Strategic Planning Makes Everything Easier (Sabrina Starling on Small Business)

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As we go into the new year, strategic planning is a priority. Taking the time to answer some key questions will make everything else easier, or unnecessary, for you in the year ahead. Three key areas for strategic planning in a business are profit, revenue and team.

Profit

How much profit do you want in 2025? What is your realistic plan for achieving this? Profit is more important than revenue growth. Many business owners come to us with solid revenue growth, yet the business owner is exhausted and frustrated. Even though the revenue is growing, cash flow problems continue, and the owners are unable to pay themselves more. When revenue growth is prioritized over profit, it feels like being on a treadmill that keeps speeding up. We keep our clients focused on growing profit.

Review your pricing. Does your pricing create a margin for growth in the year ahead? If you are experiencing price competition and fear a price increase will lead to reduced business, it’s time to strengthen your value proposition.

Review your expenses. What expenses can be cut? What expenses do not serve the sweet spot of your business?

The sweet spot is the intersection of your top clients, your unique offering and the systems you put in place to deliver your unique offering to your top clients. A poorly defined sweet spot makes it difficult to identify expenses to be cut. A clearly defined sweet spot clarifies costs that can be cut to increase profit. It also makes it easier to convey your value and price for your anticipated growth appropriately.

Revenue Growth

How will you grow your revenue? The easiest way to increase revenue is to deliver additional value to your top clients and customers.

What are your best clients and customers wishing you would do for them?

How are your best clients and customers finding you?

How might you attract more of your best clients and customers?

Focusing on serving your top clients and customers better and attracting more business from those like your top clients and customers is a simple way to keep expenses to a minimum. This improves your profitability as your revenue grows.

Team

What roles do you anticipate filling in the coming year as you grow the sweet spot of your business?

How will you attract A-player team members who fit your culture well?

One A-player will be 900%-1,200% more productive than a warm body. A-players grow your profit. Developing a system for attracting A-players to your team is worth it.

Here’s to a great year ahead!

Sabrina Starling, Ph.D., PCC, BCC, is the bestselling author of “How to Hire the Best” and “The 4 Week Vacation.” Founder of tapthepotential.com and host of the “Profit by Design” podcast, she and her team coach entrepreneurs to take their lives back from their businesses. They are on a mission to send 10,000 entrepreneurs on a four-week vacation in 10 years.