Business owners need to remember that growth doesn’t just happen. It happens because you know your strengths and weaknesses, and you capitalize on the strengthes while tackling the weaknesses. The end of the year is a great time to reflect and plan for the year ahead.
Below are 10 ways (besides tax planning) that you can use to end 2015 on a positive note. All you have to do is let your accountant know ahead of time that you’d like to learn more about these topics; if they won’t help you, ask us for some advice or a referral to someone who can help you learn more.
Below are 10 ways (besides tax planning) that you can use to end 2015 on a positive note. All you have to do is let your accountant know ahead of time that you’d like to learn more about these topics; if they won’t help you, ask us for some advice or a referral to someone who can help you learn more.
- Review year-to-date results, compare them with last year, and develop an action plan for 2016.
- Learn more about key performance indicators (KPIs) or key financial metrics for your industry, and begin tracking those for your business.
- Benchmark your results against industry peers.
- Schedule quarterly meetings in 2016 to discuss financials in the context of improving profitability, sales, cash flow or all three.
- Learn how to protect the value in your business. Whether you’re planning to sell, pass along to heirs or simply generate enough in coming years to walk away, accountants can help you figure out what to do now to make it happen.
- Develop a SWOT (strengths, weaknesses, opportunities, threat) analysis of your business and use that to develop 2016 plans.
- Identify the resources you have to grow your business without experiencing cash shortages.
- Discuss your banking relationships and whether there are issues that you’re worried about fulfilling, including getting help applying for a bank loan.
- Examine your return on investment from recently purchased equipment, recently hired employees or recently added business lines. Does it meet your expectations?
- Analyze your planned purchases, hires or business changes. Will they provide good returns?
With just over six weeks left in the year, you still have some control over 2015, and you certainly can change the course of 2016 with a little planning and financial information.
