Prepare Your Business for a Profitable Year

Your business isn’t static; it changes over time. Assessing where you are and where you want to be should be an annual activity. As the new year begins, consider whether any of the following aspects of your business could benefit from an update. Then consult your financial and tax professionals to learn more about how you can increase profitability.

Cash Flow Projections

Running low on cash can jeopardize your business’s ability to meet expenses and achieve goals. By estimating monthly cash inflows and outflows, you will have a realistic picture of your business’s financial outlook. Follow through by tracking income and expenses throughout the year and making adjustments when needed.

Help from Technology

You may be able to increase your business’s productivity and profits by using business software. Automating key activities, such as customer relations, finance, inventory and human resources, saves time and allows you to focus your energy elsewhere. A website that drives business is also essential in today’s business climate. Engaging professional help with website design, content generation and social media presence may make your business more competitive.

Performance Goals

Bringing employees on board with company goals is the purpose of a performance management plan. Establish criteria for linking an employee’s work performance and earnings to specific milestones that reflect the goals of your business. The plan also can help you identify training needs, make objective staffing and compensation decisions and spot talented employees.

Written Procedures

Your business may have an unwritten set of procedures that you and your employees follow automatically. But what about new employees who join your company? Standardized written procedures can serve as a guide for both new and current employees. If your company doesn’t have its business practices in written form, consider making this a priority in the new year.

A Strategic Plan

The new year is a good time to develop a strategic plan or to review and update an existing one. A strategic plan outlines your business’s future goals and describes concrete actions you can take to achieve them. At a minimum, your plan should include a description of your business, a mission statement, an analysis of your company’s strengths and weaknesses, and your vision for the future.