Saturday 14 January 2012

New Year Business Resolution or Revolution?

New Year Revolution?

2011 is behind us but what lies ahead for tourism? Will 2012 fare better, worse, the same or have we now moved into a new paradigm that changes how we do business? The start of a new calendar is always a good time for considering the future and reviewing the values we hold about work and life in general. More fitness, putting family before work and work-life balance are the usual resolutions but how long does this good intent last?

2012 for hotels and venues will certainly be challenging and the start of the year might just be the time to think about the values we hold in business, perhaps to revue it, make a paradigm shift and change it for the better. Here are five thoughts to focus upon below:

1. Analyse each profit area of the business. Calculate how much effort and money is spent on each area; which is the most profitable; what will make it more profitable; what is most wasteful; if an area is not profitable what needs to happen to make it so or should it be dropped?

2. What are the REAL costs of each area? How can costs be reduced? Put a focus on something specific to determine the real cost and it is amazing how much costs can be reduced.

3. Think about a sales and marketing health check. The famous line 'half of my advertising works, I wish I knew which half' may no longer apply. There are more systems than before to measure the outcomes of sales and marketing activity. Google Analytics is just the start. Tracking systems for every area of the business can be employed including website and call tracking, conversion attribution, tactical targeted campaigns and so on...

4. Check training for sales and review cost control – are these included in the business plan? So many opportunities are lost when employees are not trained in sales, have poor attitudes and 'sales prevention' prevails. Similarly, the costs of a business rise because there is a lack of awareness of the cost of equipment, breakages, poor staff planning and so on....

5. Question each outcome. Is it luck, judgement or planning and setting goals in advance that make it work? More likely the latter.

Make the paradigm shift today - "If you always do what you always did, you will always get what you always got!"