Sean Manning is CEO and Founder of Payroll Vault Franchising LLC, as well as a CPA and Thought Leader in the Financial Field.
A famous proverb says that the best way to eat an elephant is “one bite at a time.” This wry saying is also a poignant lesson that the best way to deal with a large job, challenge or problem is to do it slowly, steadily and in stages.
As the co-founder of a payroll service franchise, I see the wisdom in applying this lesson in business—and what a good idea it is when business owners look ahead to their plans and goals for 2024. Planning for an upcoming year is a solid business practice that many companies and organizations do regularly. However, it can be an overwhelming task when looked at in its entirety, especially for small-business owners. That’s why my advice to entrepreneurs thinking about what’s to come in 2024 is to take it one step at a time.
Looking Ahead
From my observations, the economy in 2024 is likely to experience slower growth and may very well lapse into a recession. According to a report from global nonprofit think tank The Conference Board, economists forecast the growth of the United States gross domestic product (GDP) will slow from 2.2% in 2023 to 0.8% in 2024. The average personal consumption expenditure (PCE) inflation for 2024 is forecast at 2.4%—lower than what it’s been for most of 2023 but still above the federal target of 2%. Interest rates are also on the rise; as of September, the U.S. Federal Open Market Committee (FOMC) is maintaining a target interest rate of 5.25% to 5.5%, the highest rate in over 20 years. This results in many businesses cutting spending wherever possible.
Access to labor is also proving to be a problem. According to an October report from the U.S. Chamber of Commerce, hiring has outpaced resignations since November 2020, and the latest data shows there are 9.6 million job openings in the U.S., but only 6.4 million unemployed workers. Going into 2024, the lodging, travel and food service industries are likely to experience reduced demand, as factors like financial inflation make price increases an unfortunate necessity. However, not all industries are at as much of a risk of taking a hit. Personal services and business services are poised to see more opportunities and growth.
The Goal-Setting Process
With a turbulent economic outlook for 2024, business owners should plan ahead to make the best of the year. And from my experience as both a business owner and a member of the financial industry, I recommend approaching 2024 with small-scale, attainable goals. The uncertainty of the economy in 2024 means the year is going to be risky for pursuing far-reaching, high-stakes business goals that require large investments of time, money and effort, so I don’t recommend doing so. Now, some risk is unavoidable and no progress can be made without it. But for 2024, I advise business owners to only take calculated risks and ones they can afford to lose in the short term if goals are not met.
When setting small, attainable goals—or any goals for that matter—business owners should make sure to do their due diligence. They should thoroughly document their goals and their plan for pursuing them, make sure to communicate with their staff and business partners throughout the process of setting and pursuing these goals and take an active role in the management of them with relatable projects that can validate progress.
The first step I recommend is setting an end-of-year meeting for 2023 with staff and business partners. This will give everyone a chance to go over the historical information for the business and determine what can be reasonably achieved in a year. I also recommend setting one to two long-term goals for the year, which can be further divided into smaller relatable quarterly projects that can be supported by weekly or monthly action items.
Some business owners, particularly new ones, may lack the experience to confidently determine what their business can achieve in a year’s time. If that’s the case, consider hiring a consultant, advisor or mentor to assist with the goal-setting and goal-management process.
The next step is delegating the smaller projects within the long-term goals for 2024. Determine your individual employee’s capabilities and set up teams to work on short-term projects. When properly set and managed, a team should be able to pursue two to three of these short-term projects concurrently.
Lastly, business owners should maintain communication with their staff on each team to make sure the work goes smoothly. They should check in with their teams at least once a month, if not weekly. They should see measurable progress on each team in about three to six months. If problems come up, business owners should be prepared to take direct action, whether that’s reassigning staff, securing more funds or resources or adjusting milestones and expectations.
When the end of one year and the beginning of the next draws near, it’s normal for business owners to start thinking ahead. Making plans for an entire year can be intimidating; there’s a lot that can happen and a lot that’s difficult to anticipate or predict. But business owners shouldn’t let themselves become overwhelmed into indecision or inaction. Trying to take on too much at one time is stressful and a recipe for disaster. Business owners should collaborate with staff and partners, divide large tasks into smaller ones, delegate jobs to the people qualified and communicate to make sure things go smoothly. In short, business owners should tackle planning for 2024 like a person would handle eating an elephant: one bite at a time.
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