As autumn approaches, most small business owners are looking for ways to improve their fourth quarter as well as making plans for the next year. If you are in that position and would like a checklist of some ways to work on this project, here are some things to review.
Finances
More than ever it is important to keep an eye on cash flow. That means keeping the books up to date daily or at a minimum weekly. By watching receivables and expenses, you will have a better feel for the financial health of your company.
Goals
This is one of the most difficult tasks. For example, you want to make more money. The two basic ways are to increase sales and profit and to reduce expenses. Say you choose to increase gross sales. To be effective, you need to be specific, like increase gross sales by 20%. Then you need to decide whether you will hire more sales force or implement technology like VoIP (Voice Over Internet Protocol), or drive more business through website conversions.
While this is extremely complicated, it is probably the best investment in your time each Fall. Understanding where you are and where you want to go can be a game changer.
Trends
In 2020 almost all businesses showed a marked increase in online sales and personal shopping with curbside delivery. Actually every year has its own movement within various industries and businesses, local communities and even globally. Keeping abreast of issues and events even in an ordinary year will give you an advantage to plan your company’s reactions.
Best Practices
This is your industry or profession’s gold standard of operation. This is a combination of guidelines, ethics and practices that have found to be the most efficient, or most sensible acts and accomplishments. Involving your employees and staff can give the small business owner a different perspective. It can involve a change in technology or creating a more cohesive atmosphere, and everything in between. By being open to new concepts and opinions, you can improve the results of your operations.
Motivation
A workforce that is motivated can greatly improve the performance of your company. Active listening is critical as well as taking in all opinions regardless of position or longevity with the company. The two critical factors for the business owner is keeping an open mind and the ability to accept change.
Limitations
Knowing where and when to stop is vital. Far too many companies have taken a nosedive when they expanded too soon or too rapidly. Another example is recognizing your own inadequacies or shortfall and finding ways to capitalize on that problem. If you are great at ideas but not at sales, implement someone to drive that side of the business. One of the most efficient ways is to find a company to handle your bookkeeping and accounting processes. This is one area where many small businesses lag because of the volume and tediousness of the job.
For more ideas, contact us at Capex CPA in Brampton, Mississauga and surrounding areas. We have professionals who can help you develop the best plan for the balance of this year and to look forward to the next.
Contact your Accountants today click on this link —> https://capexcpa.com/contact
- The Capex Team