I can’t prove it yet, but I suspect that this past week, the one between Christmas and New Year, will be one of the most influential weeks for business owners.
Right now, most of them have collapsed in a heap, recovering from a turbulent year.
Either that, or they’re scrambling to keep the doors open, short-staffed and thrown by positive COVID tests.
Everyone needs a break, everyone needs time to breathe and reconsider their plans for 2022.
The best way to help people along this process isn’t with fancy answers, but better questions.
Here are some interesting questions to think about as you go into the new year.
My encouragement is to consider each one, even if you’ve previously had a quick and snappy answer for it in the past…

Where am I on The Dip?
The Dip is one of my favourite strategic concepts and diagrams, described by Seth Godin.
The core idea is that quitting isn’t necessarily good or bad, it depends on two things:
1. Do things get better if we keep going?
2. Are we willing to trudge through the hard times in order to get to the good times?
If you don’t think the situation gets better, or you can’t/won’t pay the price, then quitting makes total sense.
But if it gets good, and the good times are not too far away, then it’s worth persevering.
What does this picture look like for you?

Am I craving change or am I craving rest?
It can be tricky to separate fatigue from resignation.
Are you wanting a new direction, or a fresh battery?
They say “Change is as good as a holiday”.
Or are you in the right place, but in need of some new energy?

Do I want to be done or do I want to improve?
A similar question – when you think about potential areas for improvement, are you excited to get better, or do you just want to reach “good enough”?

What are customers asking for that nobody has built yet?
2022 brings new customers – they might be people you already know who have new desires and priorities, or they might be new people who suddenly have an interest or need for what you’re doing.
These are not the same as your old customers – they have new ways of shopping, new ranked preferences, new jobs to get done.
What will they be asking for?
What will they love but don’t know how to describe yet?
What new problems don’t have an elegant solution?

Can we reduce our overheads?
It is important to cut costs periodically, but not all cost cuts are the same.
For example, you can lower costs by buying/creating/ordering in bulk, but this drives up your breakeven point.
You can cut back on marketing and customer service, but this lowers your income in the long run.
Maybe a better question is “Can we swap overheads for variable costs?”.
This is where you trade out overheads, which cost the same no matter what, for pay-per-use costs that rise and fall in line with your sales.
e.g. at The Difference Incubator, we didn’t renew our office lease, and now pay by the day at a new co-working space.
So when lockdowns hit, our costs suddenly go down as well.
This isn’t the most profitable approach, but it reduces the likelihood of you making a loss.
In 2022, would you rather go for cost efficiency or financial stability?

What new technologies or practices are we ready to consider?
You’ve probably dismissed new technologies in recent years, but now is a good time to revisit those assessments.
e.g. using sales tools like MailChimp, social media platforms like TikTok and LinkedIn, remote working tools like Miro and Slack, etc.
The same goes for your work styles – is it worth embracing approaches like Work From Home or Work From Anywhere, using freelancers, changing how frequently you all meet in person or online, or even changing how you structure your day.
It might be one of the most valuable changes you make – deciding that your previous dismissal of these tools was short-sighted, giving your future self permission to make the most of them.

Can I start a new side project, making progress without burdening it with expectations?
I am a big advocate for making progress in secret – starting things quietly and showing them once they’ve developed a clear identity and a bit of momentum.
There’s probably not a lot of people out there who are excited to take a big risk in 2022 – but what about a small risk?
What about an experiment with low stakes and low expectations?

What am I still intrigued by?
If two years of lockdowns and disruptions haven’t dampened your enthusiasm for a project or a new idea, perhaps it’s a sign that you’d be a good entrepreneur?
What can’t you get off your mind?
What fills you with curiosity?

If I wasn’t in this business and had some money, what sort of business would I establish?
I like this question because it gets us out of the “sunk cost” way of thinking.
If you magically had your business sold out from underneath you, so you had the money but not the company, what would you do next?
Start a new business?
Start the same business?
Do something totally different with the next part of your life?
What does your immediate reaction tell you about yourself?

What roles am I ready to pay more money for?
As your work changes, you’ll probably find that some roles within the business need to be handled by an expert.
Which roles benefit from a pro?
Where does paying more get you a substantially better outcome?
Are you ready to bite the bullet and spend more to free up your own time or to improve your operations?

Is the most lucrative option to stay the course and rebound with strength?
Maybe you don’t need to pivot, maybe you need to stick with it and benefit from a less competitive field once things stabilize?
Is there a chance that you could emerge in 2022 as one of the strongest in your category?
Is there a vacuum left by departed rivals?

What are some “Buy Low” opportunities on the horizon?
What do you feel is currently under-priced?
What’s on sale in 2022 that won’t be this cheap or accessible in the future?
This might be a time to pick up some bargains that won’t be available for long, if you’ve got patience and spare money today.

Am I interested in changing the proportions of our sales channels?
Most companies have multiple sales channels – retail stores, wholesale partnerships, a website, social media platforms, apps, etc.
I usually see one main channel, then a few other side channels with a 70-10-10-10 split.
Post-lockdowns, are you thinking it’s worth changing that split?
Which channels deserve more deliberate attention and energy?
e.g. creating content specifically for each platform, or hiring a specialist manager for your online store, or actively creating new partnerships with stockists.
You might not need to cut these channels, but it’s helpful to deliberately choose how much to invest in each one in 2022.

Would I rather 5,000 more followers, or two major customers?
A tough question – what was your initial answer?
Why did you choose that one?
What’s the story you told yourself about how that choice would best help your company?
I don’t think there’s a wrong answer, but I do think new businesses over-value followers compared to momentum and revenue from two genuine customers.
How hard is it to obtain each of these on your own?

How might I recharge throughout the year?
Surely you’re not intending to go the whole year without more downtime?
How might you scatter rest periods throughout 2022, to prevent burnout and refresh your team?

What are some 10-year bets I’d be confident to make today?
Everyone is thinking short-term at the moment, but what are some long term bets you’d be happy to make?
What do you suspect is likely or inevitable in the future?
Do these forecasts have some natural implications for how you want to work in the next two years?
e.g. learning new skills, launching new projects, forming new relationships, designing new products and services, etc.

Is it time to change the titles and labels I’ve attached to our brand?
Having two years’ worth of disruption, this is a great time to re-position your company without seeming strange or pretentious.
This might be a move to a higher price point, a new value proposition, a new market segment, or a new framing for how you’d like to be perceived.

Is it time to change the titles and labels I’ve attached to myself?
As above, re-invention is hard, but since everyone is distracted, you can change how you present yourself without fear of being called-out as an imposter.
More importantly, you’ve had two years’ worth of improvement, so you’re probably not an imposter any more.

Where have we worn out a cheap solution that warrants being replaced with a proper solution?
People did what they needed to in order to get through 2020-21.
They set up scrappy home offices, fumbled through remote work, held events online, formed new habits and routines, and did what they could to keep their customers happy.
Adam Savage has a suggestion for people buying tools and equipment – buy they cheapest ones you can get, then when something breaks or wears out from use, replace it with the best version you can afford.
This is genius, since you put your money into the tools that get used, not the ones which gather dust.
What’s your equivalent?
What has been worn out, and deserves to be replaced with something of higher quality/functionality?

Enjoy your New Year!