Strategy 5 - Where are you now in relation to your goals and how to bridge the gap
In this edition we look at the gap between where you are today and to where you need to be to reach your goals. We’ll also explore strategies you can use to bridge the gap.
If you’ve been following our blog series and implementing the strategies to date you will have addressed short term focus, applied a long term focus, defined your business vision and determined your goals to achieve your vision.
Having set 5 year and 1 year SMART goals as part of Strategy 4 it’s important now to understand what the gap is between your current situation and the goals set for 12 months’ time.
To help grasp the gap that needs to be filled, assign tangible figures to your goals and measure these against the actual results for the previous 12 months.
Using the previous example of average monthly sales of $600k in 2018, it is determined that the average monthly sales in 2017 were $550k. Therefore, the gap to our objective in 2018 is to increase sales by an average of $50k per month.
Gaining a good understanding of the quantum of this gap sets clarity for the business for what needs to be achieved in the next 12 months to move towards the vision.
Strategies to bridge the gap
Now that the quantum of the gaps for the next year are established a brainstorming session needs to be held to determine the best strategies to increase sales by $50k per month. For example, this could include:
- signing up new customers by:
- marketing in new geographic regions
- setting up a referral program
- commence advertising on various media
- launching a new product or service
- increasing prices across the board
- broaden the range of existing product/services that existing customers are buying
The idea is to have all key team members in the session and gather as many ideas as possible. Do not filter these ideas during the brainstorming phase, just record as many ideas as possible.
There will never be enough resources or time to implement all of the ideas that come from this session. Therefore, the next step is to look at all the ideas documented and prioritise them into the most important/effective. This is often referred to as applying the Pareto principle and there are many ways to do this.
Select the top 2-4 ideas to take into the next step of documenting the actions required to implement these ideas.
Hanrick Curran has many years of experience supporting SME business owners to improve their business performance. If you would like to review how your business is currently performing and discuss strategies that can have a significant impact on your business please do our online business improvement assessment, speak with your usual Hanrick Curran advisor, or alternatively call Robert Pitt on 07 3218 3900.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.