Are You On Track for Success in 2016?
As we complete the first half of 2016, we should examine where we are against projections (sales and expenses) year to date (YTD) and full year. This enables us to make timely adjustments, if needed.
Our April Arizona Business Poll asked if sales to date were up, flat or down. One third said sales were up, 40% reported flat sales, while 27% indicated declining sales. It is a concern when 67% of respondents have not experienced sales growth this year.
Let’s look at both sides of this coin
Sales are tracking ahead of plan. That’s great. Congratulations.
- Is the increase a direct result of your actions or unexpected and without explanation? If it happened without an explanation, get one fast. This should not be a passive event.
- Will the growth hold for the remaining months? If yes, it’s recommended you do a quick financial review to make sure the revenue growth falls to the bottom line as expected.
- Now is the time to plan for future needs – i.e. additional staff, capacity, inventory and working capital.
Sales are down or flat. Why? What actions are you taking to change the trajectory?
May we offer suggestions?
- Conduct a comprehensive (internal & external) review of your business, as well as competitors. Include conversations with employees and customers to determine why sales are not climbing.
- Take a look at the 4 “Ps” of marketing and how they impact your business.
- Do you have the right product mix?
- Are you competitively priced?
- Are your promotional tools effective?
- Are you maximizing opportunities within your distribution channels?
- Call the statewide Arizona Small Business Development Center Network. They provide no cost one-on-one confidential evaluation and guidance by experienced business advisors to help you fast-track your plans and position your business for success.