Change is constant – Is your business planning?

Change is Constant – Is Your Business Planning Keeping Pace?

We are at the end of the first quarter of 2023 and a lot of North Island businesses have been impacted by severe weather-related issues including flooding and road closures.

What does this mean for businesses caught up in the weather events or affected by the resulting impacts on the supply chain?  Well for most it will mean that your business plan for this year is out of date before the year has even started.  Depressing as this may be, regular updating of business plans and business reviews will be crucial to your business enduring and surviving the current year.

Cashflow will be the key for getting through the upcoming financial year. Sales revenue streams are always better than depending on the bank and other financial institutions.  The easiest ways to retain or grow sales revenue streams are:

1. Improved target marketing – this includes:
   • Identifying both your point of difference and competitive advantage.
   • Analysing your customer base to determine your best customers in both terms of value and paying bills. This may change over time so should be updated on a regular basis.
   • Targeting the specific market segments your best customers are in and exploiting your point of difference. Improved target marketing can be implemented very rapidly.  Its only dependency is your capacity to meet demand.
2. Improved productivity coupled with improved target marketing to produce and sell more products or services. This is also dependent on capacity.
3. Reduced Rework reduces waste and increases productivity.
4. New product development – bringing new improved products to the market that benefit the customer and add to your point of difference.
5. Removing loss making products that add no value to the business.
6. Price increases – don’t be a martyr; pass all price increases onto the customer. The amount may be dependent on your competition and the supply chain; however, if there is a shortage of your product or services in the market, then this is a very quick and easy way to improve your sales and gross profit margins.

If you think you are doing too many hours in your business or are generally not happy with the way your business is performing, why not take my quick 2 minute health check https://intotheblue.co.nz/business-health-check/ or contact me at john@intotheblue.co.nz or (021) 625-871.