“Today, is the first blank page of a 365 page book. Write a good one.”
A financial year is a period of 12 months, wherein the Government, businesses and other entities/institutes calculate their budgets, profits or losses made. However, in India, the financial year has a great significance, as it also coincides with the Hindu New year. It begins in April which is also known as ‘The Chaitra’ as per the Lunar Calendar. It is considered to be a very auspicious month as Lord Brahma created the universe in this month. Therefore, it’s believed in many Indian traditions that the new journey in every business should be started during this month on a clean slate by closing the books of last year’s transactions.
As we begin this new journey today, here are the 11 MOST EFFECTIVE FORMULAE to implement in business, to make this year better than any other in the past.
- IMPROVE HEALTH : How does one expect to effectively run a business if one is exhausted and burnt out? One needs to be healthy mentally, physically and emotionally. Give the immune system a boost. When one eats healthy, rests properly, meditates and exercises regularly, then he stays more productive and happy. This results in fewer sick days and gets tasks accomplished on time.
- WORK ON THE LEADERSHIP AT ALL LEVELS : One of the biggest challenges that entrepreneurs face is being an effective leader. This means delegating tasks, motivating the team low on morale, creating an environment that welcomes creativity, out of the box thinking, and most importantly never loses sight of the goal.
- BE IN THE NUMBERS GAME : Never believe that understanding the basics of accounting is redundant, as you have an accountant to do so. The fact of the matter is, all entrepreneurs should familiarize themselves with at least accounting basics since this will help;
- Reduce expenses as much as possible (both personal and business).
- Measure the business progress to know whether or not they are meeting targets.
- Get personal credit up as it’s a factor in getting business loans.
- Make financial predictions by evaluating future revenues, operating costs, and assets required to serve future demand.
- Pay off bad debts.
- GET MORE SOCIAL : Social media is one of the best ways to engage and interact with customers, spread brand awareness, connect with influencers, and investors in the industry. If a Facebook, Twitter or LinkedIn account is dormant, spend the next year being active and optimizing these channels.
- DON’T COMPROMISE ON VALUES : Core values are what support the vision, shape the culture, and reflect the company’s true values. They are the essence of the company’s identity – the principles, beliefs or philosophy of the company. Many companies focus on the technical competencies but, often forget the underlying ones that make systems run smoothly. Establishing strong core values provide both internal and external advantages to the company.
- Core values help companies in the decision-making processes
- They are becoming primary recruiting and retention tools
- They educate clients and potential customers about what the company is about and clarify the identity of the company.
- STAY ALIGNED TO WHY WE EXIST : The reason for a company’s existence (which should last at least 100 years) shouldn’t be confused with specific goals or business strategies (which should change many times in 100 years). One might achieve a goal or complete a strategy, but cannot fulfill a purpose i.e. its reason for existence. It’s like a guiding star on the horizon, forever pursued but never reached. Although, purpose itself does not change, it does inspire change to find organization’s reason for existence this year to make a difference.
- WORK ON WHERE WE WANT TO REACH : Identify the Long term (10-30 years), Mid Term (3-5 Years), & Short Term (1 Year & Quarterly) Goals for the organization. Goals/targets act like the yardsticks which if worked thoroughly will help reach the goal in the stipulated time frame.
- FOCUS ON WHAT WE WANT TO ACHIEVE : Set the ANNUAL PRIORITIES – what are the top 5 most progressive, rewarding initiatives that will give the company, desired makeover in one year? Such initiatives could be related to Systems, Centralized Function Strategies, Capability Building Initiatives, etc. Stick with the initiative, and be patient as it will act as a virtual bridge to reach the desired goal in the future.
- PLAN HOW TO ACHIEVE IT : Strategize the QUARTERLY ACTION PLANS to achieve the set goals & initiatives. Make plans for a quarter and run it, review it, revive it, and if needed change it on a quarterly basis. Breaking down the big annual goal to small quarterly game plans, will make it happen. Have clear deadlines in quarterly plans to ensure results.
- ASK WHEN ON WEEKLY BASIS : Never miss out on this !!! Focus only on NUMBERS, on a weekly basis. Weeks are considered to review numbers, gauge the achievements and rectify it immediately. Review all the related numbers for
- Sales & Sales Productivity
- Operations & Operational Productivity
- The Profits, here
- The balance sheet & Cash flow, here.
- ATTRACT THE BEST ‘WHO’ FOR ORGANIZATIONAL SUCCESS : Hiring the right people is crucial for business owners. They will bring out the best in the owner, and the organization. They will help the business grow, as they will be the biggest brand advocates, and low turnover would keep costs low. Hiring isn’t easy, but attracting and retaining talent that fits in the company’s culture greatly increases chances of success. Make company’s core team more aligned this year!!!
Wish all a very happy, new Financial Year & entrepreneurial journey !!!