Part of doing business is continuously adapting to any possible changes, be it one caused by external sources or internally-driven ones. Therefore, taking some time to revamp your business strategies is a worthwhile endeavour, and it is even more so important if your business hasn’t been reaching the targets that you expected it to achieve in your timeline.
One way to do this is to look at making short-term changes: at a range of around six to twelve months. However, how do you determine what to change, or even whether a change is necessary? Consider following these three steps before you start making any changes to your short-term business strategy.
#1 Evaluate your metrics
If you have decided to change your business strategy in some ways, the first things you need to do is take a look at your numbers. How are you doing financially? Are there some costs that you need to drive down? Alternatively, do you need to spend more on some things? Even if you do, should you take a loan or use your cash in hand? These are but a few questions that should come to mind when you’re sitting down and shifting through your financial reports.
Your financial reports are not the only thing you should also consider, however. Pay attention to other data points that you have. For example, if you use point-of-sale software for your business, you may also get data on when you tend to generate the most sales. If you use digital marketing, you can get data on how your advertising budget translates to conversion. By evaluating the metrics you already have, you can make a better decision on the type of business strategy you need to pursue.
#2 Decide what to prioritise
No matter the scale of your business, a lot goes into making it operate. So, when you’re planning to make changes to your business strategy, prioritise what you want to do differently. In general, most business strategies would be directed at either one of these two things: decreasing cost or increasing revenue. It is better to choose one of these instead of focusing on both.
Once you’ve decided on the direction of your strategy, start listing some aspects that you need to change from your business. If you’re planning to raise your revenue, you may want to start increasing the number of your product or service offering. Alternatively, you may instead try to find more customers, which may translate into opening a new branch or collaborating with other businesses to sell your products or service.
#3 Find a better way of doing things
Sometimes, a change of business strategy doesn’t have to be completely drastic. It can be as simple as changing how you operate. Changing your operational method doesn’t have to be too complicated, either. You may be able to impact your business’s overall growth just by changing small things.
There have been numerous success stories about this. Several hospitals decreased their death and complication rates just by introducing the staffs involved in an operation to the patient before it starts. A content marketer increased email conversion rates just by offering a summary of his blog. A small guest house owner found better customer satisfaction, decreased cost, and increased productivity from doing little things such as providing business card-sized pieces of paper for their guests who often exchange contact information with each other. By improving how your business operates, you may be able to achieve the business targets you set in your 6 to 12 month strategies.
These three initial steps can help guide you in designing a 6 to 12 months business strategy. Remember, just because it’s a short-term change doesn’t mean that it can’t impact your business in the long run.