7 Things You Shouldn’t Overlook When Developing a 2023 Work Strategy
Starting a new year sometimes feels like hitting the reset button , except we’re working to improve on last year’s performance. The performance of the company according to the previous period will help us understand our scope for this new year.
The problem is that sometimes we create too many expectations and gather too many ideas because of the feeling of a reset button that starts a new year.
Different teams run a business, they can range from sales to management, even back office processes, everyone has new expectations! Everyone has new goals, parameters, ideas, etc. and, to be fair, it’s impossible to implement every idea.
What you need is to keep the focus on your industry, your customers, your knowledge, and your values. As a commercial distributor of kitchen equipment, you need a work strategy for this new period.
The focus is especially necessary when we are part of an industry that suffered greatly during the pandemic and continues to be battered by the supply chain crisis.
Let’s start by defining a strategy, according to consulterce.com , a strategy is; A high-level plan that helps a company achieve its goals.
Now, you don’t need to go as deep into your reason for being as a company, but you can start thinking about your annual goals, the innovation you want to implement, the product lines you want to launch, and even going all out in the digital world.
No matter what 2023 has in store for you, there are 7 things you shouldn’t miss when creating a business strategy as a commercial kitchen equipment distributor.
1-Understand your target market
Whether your goal is to provide equipment to high-profile restaurants or you’re more used to high-volume culinary projects like Ghost Kitchens, the important thing is to know your target market.
Considering your target market means considering how far you can go on their terms , you are the one who sets the limit. Now, you have to know that there is “setting the bar high” and “dreaming”. As someone who provides for other businesses, you need to aim high, but within your capabilities.
When considering your target market, always ask yourself these questions:
- What are the difficulties my clients face?
- How far geographically speaking can my company reach?
- What trends are my clients following in their business?
- How to categorize my clients? restaurant owners, sports bars, high volume projects, supermarkets, etc.
Defining your target market is only the first step, knowing your target market is what makes the difference .
2-Know your competition
Competition is natural in any market, it doesn’t matter if you are in Chiapas, Mexico or Quito, Ecuador, you will always find competitors. They are not bad per se , it is just natural and you will have to learn to deal with them.
Remember, your competitors are also eager to prosper during this year.
When creating a strategy, you have to know what your competition is doing, it is not about spying on it, but about following it, even getting to know it personally.
For example, you might start this year with a new line of stainless steel furniture, and your competition might be looking to build the small items business. There is an obvious difference between the two, but both solutions are needed in the food service industry.
The important thing is to develop a business plan, one that doesn’t gravitate around your competition, but rather consider your product offering and how you might manage market share.
3-Offer of products and services
It is important to determine the commercial kitchen equipment and related services that you will offer. At this point you need to answer the question: what is your product mix?
Are you focused on stainless steel fabrication? Are you a specialist kitchenware distributor? Are you a bakery focused distributor? Are you focused on fast food chains?
The types of commercial kitchen products you offer will determine much of your business management, the way you market, and even your customer service will be guided by it.
Once you have considered your products and services , you need to start thinking about innovation in your field , new technologies, trends, etc. This way, you will find the next steps to take.
4-Pricing strategy
Pricing is a really important factor for your target audience and is deeply tied to your product offering. How you decide to develop your strategy will have a considerable impact on your organization.
As a commercial kitchen equipment distributor, you could target a low price market, but this means competing with the domestic market, and as we know, imported products are priced a little higher than the domestic market, due to logistics and shipping costs. processes involved to obtain them, as well as their quality.
Or you could target a high-priced market where quality is an important factor, but the required purchasing power of each of your customers will narrow your target audience.
The way you do your marketing, your product mix, and a good understanding of your target market will help you understand how to determine your pricing strategy.
5-Marketing and sales
It’s typical to think of sales and marketing as different branches within your organization. One of them creates advertising and looks for lead generation and it is seen as an investment. On the other hand, the other team is seen as a field agent that generates conversions.
From our point of view, marketing and sales go hand in hand.
What you represent in your marketing channels is the same as what your audience expects from your organization and especially from your sales team. Just think, if you post an offer on social media and then your sales team contradicts it, it’s clear the customer won’t be happy.
Just as important, the marketing channels you choose have a huge impact on your lead generation ability . Social media, websites, trade shows, email marketing, and traditional print marketing all behave differently from each other and have different dynamics.
How you define your business image will define your social media channels.
It is important to know that not all social media channels are necessary for a business . Having a presence on all of the existing social networks is a huge effort for your marketing team, but as those efforts fade, their effectiveness in generating leads will also fade.
This new era of technology gives us the tools to measure and track the performance of your marketing and sales team. Do you have a lot of leads but only close a few deals? Or are you closing a lot of deals and only having a few leads? Digital marketing will help you measure this.
To close this topic, remember that your marketing team must nurture your sales team. Your sales team are your field agents, responsible for closing the deals and building that one-on-one relationship with the customer.
6-Financial projections
The business is meant to be profitable, from the investors to the owners and even the sales team expect profitability to continually improve their revenue.
A good income and expense forecast will help you understand your potential profitability and also identify potential financial challenges. This means that you need deeply analyzed information about your business.
Lack of detailed spending information will make it impossible for you to track your spending and lead to inefficient use of resources. Even if you are venturing into new projects, you would not want to waste your money without receiving anything in return.
And just as important as the previous idea, the lack of good income forecasts makes it difficult to correctly allocate resources. Budgeting, hiring, and business expansions are the areas most affected when you’re having trouble with your revenue forecasts.
7-Organizational structure and personnel administration
As we mentioned at the beginning, a new year is not about creating your entire company from scratch, although it feels like hitting the reset button, a new year means learning from your past successes and mistakes.
Looking back, you should be able to see the mistakes you made as an organization and the areas where you lacked performance capacity. He should also be able to see the strongest areas that have helped your business thrive.
The way your business is run is linked to your organizational structure . The number of leaders and staff you have in your business will affect your performance throughout the year.
How many leaders do you need? How many vendors do you need? How much staff is too much staff for your marketing team? Does the staff have workload problems? What positions could be merged into one?
Finally, remember to really consider the skills and experience your business needs , this will have a huge impact on how you perform as a business.
For some, experience is crucial, while others would prefer the power of the new generation. To be honest, there’s no right answer to this one, but it’s good to keep a balance, otherwise you’re either going to be either an old school team or a very new one.
What other variables would you consider in developing your annual plan? Leave us an answer in the comments!
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