PREPARE YOUR BUSINESS FOR THE NEW YEAR
1. Prioritize reviewing your financial reports to gain valuable insights.
2. Settle Accounts and Assess Your Sales Cycle
3. Acknowledge Achievements and Learn from Mistakes.
4. Define Ambitious Goals, Innovative Strategies, and Clear Action Plans.
5. Position Your Infrastructure for Unlimited Growth
SOURCE: King, S. (n.d.). How to prepare your small business for the New Year. https://www.growthforce.com/blog/how-to-prepare-your-small-business-for-the-new-year
1. Prioritize reviewing your financial reports to gain valuable insights.
As the calendar year ends, it's essential to complete your year-end financial reports, including the income statement, balance sheet, and cash flow statement. Once prepared, analyze these reports and track your key performance indicators to assess your business's performance. Determine whether your numbers are trending up or down, understand the reasons behind these trends, and use this insight to inform your plans for the upcoming year.
2. Settle Accounts and Assess Your Sales Cycle
Before the year's end, make sure to settle your payables and diligently pursue any overdue receivables to maintain your accounts in good order. The fewer unpaid balances you have to carry into the following year, the more advantageous it will be.
In other words, assess the duration from when you provide a customer with an estimate to when you begin work for them and ultimately send out an invoice to see how long it takes to receive payment.
3. Acknowledge Achievements and Learn from Mistakes.
As you reflect on the past year, acknowledge your achievements and take the opportunity to celebrate, as well as to appreciate the individuals who played a role in your business's successes. Organize a holiday or year-end gathering to honor your accomplishments, show gratitude to your team, and recognize everyone's contributions.
Similarly, it's crucial to pinpoint the shortcomings of the previous year that showcase areas for improvement within your business. Treat these setbacks as learning opportunities that can help set more effective goals for the upcoming year while actively addressing issues within your organization.
4. Define Ambitious Goals, Innovative Strategies, and Clear Action Plans.
Creating an annual budget and goals before the new year is like planning a road trip. Just as you wouldn't embark on a long journey without a map and a clear itinerary, entering a new year without a strategic plan can lead you to lost opportunities. Having your route planned allows you to navigate the twists and turns of business effectively, ensuring you reach your destination smoothly and efficiently.
5. Position your Infrastructure for Unlimited Growth.
If you anticipate business growth in the upcoming year, it's crucial to think about the requirements that will emerge from that growth in your business.
For instance, will you require additional sales representatives, more service providers, or other types of staff to support your expanding operations? If that's the case, reflect on when you will need those individuals to join your team and how long it will take to onboard and train them effectively. Schedule your hiring so that your new staff members can be fully prepared right when you need them to start performing.
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