debt is more expensive today than it was a year ago but it’s almost always cheaper than equity. Capex is all about the return on investment, the timing of those returns and matching cash outflows (as nearly as you can) to the timing of the benefits that accrue from your investment.
6. Create accountability
Far too often, we see business owners paint themselves into a corner where everything falls to them. If you’re feeling like all the problems wash up on your doorstep, you can fix it. You need to delegate more. The first step is having the confidence to do it. Creating accountability (and reporting on accountabilities) at every level of your organisation is a good start. That way, if anything is going off the rails, you will know early enough to intervene. And a positive side-effect is that your team almost always step up. That sounds like a win-win.
7. Access government support
There are lots of government grants and incentives that go unclaimed. It blows us away that 70% of all eligible businesses do NOT claim the R&D tax incentive, as an example. So, knowing what you qualify for and going after it is a good way of boosting your cash resources. Head over to this page for more information https://business.gov.au/grants-and-programs?resultsNum=10
8. Get that winning feeling
Momentum is a funny thing – it’s harder to create than it is to keep it going and we know that mentality precedes momentum. A great business adviser can help you to create that momentum by removing the frustrating blockages that hold you back. Everyone likes to win, so, do the things that create that winning feeling across your team. Remove blockages. Say ‘thank you’ for a job well done. Broadcast your successes and watch the effort increase as the smiles reappear on faces around your entire organisation.
Get started today! If you need help to implement any of these strategies, or want to know more, reach out to BridgePoint Group today on 1300 656 141 or email firstname.lastname@example.org