In the course of the year, entrepreneurs can get consumed with loads of activities that it becomes difficult to keep track of all that’s happening.
The end of the year is the time when most business activities wind down, therefore, it’s a good time to pause, take stock, plan and take a position for the year ahead.
Here are 10 things to do to make that happen:
1. Review your financial statements (balance sheet, cash flow, income statement) and prepare tax returns.
You need to know:
- If your business is profitable
- How profitable your business is
- Where all the money that passed through your business in the year was spent
- How much the business owns
- How much the business owes
- Exemptions you can get on taxes
2. Review business expenses. Its important business expenses are directly linked to the bottom line of the business.
3. Compare financials from the year before to that of the current year. Pay attention to any rise or drop in figures, investigate reasons for them.
4. If you have made a very good profit for the year, this would be a good time to consider buying or replacing any equipment that will directly result in increased revenue.
5. Reconcile your goals for the year with your achievements; take note of goals you could not achieve. Also, be careful not to discard these goals instead try to find out why you were unable to, and devise new ways to go about achieving them.
6. List and celebrate major accomplishments, you can share with your staff, this should motivate them and make them emotionally invested in your business.
7. Reward your employees and customers, it does not have to be much, could be in form of bonuses, gifts, personal notes…
Also get in touch with your vendors/suppliers and inform them of any change in the business that might affect them.
8. Pay attention to your numbers; identify your metrics, this varies from business to business – website analytics, the source of customers, customer growth rate, customer return rate/retention, subscriber list, downloads, number of monthly orders e.t.c.
Identify patterns of growth in such areas, trace down these patterns to identify much bigger opportunities and devise ways to multiply effects of these patterns.
9. Review your systems, operations, and processes. This is a good time to review and update (if required) contracts, license agreements, and technology, Identify your strengths and work on your weaknesses.
10. Create a vision for the coming year, based on this vision, set goals, write down your action plan and ways you intend to implement these plans.
Hope these tips help you end the year with sufficient knowledge of your business even as you prepare and position yourself for growth and opportunities in the coming year.
How are you wrapping up the business year? Share your ideas with us here.