We're at that time of year where we business owners are reflecting back on the year that was and starting to make plans for next year. A properly thought out strategic Plan can be the difference between huge growth and more of the same. So what should your planning process look like? It's different for everyone, but here's what we do at Light Switch.
1. Celebrate the victories of the past year
It's so easy to get hung up on things that didn't go as planned that we forget to celebrate the good stuff. We always look at any improvements that happened during the year and do a deeper dive to see if it was something that could be repeated in the upcoming year. Take those wins and try to build some momentum with them.
Something to keep in mind. Just because you set a goal and didn't hit it, doesn't make it a failed goal. For example, I set a goal of 100% year over year revenue growth for 2024. We're not likely to hit that goal now, however, we're already at 70% year over year growth with two months to go! We may not hit the goal, but 2024 was our biggest growth year in the company's history. We're going to celebrate the hell out of that.
2. Be realistic with your goals but push yourself too.
Set a reasonable goal based on past performance for growth, but set a stretch Goal too. Your stretch goal is shooting for the stars while your main goal is the benchmark or minimum acceptable. Based on light Switch's past growth patterns, our benchmark for 2024 was 35% growth. We set two additional "stretch" goals of 50% and 100% growth. We sailed past the benchmark and the first stretch goal. By all measures a good year!
3. Set goals but don't forget the supporting action plans.
If you want 50% revenue growth, what are the actions that need to be taken to ensure you hit that goal? What's that old saying? A goal without a plan is just a dream? Set your goals, attach an action plan to each and then break it down into Quarterly, monthly and weekly tasks to reach that goal.
There are plenty of fantastic planning systems out there to help you organize your thoughts. Whether its a paper planner, a digital planner or some kind of hybrid, these will help you break down the tasks and stay organized.
4. Don't forget the importance of budgeting for marketing.
If your goal is growth in 2025, you need to set a budget for your marketing activities. Too many business owners leave the marketing budget as an afterthought. Generating new leads and sales opportunities requires significant time and dollar investments to be effective. You need to factor in costs for advertising (Both digital and traditional), social content, SEO, lead capture and the list goes on and on.
Not sure what to budget? Data shows that a healthy marketing budget is around 10% of your gross sales. Not sure what you can get for your 10%? Reach out to an expert to get an estimate and see how far that budget will go. We'd be happy to help with a free estimate.
5. It's not just how much you spend, it's about ROI too!
Back in my days in the Direct mail world, the cost of a mailing campaign was always a contentious issue. At the end of the day it only really matters what the ROI is. If you spent $1000 on marketing but only got one customer would that be worth it? It would if that customer spent $10,000, that's a 10: 1 ROI! Every business is different so the metrics will change, but if you're generating a multiple of what you spent then it's likely worth it.
One thing to keep in mind. ROI isn't always a direct line to all marketing activities. Brand awareness is important to make sure that your business remains top of mind. So things like social content, blogs and networking may not be easy to measure effectiveness, but that doesn't mean they aren't doing their jobs. It's just a little harder to measure.
The bottom line is this. The more you plan (and of course that means proper planning) the better your business will perform. Involve your teams; you'd be surprised at some of the ideas they come up with. Have fun, good luck, and don't be afraid to share.
If you want help in planning for 2025 please reach out to us and we'd be happy to help.