As we start a new year business owners will be filled with optimism and trepidation in equal measures. This is not something new as every year in business is filled with new challenges that you must face head on, but also with the confidence and belief that you will make the correct decision at key times.
At Pentagon Plastics we have prepared for 2015 over an 18 month period with a major £250,000 investment to develop the infrastructure whilst working hard on marketing the business to those companies that could benefit from the services that we offer. It’s all well and good after all offering an excellent service but if you don’t tell anyone then how will people know what you do and how will they seek you out to support them?
It is also an important time to review the financial accounts but not only the balance sheet and gross and net profit margins. These are very important for a snap shot of where you are, however to grow the business it is just as important to have a good feel for the finances on a day to day level. Your return on investments (ROI) and marketing spends are hugely important, as is monitoring who your new customers are and from what sectors. Don’t forget your existing and long standing customers though…..who is spending more? and on which services you offer? and just as important to know is which ones are falling away!!!
We manage our monthly accounts internally and 2015 will see a focus on reducing waste to increase our profit margin. If you see a healthy balance sheet and sit back in satisfaction it will only go one way over time without continuously looking to improve. If you understand your costs and have a program to reduce your waste you will see year on year improvement on your bottom line. This will allow the balance sheet to look after itself.
The look and feel of our business has changed hugely in recent times from the visual improvement for those visiting our manufacturing site to the enthusiasm and dedication that our staff deliver on a daily basis. Some will say that we are in a better position than most companies to be optimistic for the year ahead having traded successfully as a family business for the past 43 years, but this doesn’t guarantee you success – you have to try harder year on year to be innovative in the way you develop your business. As the world and markets around us evolve, a business has to have the right balance of proactive and reactive development. After all, one will not work without the other…..
It is possibly a fair point to say that a business that has traded for a long period has the experience to react to issues because the owners have seen them before, but the complacent business owner who only reacts will not be able to keep taking the business forward. Building and developing a business takes a special kind of drive, some would say an entrepreneurial spirit, where a proactive approach of calculated risk taking can keep a business ahead of its competitors. At Pentagon we are on second generation leadership and feel we have the right balance of people in key areas throughout the business who share the passion and drive that has proved infectious. This has seen us sustain steady growth over the last 10 years and so, as we head into 2015, we are filled with the optimism and trepidation shared by many businesses. However, we have a confidence that 2015 is going to be a year when our manufacturing operation reaches new heights within the plastic injection moulding sector of the Polymer Industry….
Look out for more of our blogs throughout the year on various business related topics and visit our website at www.pentagonplastics.co.uk if you wish to find out more about the services we offer. Thanks for reading…..