Edition 455 – Wrapping Up

So, with a week to go before Christmas, it’s time to reflect on the year that was, what’s working in some businesses and what’s not working in others.

1. Marketing – with all of the focus around the use of social media, and the impact of AI, I continue to see the most successful businesses are those where they’re building, maintaining and enhancing relationships with their client base. The old fashioned “let’s catch up for coffee” is understated in the modern world.
2. Numbers – those that update them regularly, then analyse them, have the ability to correct anything heading off course, in real time. Those that don’t, often face choppier waters than they need to.
3. Cashflow – is more important than ever. People tend to look at their expenses when things get tight. However, what’s not in the Profit & Loss Statement, and which significantly impacts cash in your business, are two things – one, paying cash for assets, that would otherwise best be funded by borrowing – and director’s drawings. The latter is a massive sleeper in a number of businesses.
4. People management – continues to be one of the top two issues inside small and family business and there’s been a number of businesses, this year, where they’ve been derailed by employee issues. My first tip is to address employee performance early, and don’t let it fester. The second tip – engage in an ongoing process of consultation with your team. Only giving them feedback, when the wheels fall off, and not offering praise and support, when they’re trying their best, leads to a culture of “we’re only noticed, when something bad happens” in the business.
5. It’s not the economy, or interest rates, or the cost of living. Why some businesses are flourishing, and others aren’t, is often a reflection of the people right at the top. If that’s you, look in the mirror and take stock of what’s happening. Better still, invite someone you know, and trust, to give you an honest appraisal of what they see in your business, and in you.
6. There are fields of diamonds, inside every business. Yet, too many business owners have golden opportunities staring them in the face, but either don’t see it, or do see it and don’t commit to it. Business doesn’t have to be hard – so why not capitalise on what works, rather than what’s bright and shiny?
7. Strategy is crucial in terms of setting the direction for your business, and the success of your family. If you take the time to look 1, 3 and 5 years into the future, you might realise there are opportunities you’re missing, or tsunamis of change ready to hit your industry, that you’re completely unprepared for.
8. If something isn’t working inside your business, pull it apart and find out why. With so much data available inside of financial and non-financial systems these days, those that not only have a gut feel about something, but take that one step further to analyse the performance of a product, or a team, or a division, are making interesting discoveries about their business – and that some problems have been lurking for much longer than first thought.

From our family to yours, no matter what you celebrate at this time of year, may you enjoy this time with loved ones and friends, in the spirit of the season, and enjoy a restful break prior to an exciting 2025. 

This Week’s Tip

“Regenerate the batteries – 2025 is going to be an interesting year.”