Setting Your 2024 Business Strategy: A Shift in Perspective
05 Jan 2024
12 January 2024
Did you manage to catch up with my blog last week? If not, I highly recommend giving it a read before diving into this one. Over the next four weeks, I’m embarking on a discussion about your 2024 game plan. Let’s delve into how you can strategise and map out your route for the year ahead. Last week, we examined what we’re tolerating in our businesses and what we’re no longer willing to put up with in 2024. Before charting our course, it’s crucial to understand these facets.
In this blog I’m going to focus on a pivotal aspect: your financial strategy. I want you to ponder over some fundamental questions. Are you taking home what you desire from your business? Or are you left being paid last? Consider this: if you were to be replaced in your business, the cost of replacing your multifaceted role would likely be substantial. So, are you truly taking home what you’re worth?
The profitability of your business is paramount for sustainability. A profitable business not only thrives but also enables you to make a more significant impact. But how do you determine if your business is truly profitable? Many entrepreneurs find themselves in a dilemma when it comes to accounting for taxes, especially around this time of the year. It’s essential to reassess your take-home income. Consider it akin to a thermostat, determining your current financial temperature in 2024. To earn and retain more, we often need to elevate our financial thermostat and alter our mindset towards money.
Running a business isn’t just about emotions and goodwill; it’s about numbers too. While heartfelt dedication is admirable, a profitable business necessitates a focus on numbers. Greater profitability facilitates more generosity and enhances your capacity to deliver exceptional experiences to clients. Growth is a common pursuit for businesses, yet growth without financial health can be detrimental. Simply increasing sales or revenue isn’t the ultimate solution. Instead, understanding the targeted outcome (like your income goals) and working backward to identify the necessary revenue becomes the key.
The crux lies in profitability, not just increasing revenue figures. It’s about understanding your margins, trimming inefficiencies, and optimizing prices. This approach aligns with the ‘Profit First’ model, where every transaction contributes to sustainable financial health. Profitability should not be an annual afterthought revealed by your accountant; it must be ingrained daily in your business. Adopting the ‘Profit First’ model offers a system that accurately reflects the health of your business, steering you away from merely checking your bank balance to gauge success. This system is a game-changer, even for those who dread numbers. It allows you to navigate your finances proactively, ensuring your business stays on track while alleviating overwhelm.
As we plan for 2024, remember: profitability depends on efficiency. Simplifying processes, revisiting accounting methods, and embracing modern financial models like ‘Profit First’ are crucial steps towards sustained profitability.
I encourage you to take a moment after reading this blog to define what you truly need to take home from your business. Setting immediate, intermediate, and ambitious financial goals allows you to envision your financial future clearly.
Over the next few weeks my blogs revolve around discussing your marketing and sales strategies for the upcoming months. Keep reading for insights on how to amplify your business’s reach and conversions.
If you’re eager to explore how the ‘Profit First’ model can work wonders for your business, let’s chat, block some time out in your diary and book in here.
My aim is to simplify your financial journey, empower you with insights, and help your business thrive.
Here’s to a profitable and fulfilling 2024!
05 Jan 2024
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