Don’t Set New Years Resolutions, Instead Engineer Your Business
I’m not a fan of New Year’s Resolutions. I believe that setting goals and checking in on your progress should be part of who we are and our everyday routine, not something that comes around once a year that we give up on after a few days when we feel like it all gets too hard.
That being said, I do see a new year as a great opportunity for reflection. While I’m a firm believer in looking at the road ahead rather than constantly checking in the rear view mirror and dwelling on the past, it is important every now and then to check in on what’s been happening in your business to recap on the disappointments and celebrate your wins as you look back on your highs and lows.
Once you’ve reviewed what worked and what didn’t in 2016, I see 2017 as a great chance for you to Engineer Your Business.
So what is business engineering?
According to Wikipedia:
“Business Engineering refers to the development and implementation of business solutions, from business model to business processes and organizational structure to information systems and information technology. Business engineering focuses on developing innovative business solutions.”
Engineering has lots to do with leverage – it’s all about finding the right levers, making the right adjustments and applying pressure in just the right places to get the best results – here, we’re applying it to business.
To me, Business Engineering at its core simply means being active instead of passive in your business and being the one driving the bus instead of a passenger in the back seats. It means actively running your business in the most efficient and effective way possible so that you can get the most out of it. I see too many people just drifting along in their businesses, letting things happen and being reactive rather than proactive. Instead, I suggest you take the time and make the effort to act purposefully and consciously in your business and you could dramatically improve your performance.
The process to Engineer Your Business is quite a significant undertaking that shouldn’t be taken lightly, and obviously can’t be covered in sufficient detail in an article of some 800 words. However, I’ve put together the following list to provide an overview of the basics of the process to help you put your Business Engineer hat on in relation to your own business:
1. Work out where you really are in your business right now (not where you think you are)
This requires an open, honest, objective and realistic assessment so you can get as close to the real truth as possible. It’s vital that you look at your business with fresh eyes and without attachment
2. Know your numbers with certainty
Knowing the numbers in your business is the very foundation on which everything else is built. If you don’t know your numbers, your whole business could quickly come crashing down around like you like a house of cards. At a moment’s notice, you should be able to lay your hands on important financials such as bank balance, debts, income, costs, profit and other key performance indicators. It won’t do you much good if you find you’re on shaky ground when it’s too late to recover
3. Review your income sources and identify opportunities for income growth
We’re not looking to reinvent the wheel here, but it’s important to be creative, think outside the box and explore all avenues for creating additional income. It might be as simple as boosting your lead generation, improving your conversions or increasing your prices, or it might be something a bit more radical like expanding a product line, building a new partnership or moving into a new market
4. Analyse your costs
When things get busy it can be easy to lose track of the costs in your business – a cost blowout over even a short period can have a big impact on your bottom line. There is huge potential to boost your profit by letting your inner ‘bean counter’ off the leash
5. Innovate and systemise
Efficiency plays a huge part in the profitability of your business. Identifying where you can improve efficiency by implementing systems and processes in your business to get the work done better and faster can really supercharge your business
6. Where to from here?
The final piece of the puzzle is to uncover what you really want out of your business. Build yourself a vision of what you want your business to become and your place in it so you can map out the short, medium and long term future of the business. You significantly improve your chances of reaching your destination when you actually know where you’re going!
Take the opportunity of the new year to really work out where you are in your business and where you want to go and then create a new plan to get there. Design Your Life and Engineer Your Business to achieve that vision and 2017 could be a stellar year for you and your business!
“The opinions expressed by Smallville Contributors are their own, not those of www.smallville.com.au"
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