Getting the best out of your business for 2016 means going back to basics

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So says Ethel Nyembe, head of small enterprise of Standard Bank, who suggests that getting back to basics is the logical place to begin planning for 2016. The first thing to be considered is your business plan.

Reviewing your business plan will give you an idea how far your business has come. It will tell you where you have succeeded and where you have lagged behind the expectations you had. If some of the targets you set, but didn't reach, are still relevant, look at what you can do to exploit these opportunities. It could be an easy way to open new business opportunities in the New Year. "Reviewing your business plan should also inspire you to add in new targets and bring the document up to date, so you can take your business up a level and go for growth in 2016."

Nyembe also suggests that the following be considered:

1. Examining your books for 2015:

   Looking at your financial records for 2015 can have significant benefits for the year ahead. For instance:

   • You will be able to identify which months were good for you and which were quiet - and why this was so. This will help you to plan your cash flow more accurately in 2016. So, if business was slow in April 2015 because of the public holidays and your cash flow was under pressure, you can make financial provisions for this and avoid stress in 2016.

   • You can set realistic financial milestones for the business. Once you have decided that you should be able to increase business by, say, 15% in 2016, you have an objective to work towards.

   • Look at your payment terms and see whether there are suppliers who could possibly provide stock on consignment, or others that you could extend payment terms with, say 60 days instead of 30 days.

   • Decide whether the slow payers during 2015 are worth having on your books in 2016. Tightening your accounts policy for 2016 will ensure that slow payers don't become a drag on your cash flow for yet another year.

2. Examine your sales figures for 2015 and check what customers bought:

   Starting off 2016 knowing what items flew out of your store and which were slow sellers during 2015, is great for planning. You should increase stocks of popular items and begin reducing stock of items that sell infrequently. Although this sounds obvious, it is amazing how many business owners get stock levels wrong. By getting this right you could increase purchases of popular items, and, if these orders are significantly increased, ask your supplier for a 'bulk discount'. You could then reduce the prices of these items and attract more customers to your business.

3. Think about your marketing:

   Many entrepreneurs and small businesses owners are still intimidated by the internet, social media and digital marketing. They believe that it is expensive and only for businesses with lots of cash. But, nothing could be further from the truth - digital marketing is for everyone, especially small businesses that have a product or service that is attractive to a large customer base. Look at:

   • Refreshing your website. If you don't have one, consider getting a site designed and ensure your content is fresh, informative and inviting.

   • Customers love learning about new products and their features and benefits. Helping your customers by providing value-added information makes it more likely that they will visit your business when it is time to buy.

   • Think about joining the digital shopping revolution. Having an online 'store', if done well could potentially increase your sales.

Too many small business owners devote money they have 'left over' for advertising - their publicity campaigns are, therefore, often ineffectual and appear only occasionally. Having a proper advertising budget will ensure that you create 'top of mind' awareness on a consistent basis.

Deciding how you spend the budget depends on the size of your customer base and its location. You may want to target a few suburbs, or across a town, province or region. A professional will guide you on how and where to effectively utilise your publicity spend - it could change your business.

Taking a look at your industry trends:

Take a few hours off to do some research on trends that are picking up in your industry.

• Look at what your competitors are doing in this space. What they do well in their outlets to market and display their goods. Think about what you can do to either equal or surpass their efforts.

• Check the market prices to verify your competitiveness.

• Look at the product mix currently in the market. Do yours match or surpass these products and what competitive advantage do you bring to the fore?

• What is happening in the globe that could affect your industry? If anything, brace yourself for eminent changes and start innovating in order to be able to thrive during the changes.

"Owning and running a small business often leaves little time for the owner to reflect on what can be done to improve the business and prepare for the year ahead with the economic outlook in mind. Finding time to reflect and assess can make all the difference," said Nyembe.