By: Ruth King
Like our profit and loss statements, we get to start over. 2020 is done. It was an insane year. We have many lessons learned from this past year which we can incorporate into 2021.
Here are some activities that will help you take advantage of 2021, whatever happens economically.
- Save cash.
The companies who survived had cash in savings. Even companies who got PPP loans had to survive for 3 months without them.
It’s easy to do: Put 1% of all revenue that comes in the door in a savings account. And, if you are on monthly recurring billing for your maintenance clients, instruct your credit card company to put that money in an account that is NOT your operating account.
Then, when it is large, don’t get tempted to touch it. That cash is your rainy day fund for emergencies such as we went through in 2020.
- Reactivate your inactive customers.
Make a list of all customers who have bought from you in 2019 and 2018 but did not buy in 2020. Contact these customers and give them a reason to buy in 2021. Contact might be through a postcard, a letter, or best, a telephone call.
You might start the phone call with, Ms. Customer, thank you for using our company’s products in the past. I probably don’t want to know the answer to this question, but I need to know the answer.
Then pause…usually you’ll get a laugh.
Then ask this question: I’ve noticed that we didn’t do business with you in the past two years. Did we do something to make you mad?
Then resolve the issue and see whether you can get the person back as a customer.
- Share a piece of your profits with your employees.
These are the people who help your company survive and thrive. Let them earn a small piece of the profit when the company reaches its sales and profit goals. Put a year-long contest in place and track results every month. Everyone will be more committed to helping customers and internal team members.
I wish you a safe and prosperous 2021.
Ruth King is known globally as the “Profitability Master,” and is a a thought leader in entrepreneurship and business. Her books have been recognized as among the greatest in numerous industries. Learn more about all her business activities here.