As we guide our clients through the uncertainties of 2024, the question of strategic positioning is paramount. We asked Financial Analyst, Taylor Weber to share her insights on how to set your business up for success this year.
Question: “How can we strategically position ourselves for success in 2024, and what key factors should we prioritize?”
Taylor Weber: This is a very important question and one that we are asked a lot by our clients, especially during the first month of the year. Establishing a solid budget and goals for our clients heading into the new year involves a collaborative effort and an evaluation of qualitative and quantitative factors, particularly considering the unique circumstances of what post-COVID looks like. It is crucial to recognize that comparing historical operations to the anomalous years of 2020-2021 might not be practical. The industry is transitioning into what appears to be a post-pandemic “normal,” with 2024 resembling a more stabilized state of operations.
Amidst these considerations, the key factor to prioritize in 2024 is monitoring your market share along with analyzing changes that may have impacted your business. Understanding your market position provides valuable insights into competitiveness and allows for strategic planning.
For instance, if there is a recent downturn in volume, assessing the broader market helps determine whether it is a widespread trend or if you are losing families to competitors. If the entire market is down, we can budget for a low-volume year by adjusting prices to build the top line and finding areas to have disciplined expense management. Conversely, losing market share indicates a need to allocate resources strategically to reach new demographics and explore untapped opportunities. For example, based on your market position, strategic adjustments might involve enhancing your community engagement, adapting service offerings based on consumer preferences, focusing on preneed sales for future business security, collecting receivables, optimizing staffing based on market demands, evaluating the effectiveness of your current market strategy, and identifying opportunities for technology adoption or staff training to enhance efficiency.
By tracking market trends, you gain the anticipation needed to adjust your budget and business strategy accordingly. This proactive approach enables you to weather potential downturns, navigate industry changes, prioritize resources, and capitalize on growth opportunities.
Monitoring your market share in 2024 is pivotal for staying informed about market trends and making strategic decisions. We assist our clients by creating a realistic budget, anticipating potential challenges, and positioning their business for success in the coming year. By doing this, we help them to stay ahead in a competitive landscape.
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