As the new year approaches, there are some things you should consider doing for your business. By using knowledge gained over the past twelve months, you can help position your business for success in the upcoming year.
Here are some ways to help prepare your business for the new year:
1. Review Your Business Plan
When you started your business, you likely created a business plan. However, as time progresses, your business plan may need to be updated. Re-assessing your business plan can help you understand the progress you made over the last year. Take a look at all areas of your business to identify ways you can improve and change. You can then use this information to set goals for the new year. It is helpful to create SMART goals that are specific, measurable, and achievable. You don’t want to set goals for your business that are not possible with your current resources.
2. Take a Close Look at Financial Statements
As you close out your finances for the end of the year, pay attention to your financial statements. When you study your financials, you can identify areas that may need special attention, such as cash flow, expenses, or profitability. Closely reviewing your financials also gives you an opportunity to compare your finances year over year. If you are not certain about the best way to improve your finances in the new year, consider consulting an accountant or business financial advisor to help you gain a more detailed understanding of your financial outlook.
3. Create a Budget for 2024
The end of the year is a great time to review your annual budget and make adjustments. If you don’t have a budget at all, now is the time to create one. A budget allows you to estimate your future income and expenses for the coming year. Breaking down your budget into specific categories can make it easier for you to track spending throughout the year. For example, you might consider creating specific budgets for expenses like marketing, payroll, utilities, office supplies, and travel expenses. Once you solidify your budget, you should review it with your key employees as well.
4. Assess Your Marketing Plan
Consider your sales and marketing strategies for the coming year. What worked over the past twelve months, and what didn’t? You may want to adjust your marketing budget, experiment with different advertising channels like social media and email, or update your website or brand messaging. No matter what marketing initiatives you earmark for the new year, be sure to create a system to track and measure their success.
5. Review Employee Performance
Year end is an ideal time to assess the skills of your team members. You want to understand the roles they are in and ensure their skills align with their job. Any gaps in their skills could potentially be addressed with training or development programs in the upcoming year. Be sure that each employee is being adequately utilized and not stretched too thin. It is critical to find the ideal balance between resources and talent for your business.
The end of the year can bring closure for many aspects of your business. It’s the ideal opportunity to assess and adjust your business practices so you can start with a clean slate in the new year. If you’re a business owner in MA or RI who’s looking to start off the new year with a conversation about business financing, cash management, payroll solutions, or expanding your payment processing options, don’t hesitate to contact us today!