What is your business building approach to 2019: Chose one of 3 strategies
2018 has been an exhausting year. Taking time off is important, so long as you don’t break the momentum of your business. Start the new year with an invigorated perspective, clarity, and confidence, and spend some of your holiday defining your 2019 business strategy. It starts with making the right decisions for your business. On The Money Show with Bruce Whitfield, Pavlo Phitidis shows you how
Four major 2019 trends
Four major trends will have a significant effect on your 2019 business strategy and growth:
- An election year: South Africa will hold national elections in 2019 and, while this may dominate the headlines, voter enthusiasm is waning.
- Power cuts: The return of load shedding cannot be ignored. The impact of regular power cuts on South African businesses is dire.
- Uncertainty breeds desperation: Uncertain circumstances affect the day-to-day activities of people. People often respond to desperate circumstances by obfuscating facts, fudging the numbers, or downright lying.
- Cyber risks: The cyber risks related to running a business are growing. Even the biggest institutions are battling to combat and stave off cyber-attacks and hacking incidents.
It’s decision time
You cannot change the business environment you’re working in, but you can use your holiday time to make firm choices, and take decisive action. Here are the three options you face:
Are you in?
Ambivalence around your business’ future will only lead to stagnation. Once you’ve committed to being in for 2019, then growth is your choice:
- Focus on your business growth, and free up your time by simplifying and systematising as much as you possibly can.
- Slim down your operations to focus only on your core business, and invest in suitable technologies to offset the effects of power disruptions and other uncertain circumstances.
- Invest in the right kind of people and don’t be tempted to just fill a vacancy because it needs filling - the cost of hiring the wrong person is so much higher than you’d expect. Check those references, and thoroughly research your applicants.
- A tight economic environment means that your customers need cost-effective, efficient solutions to their problems. Centre your 2019 business strategy around ensuring you solve your customers’ unique problems in a specialised way.
- Build, maintain, and grow a solid, continuous sales system.
Are you out?
If you decide you’re out for 2019, you’re going to plan to sell your business. If you’re out, then craft your business strategy as an exit strategy. Prepare to sell your business by:
- Running the numbers and figuring out your business valuation: If you’re not happy with the numbers, then build a 2019 business strategy that’ll get your business to the point where you feel confident enough to sell it. Determine the value you want, and build towards it. There are three important levers linked to your business valuation. Optimising your business with those three levers in mind will enable you to build your Asset of Value towards your ideal selling price.
- Understand your ideal buyer: A year before you hit your business valuation target, start looking to find the ideal buyer for your business. You’ll need to choose from three different types of buyer situations:
- A private buyer, who wants to purchase your business and continue growing it;
- A no-mans-land buyer situation, where your business is too big for a small buyer to purchase, but it’s too small to be of interest to a large company or,
- A listed entity or large company, where you’ll need to learn more about their acquisition strategy, and how to make your business attractive enough for them to want to acquire it.
Are you doing nothing?
Choosing to do nothing in 2019 could lead you to lose out on market share though, as your competitors move ahead with their business strategy. If your 2019 business strategy is to just let things tick over, then don’t use it as an excuse to sit still. Commit to learning something new, expanding your skill sets and abilities. It could lead you in an entirely new direction.
Don’t let complacency set in after a tough year. Make the right decisions for your business, so you can continue to build an Asset of Value. At Aurik, we help you make the right choices for your business.