Starting to work out, eating better, or taking better care of yourself are all personal resolutions you hear proclaimed every year. Let’s put them aside for now and talk about your business. What resolutions have you made for it? We should be going into the new year with changes in mind to better our business.
Not unlike personal resolutions, these should not be a simple wish list, but a list of what to do, how to do it, and when to do it. Hmmn? Kinda sounds like creating a S.M.A.R.T. list of goals, doesn’t it? That’s really the key in a nutshell with the added layer of how you’re going to accomplish them.
Just like any goal, these need to be defined as Specific, Measurable, Attainable, Realistic, and Time bound. So let’s take a goal that you may have. Let’s say you want to increase the profitability of your boot camps. Let’s define that
Specific: Increase the profitability of your boot camps by 25%
Measurable: Through use of a Profit/Loss worksheet
Attainable: Yes (let’s assume)
Realistic: Yes (again, let’s assume)
Time bound: By the end of the first quarter, March 31st, 2015
This is where the real work begins. We’ve defined our goal. We know precisely what it is, but how, again specifically, are you going to get there?
Can you define the reasons your boot camps are not doing as well as you’d like? It could be lack of space, equipment, or instructors. Let’s, for the sake of an exercise, say its lack of space. Your class is at capacity for the size of the room. What options do you have to increase profitability?
1) Charge participants more for the class
2) Reduce the overhead:
-what you pay for the space
-what you pay the instructor for the class
-what you pay for the equipment used
3) Increase the capacity of the class so you can take more participants by:
-Be more efficient in the use of the space that you have
-Rent a larger space
-Take it outside in a park
Which of these suggestions or combination of suggestions can you implement that will get you to your profitability goal? If you choose to increase rates for participants by $2/class, negotiate a lower facility rental agreement, and increase capacity by using activities that require less space, would that get you there? When will you implement by to reach your goal?
This is the process to create real resolutions vs a simple wish list. It is your game plan for building your business for the upcoming year. Spend time on this.
I’d love to hear what the top resolution is for your business in 2015. Please share what it is in the comments below.