Critical Considerations for Growth in 2016 (Part 1)
According to Strive Masiyiwa’s analysis, the global stock market has lost over $2 trillion US Dollars in just one week. Also according to the BBC, oil prices have fallen by 70% in the past 15 months with current price below $35 per barrel. Analyst have predicted a further decline in global oil prices which. What does this mean for businesses: “adopt a different approach to business”. Some few considerations:
Do more with less: Pay Attention to Your Cost Base
The first and general reaction of businesses in difficult and challenging operating landscape is to downsize. I’d rather advise you first review your business processes with a view of eliminating waste and doing more with less. This idea can be likened to the Lean Six Sigma methodology. Skipping the nitty gritty of the methodology, the basic idea is to leverage on digital tools across your business processes. For example, you can replace your paper invoicing and receipt system with a digital system. A typical small business spends roughly 50k per year on the paper system. This might not seem big enough savings in 2015 but in 2016 every cent counts. If your customers complain about not receiving paper invoices or receipts, tell them you are helping to protect the environment (we all know about climate change issues) and you’ve gone paperless.
Do more with less: Increase marketing activities that are measurable
It’s no news that consumers are increasing their activities online and spending more time on social media coupled with the crazy growth of Mobile and new developments in Internet of things. Businesses CAN NO longer ignore digital. It will be an absolute disaster for brands in 2016 without a digital strategy. Already industries are being disrupted by amazing innovations hinged on digital including UBER and Zenefits. One of the biggest advantage of digital over traditional marketing is the ability to measure results based on set objectives and match conversions to the bottom line (revenue). Businesses that will grow in 2016 will market smart and be able to account for every marketing kobo spent.
