It’s that time of the year, when we’re reflecting on what we did last year, and swearing off the booze and sausages (again!). But with a sense of renewal in the air, it is a good time to start planning for the year ahead to make sure your business can kick some serious goals. And I’ve put together some simple and easy tips to help you get started below.
Take charge of your finances (and check in with your bookkeeper or accountant)
Make sure you’re chasing up any unpaid invoices and paying any contractors that you owe. Once you’re in line, have a chat with your accountant or bookkeeper to check in if they foresee you having any cash shortfalls or additional cash flow in the new year. This will help you be in more control of any future financial issues.
Starting the year off with your financial admin cleaned up will help you feel less stressed, giving you a clearer head to start gearing up for 2023.
Review your business goals
When you started your construction business, I bet you had some ideas on what you could do. And then BAM, life happens, you’re under the pump with back-to-back work and you’ve forgotten about your original plans.
So let’s backtrack… January is a great time to reflect on what you have accomplished as a business owner, and to start writing down some goals for 2023 success. Some ideas below:
- Increase/ reduce staff by x%
- Increase profit by x%
- Start actively posting on Instagram or Facebook at least once a week
- Reduce wastage by x%, saving $y
Create an action plan to achieve your goals
This is a really important step. Once you’ve figured out what your goals are, you need to consider how you’re going to achieve them. This will be individual to your goals, however it’s vital you outline a plan. As they say, ‘actions speak louder than words’.
Here’s an example below:
Goal: Increase profit by x%
Action:
- Reduce or increase staff by 5%
- Increase all new variations by 10%
- Join NextMinute to make sure I’m across all things planning, people, price and profit (shameless plug here, but WE DO help companies grow and become more profitable)
Plan for failure (and success!)
There’s a bunch of news going around about an impending global recession, and as a business owner in the construction industry, I’m sure you’ve felt the pinch of inflation as well as labour shortages and the ever-increasing costs of materials. It might feel stressful just the thought of so much financial uncertainty. But there’s a way around it… And it’s called a contingency plan. Sounds boring right? But… it will put you in the driver’s seat of a changing labour market, and it’s pretty simple to do. I’ve put together a process outline below:
- Identify your business essentials
Make a list of what you NEED to keep your business running day-to-day. This can include anything from operations to software to people - Lay out what potential negative scenarios could be
For example: Materials go up by 25% - Create a plan for each possible scenario
For example: Materials go up by 25%. Plan is to increase variation costs by 20%
This short and easy process will put you in control, and give you peace of mind, so you’re starting the new year off on the right foot.
Planning for success is a little easier. It’s relooking at your business goals, and planning for after you achieve your goals. For example, say you do increase your profit by x%, what are you going to do with the extra money? Can you reinvest in the company, or buy new equipment? It’s the success loop you need to make sure you close, so you’re continuing your measurement of success keeping your business on track.
I hope these tips are practical enough to help you get your business on target for 2023. If you would like to chat with me or one of our team members, feel free to reach out to the team on hello@nextminute.com. We don’t only live and breathe everything construction, but are experts in helping you to achieve your business goals.
And finally…here’s to a happy, healthy and prosperous 2023!
