What feels like the end is often the beginning!
WELCOME to a series of articles where I focus on next year being a year of success.
To begin our journey of success we have started by looking back on this year, 2022, and identifying what we have learned and what we can build on into 2023.
This process is called reflection. Reflection provides us with information to assist with our forward planning.
The next stage in the planning process is to prepare ourselves, mentally and physically; make sure our team is fit for the journey ahead and update the products and services we intend to offer next year.
This is my last article for 2022. By now you should have reflected well on the past year and begun to plan for next year.
Last week I introduced a useful model to help with your planning process.
I focused on making sure your products and services were clear, that you understood your competitive advantage and that you knew your income streams – where your money will come from.
Finally, it is important to understand all your costs. Start by identifying all your business activities – everything you need to do to be able to meet customer needs.
What has to be done, who does it and how much time does it take?
If you are growing crops go right back to the beginning of the process and document everything that has to be done from collecting the seeds all the way through to harvesting and selling the produce.
Do the same with whatever business you are in.
It is very easy to forget activities that are time consuming and therefore costly.
As the business owner, consider your value to the business. What is your main role, and how do you deliver that role?
How much do you cost the business? Make a list of all the people you rely on to run your business.
This might include family and friends, partners, suppliers and contractors, other businesses, professional services including your bank and accountant, staff including casual and part-time workers and anyone else who is involved.
Then start to identify the resources you need to achieve what you want to do.
People, skills and knowledge, information, processes, technology, equipment and tools, machinery, vehicles and boats, space, safety equipment. All these cost money and need to be maintained.
Be realistic about what you need and where you will get it from. Make a list of your fixed costs like rent, power, data etc; your capital costs (one off purchases) and your running expenses (the costs of delivering your products and services).
Take your time to do this assessment both of your income through your customers and markets and your costs.
In the New Year I will spend time looking in more depth at your cost structure and your income streams.
As you become clearer on your budget forecast, which will include money out and money in, then you will be able to judge how long it is likely to take before you break even.
It is important to know this to be able to assesses whether you have the resources to keep going.
If you are considering a loan for 2023, my advice is to take your time thinking about it and consult with a trusted coach or business advisor. It could be an expensive mistake!
So, at the end of 2022, it is time to assess the year just ending before planning the year ahead. Use reflection to help you.
Draw on feedback from staff, colleagues and customers.
Review your finances. Consider the challenges you have faced during the year and how well you have done to overcome them. Celebrate even the smallest success and do not be too hard on yourselves.
Learn from your mistakes and strengthen your resolve to make 2023 the best year yet.
Remember to thank all those who have helped you on your journey this year, especially those closest to you.
Remember the seven habits of effective people – be proactive; start with the end in mind (have a clear goal); put first things first (plan step by step); communicate well – seek first to understand and then to be understood; think win win – everyone can benefit from your journey; work as a team – two heads are always better than one and, finally, keep the saw sharp – the saw is you. Focus on your physical, mental and emotional health.
Have a wonderful Christmas and a peaceful and safe New Year.
Next year I will expand this planning model to help you get the best out of 2023.
Please send me feedback and if you have any other suggestions or any questions or comments, please contact me.
■ Contact chris@breadfruitconsulting.com or hazel@breadfruitconsulting.com