Laptops, remote working, video conference calls: the way we conduct modern business would have seemed like a dream just a few years ago. Business environments evolve constantly, and with new technology and oscillating customer demands, it can be difficult to make sure that your business survives. How can you future-proof your business? From setting revenue targets to focusing on employees, we’ve compiled our best tips below.
1. Look to the Future
Doing your best to predict what will happen in the future is crucial to future-proofing your business. In a recent article, entrepreneur and business expert Scott Steinberg highlights the importance of doing your best to anticipate where the market is going. Steinberg says: “Consider where the future is heading, the way in which end-users’ needs are constantly changing, and how you can put solutions in place today that tomorrow’s customers will demand.”
But what does this look like? Steinberg shared some of his best tips:
- Give workers freedom to take plenty of small, cost productive risks that have potential to pay off. This gives your employees the freedom to learn as they go, as well as the space to make small mistakes.
- At the boardroom level, make sure that your business is trying out a variety of new, strategic measures all the time. This will cultivate a state of constant evolution, critical to making sure your business stays relevant.
2. Prioritize Customer Experience
When it comes to future-proofing your business, the safest place to start is prioritizing your customer’s experience. In a recent article for Virgin, business expert Matt Bailey suggests being a customer yourself to get in the right mindset. Bailey said: “Buy your product or use your service as a customer would. Call into the customer service team, and see how you are treated. By simply approaching the company as a customer would, you can discover your business’ strengths and, crucially, its weaknesses.” Once you’ve thought about things from the customer’s point of view, Bailey suggests pushing yourself further by asking questions such as:
- What do your customers want from your business?
- What do your customers expect from your business?
- What is your business doing that your customers don’t like?
- How can you make your business stand out?
2. Set Financial Targets
In business (and especially small business), cash flow is everything. Setting financial targets could be all the difference when it comes to making sure your business survives the future. For David Cawley, business accountant at Fraim CPA, it’s all about identifying your revenue targets. Cawley said: “businesses should financially prepare for their busy season by creating an annual budget and setting sales goals throughout the season. When companies do this, they can track their performance through their busy time of year and project their cash flow to cover the slower periods.” He recommends honing in on three target phases:
- Target One: Generate enough revenue to cover fixed costs, such as salaries, rent, and utilities, for the entire calendar year.
- Target Two: Generate enough revenue to purchase new equipment or reinvest back into the business.
- Target Three: Generate enough revenue for the business to hit an agreed target profitability margin.
The benefits? For Cawley, “Having these goals motivates management and staff to continue to take advantage of the busier time of year, and to help cover cash flow for the rest of the year. Setting goals like these also help businesses close their busy season on a strong note because they will likely be nearing another goal to push for.”
4. Future-Proof Your Employees
Employee turnover costs US businesses over $1 trillion annually, according to a recent survey from Gallup. But why are we leaving? For Forbes contributor and career growth expert Courtney Brand, it’s all about development. Lack of future opportunities is one of the leading reasons that employees call it quits with their companies, but according to Brand, 72 percent of businesses offer career development. What’s the issue? Companies are not investing in the career growth measures that matter to their employees. What can businesses do?
- Tailor development to the individual, not the role.
- Acknowledge that career growth isn’t always linear.
- Let employees try out different roles and career paths within your business.
- Hire individuals to grow the business, not fill a role.
- Upskill your employees, so they can evolve with the company.
Things change quickly, and the most successful businesses are the ones that embrace this change. With these strategies, you can all but guarantee your business’ survival.
