In our last blog about making 2017 a success, we talked about setting goals for the type of work and clients that you want in 2017. To make that a reality, not only should you be looking forward to next year, but it is also helpful if you take a look back at this year so that you can implement a business plan for 2017 that will get you to your goals.
Some of the information that you might consider:
Identify the projects that your firm worked on this year. Print a list that shows what your firm worked on. Did you perform a lot of work for only a few clients? Was one client dominant? If so, one of your goals might need to be that you will pursue better diversification next year to protect against the possibility that the client goes out of business or stops using your firm for whatever reason. Did you work on a lot of small projects?
Identify the clients that you worked for this year. Who were your clients and how did you originally get them to be a client? You need to analyze whether you got work based upon relationships, competitive pricing, or expertise and reputation in the marketplace. A thoughtful analysis will show you what business development strategies have worked for you in the past and potentially where you have weaknesses that you can improve upon in your marketing plans for 2017. You may find that there is no return on investment in certain marketing activities that you are undertaking or may need to put some activities on probation for 2017 if you feel that they need a little more time to fully develop.
Identify the profitability of each project. Which of your projects were the most profitable and why? Which projects were not profitable and why were they a loss? If one of your strategic goals is to make more net profit, focusing upon projects or the process that made them profitable for you this year will inform you about the work to pursue next year. On the other hand, if you had projects that were not profitable, determine why. Was it because your proposal was too low, your client didn’t pay you, you had to perform additional unpaid work because of errors, or the project time were extended without adequate payment to you?
Who worked on the projects? Were they projects that you could effectively use a number of staff members on or did they require the experience or expertise of one or a handful of folks in your office? This is a factor you must consider if one of your goals is to grow your company. If other staff members cannot work on a project, it is not an area of work that will keep other folks busy anytime soon or you may need to enhance your training program for 2017 so that the projects can be staffed by others.
Did you enjoy the work? Think about each project. Did you like working on it or was it miserable? If it was a great project, why was it great? If it was unpleasant, identify how that could have been made better. Does that type of project somehow advance some of your strategic goals? As painful as it is, you may need to decline working on a similar project or for a similar client next year even if it will potentially impact your revenue.
A look back at 2016 may reveal some surprising information. As we are all caught up in performing work for our clients, sometimes our view about the work we have been doing is not as clear as we think. Taking some time to consider your 2016 is sure to improve the path to a great 2017.
If you have any questions, we would be glad to help you. The attorneys of Gibbes Burton are passionate about helping professionals and businesses minimize risk and build success.