In December 2007, I penned an article for SitePoint, 10 New Year Resolutions to Boost Your Business. You can read the article for all the details, as well as download a handy wall planner to stick near your desk. You’ll find that it’s still as relevant today as it was when I wrote it.

The ten resolutions, in short, are:

1. start setting goals
2. ask a client for a referral
3. focus on profit, rather than turnover
4. learn something new about business
5. take time for yourself
6. create products that generate income
7. delegate effectively
8. focus on client service
9. take time to wander the Web
10. build rock-solid procedures

Read the article for the full details on each of these resolutions. The start of the calendar year is perfect for us to look at implementing the first one: goal setting.

Setting goals helps filter all of the thousands of thoughts and ideas you have into a list that’s far more manageable. High achievers in every field from sports to business consistently suggest that goal-setting is an invaluable part of the process. Goals can help you define your objectives and understand what’s important to you, motivate you towards achievement, and build your self-confidence.

So what is a great goal?

Many people use the acronym SMART when creating goals, as well as for other project management methods. SMART stands for:

Specific
Ask yourself if the description of the goal is precise? A plausible goal is very specific and easy to understand. Goals such as “increase amount of clients” or “make more profit” are too vague. Instead, use specific language, such as “add three new clients to portfolio before end of March” or “increase average profit on all jobs by 5% before middle of the year.”

Measurable
Does the goal explain how you’ll measure results? A solid goal has a measurable outcome, so that you’re able to determine if you’ve achieved it, and it helps you stay on track. Hence why I used very specific terms, like 5% profit increase or three new clients. This helps spur you on towards your goal, assuming the goal is attainable.

Attainable
Is the goal possible to achieve, with some effort? If you set far-reaching goals, you may be unable to commit to realizing them; for example, “increase turnover by 1000% within three months” is probably way beyond your current means. However, the goal should require some effort; for instance, “wake up each day before lunchtime” is easily achievable for most people, and so is unworthy goal-wise.

A proper goal should stretch you slightly so that you need to be committed, yet should also feel attainable. “Increase client base by at least two per month for next six months” is a goal you’d possibly need to work hard to reach, but is still feasible.

Realistic
Ask yourself: do you have the power to control the results? You need to feel that you can reach your goals, and that you have an influence on them. Having a goal like “co-workers to be nicer to clients” is, fundamentally, out of your control, even if you are the boss. A better goal would be “run monthly workshops for employees that focus on client service.”

Timely
A concrete goal has a deadline. It may be as limited as the end of next week, or as long as the end of 2009. Deadlines help you manage your time towards achieving goals. Without a deadline, the goal will appear to be unimportant and never happen. Set a realistic deadline, with a suitable time frame.

It’s a good idea to limit yourself to just a handful of short-term and medium-term goals. Writing an exhaustive list of everything you would like to complete before you leave this earth is a sure way to de-motivate yourself.

Set some goals today, and look forward to a more productive year ahead!

This post first appeared as part of Issue 428 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

There’s been much talk about strategies for businesses to survive the uncertain economic climate. The media every day are reporting massive layoffs and industries in turmoil. In these times, it’ll be all too easy for most businesses to feel the effects of the crisis, so what can we do?

One of the major scenarios we’re already seeing in some industries is the domino effect of a large company hitting the wall; this in turn affects their suppliers, who then suffer, affecting their suppliers, and so on down the food chain.

What is immediately obvious here is that there are two actions we need to take. I also note that these should be part of standard business practice, not just for uncertain times.

The first one is control costs. Most organizations can identify a few areas where some small cost savings could add up to a sizable percentage of their bottom line. Look for savings in bank fees, transport costs, telephone and bandwidth, office supplies, and the like.

Secondly, manage cash flow.

If your clients hit hard times midway through a project, you could be left wearing the debt. Make a habit of invoicing smaller amounts more frequently, based on project milestones or calendar months. Keep on top of recalcitrant debtors — if you start chasing them the day after the bill is due, it trains your clients to know that you mean business.

Chasing your debtors consistently means you’ll have their payment sooner, and it’ll be less likely they’ll become a bad debtor.

This post first appeared as part of Issue 428 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.

Should you offer services or products?

The old phrase, The grass is always greener … is often heard when discussing the merits of services versus web-based products. Listed below are some of the advantages and disadvantages of both models. Which ones apply to you?

Products — Advantages

• gives you unlimited income potential, because time constraints are minimal (unlike selling services)
• enables lower prices for the consumer, as costs can be amortized over more customers
• allows you to concentrate on building one main project, rather than several small ones
• presents a choice of different revenue models, which are simpler to modify over time
• affords a better opportunity for residual income, in continual license fees
• provides an easier option to sell as an ongoing concern than a small web service does.

Products — Disadvantages

• requires more upfront investment in time and possibly money, especially the marketing aspect
• presents the possibility of competitors creating similar products and competing directly with you.
• necessitates market research to avoid ending up with little or no customer base.
• runs the risk of fielding more support queries than anticipated
• may delay long-term growth because of the lack of immediate cash flow

Services — Advantages

• generates income faster, because it’s easier to sell your services than a brand new product to the marketplace
• provides scope for a variety of projects, maintaining your interest in each new project
• offers more versatility in meeting market demands, rather than having to rebuild a mature application

Services — Disadvantages

• reduces your capacity for income, because it’s based purely on how much you can charge and how many staff you need
• limits short-term growth; for example, hiring staff is more time-consuming than bringing a new server online
• makes you more vulnerable to market buoyancy than product licenses

Also remember, as Dave mentioned, that it’s very simple to have a hybrid model of both: sell your current services while developing and offering products as well. This is similar to how businesses may sell hosting, stock images, and CMS licenses.

This post first appeared as part of Issue 424 of the SitePoint Tribune, a very popular email newsletter that I am co-editor of. Thanks to SitePoint for allowing me to reproduce the work here.