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Originally Posted On: https://www.msn.com/en-us/money/smallbusiness/unleash-the-beast-how-to-improve-business-performance-in-2024/ar-AA1k2AVt
Did you meet your business goals in 2023?
If you did, thumbs up; but it’s not time to stop. You probably already have bigger goals lined up for 2024. And if this year was one to forget, next year is the best time to get things right and unleash your business’s true potential.
Knowing how to improve business performance year over year is what makes the difference between successful and failed entrepreneurs. Whether you’ve been struggling to hit your performance targets or just need to move to the next level, this guide is for you.
Dive in to learn practical strategies you can use to unlock your business’s operational performance.
Do a Performance Audit
To improve your company’s performance, you must start by establishing where you’re falling behind. This is where a performance audit comes in handy.
Look at the various functions in your business, such as sales, marketing, and employee productivity. If you didn’t reach your sales targets, for example, try to establish why that was the case.
Did you not have enough sales personnel? Did you not invest adequately in marketing and advertising campaigns?
An internal performance audit will suffice for small companies, but if you’re a mid-sized or large organization, it may be best to outsource the job to third-party companies that do performance audits. They have the tools and expertise to dig into your processes and find out what’s ailing the firm.
The results of your performance audit will inform the steps you’ll take to get better results in the coming year.
Set Smart Performance Goals for 2024
Goal setting in business is a good practice that can make a world of difference when it comes to business performance improvement. However, the wrong goals can make it look like you aren’t making any progress.
For example, imagine a startup that aims to generate $1 million in 2024, down from $200,000 in 2023.
It’s possible to make great leaps in revenue year over year. Some startups have done it. However, such kind of revenue growth is the exception, not the norm.
If this startup’s revenue jumps from $200K to $600K, that will be an impressive improvement. However, because it didn’t mean the $1M target, the founders can easily look at the year as a failure.
For 2024, set smarter goals. These are goals that are specific, measurable, achievable, relevant, and time-bound. A few good examples include:
- Increase 2023 revenue by 30% by acquiring 100 new clients
- Close $500K worth of sales by the end of the year
- Increase monthly active users by 30% by running target ads on Facebook
- Grow organic website traffic by 50% by the end of the year.
Of course, your goals are going to change depending on the nature of your business, but you catch the drift.
Invest in the Right Business Technology
Today, every business is using some form of technology in its operations. Is your technology holding you back?
If you’re using legacy technology, as are over 60% of businesses in the United States, your IT infrastructure is preventing your business from achieving optimum operational performance.
Those old computers with outdated operating systems might be doing the job, but they’re not only a hindrance to greater performance but also a major cybersecurity risk.
To enhance your business’s performance in 2024, move away from legacy tech systems. Keep in mind that upgrading your technology doesn’t necessarily mean replacing the old systems with the latest hardware and software. You need to invest in the right technology for the needs of your business.
In addition to upgrading your hardware and software, it’s essential to build a tech team to help with the deployment and management of your new systems. If you don’t want to add to your labor costs, you can outsource the function to an IT support company in your location.
Build a Positive Work Environment
Several large organizations have hit the news in the recent past because of their toxic workplaces. However, this issue isn’t confined to the big companies. Even small businesses with less than 10 employees can have toxic workplaces.
A toxic environment has many consequences, including hurting organizational performance. Workers in a toxic environment are typically demoralized, dissatisfied with their jobs, and often looking to find a new job.
This is why building a positive environment in your workplace can go a long way to increase not just employee productivity, but also the performance of your organization as a whole.
Learn the signs of a toxic workplace culture and try to identify them in your workplace. You can also conduct an anonymous survey to collect feedback from your employees about the state of toxicity in the workplace.
You can take several steps to build a better work environment, but the most impactful ones include ensuring the workforce is diverse and inclusive. Your workplace policies should promote transparency, openness, and equity.
Invest in Employee Training
Employees are the lifeblood of your organization. Without them, your operations will grind to a halt.
You work hard to ensure that you’re recruiting people who are fit for the job. But do you put any effort into ensuring they remain suitable for the long term?
Without regular employee training, it’s impossible to ensure your people have the right occupational skills and knowledge at all times. Training upskills your employees and keeps them competitive.
Identify skills and knowledge gaps and design training programs that will address those gaps. There are third-party workplace training companies that design and implement these programs for you at a cheaper cost.
Learn How to Improve Business Performance
Knowing how to improve business performance is your responsibility as a business owner or manager. Regardless of your industry, level of experience, or size of business, the strategies fleshed out above will help you get better results in 2024.
Start by understanding the mistakes you made in 2023 and then make smarter goals for the new year. You should also invest in good technology, train your employees regularly, and take steps to build a more positive environment for your workers. Additionally, ensure you have the right top-level managers assisting you.
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This article is published by NYTech in collaboration with Syndication Cloud.
