Taking stock of the new business year so far

Dr. Marilyn M. Helms, February 03 2002

 

As you check the progress on your business resolutions for the first month of 2002, how have you done?  If you are not where you want to be, consider benchmarking your resolutions with the top 10 business resolutions for the 2002.

First, re-examine your marketing approach. Be sure your company is taking the proper measures to identify areas of market growth. Many external forces including technology and international forces cause changes in competitors.  As their product or service offerings evolve, you must revitalize your marketing approach to emphasize important product and service features.  Continue to expertly serve the existing customer base while developing ideas and strategies to attract new customers.

Secondly, profile your best customers.  A profile of your best customers will help assess the worth of your customers and this information will aid you in locating prospective customers suited to the products and services of your company.  As you segment your customers you will identify those that are more profitable to your company

Third, invest in formal, structured, sales training and technology in order to keep up with current trends.  Most sales representatives use laptop computers or personal digital assistants containing customer information.  Transmitting field orders electronically can speed order processing and reduce errors in order entry.  Many of the time saving electronic devices quickly pay for themselves and increase the productivity of your sales staff.

Fourth, refresh your business perspective.  Fresh business ideas often come from an outside, objective third party.  Use friends and family to brainstorm ideas as well as your formal or informal board of directors.  As you travel, be sure to visit other businesses like yours.  Often people in other cities and countries are more willing to share ideas.  If you are seeking new business ideas, researchers predict hot trends in California or New York will reach our area in three to five years.

Fifth, stream line your business strategies.  If you can’t compete on low-cost, focus on a unique niche or customers you can serve by differentiating your product or adapting your service to their special needs or wants.  If you are overwhelmed with areas outside your expertise, consider outsourcing these areas to allow time to concentrate on your core processes.  Many firms outsource accounting and human resources activities. 

Sixth, as you consider technology, evaluate your network security and consider upgrading your security systems.  Along a similar line, your seventh resolution should be to review your organization’s disaster plan and make sure procedures are known by all employees and are posted.

Your eighth assignment is to continue investing in employee training.  In economic downturns many companies assume they can save short-term dollars by cutting training and the related travel which only backfires and jeopardizes long-term success.  Slow times are excellent times for thorough training and upgrading of skills.  When the business cycle begins a strong upturn, your employees will be ready and able to quickly act on new business opportunities.

Ninth is to take stock of the variables your company measures and rewards and why you chose them.  Are they appropriate?  Are you measuring variables that correspond with your business strategy?  If you are competing on low costs or value, are you measuring cost containment, efficiency, and searching for ways to reduce waste or excess?  If you are competing on speed and flexibility, your measures will be different.

Finally, talk to your employees about ways to improve the company on a regular basis.  Short informal meetings, a conversation in the elevator, or the old fashion way, with an employee suggestion box are all effective ways to gather ideas and feedback.  Remember to promptly consider the suggestion or act on them.  If the improvement options are not possible, tell employees that as well.

 

Dr. Marilyn Helms is the Sesquicentennial Endowed Chair and Professor of Management at Dalton State College.  She welcomes your comments at mhelms@em.daltonstate.edu or at 706-272-2600.  Dalton State College, Georgia’s Newest Four Year College, is anxious to serve you.