As the year nears its closing, remember that to determine where your business is headed, you first have to take a look in the rear-view mirror and evaluate where you’ve been. Now is the perfect time to conduct a year-end business review to examine your company’s performance over the year, analyze your metrics, identify successes and losses, and weigh all of this against your previously set goals. Then you can use this data to assess your business’s health and jump into the new year with fresh insights and fresh goals. Here are a few key things to consider during a year-end review.
Compare Results Vs. Goals
Reviewing your business performance means comparing real outcomes against pre-set goals. Were your actual results in line with the target goals you set for your business at the start of the year? Did you meet your key performance indicators? Which projects, departments, or revenue streams saw the most success?
You may have some goals that you met exactly, some you exceeded, and others where you fell short. Comparing goals to end results will help you identify areas of success and opportunities for improvement, which you should use as inspiration when you map up next year’s goals.
Celebrate Your Wins
Once you’ve compared your goals and results side by side, take the opportunity to celebrate the achievements and accomplishments you met this year. It can be easy for small businesses to always be looking for ways to change, adapt, and improve, but recognizing the wins, big or small, is just as important. These wins help propel you into bigger and better aspirations and accomplishments. However you decide to celebrate, make sure you share these business wins with your whole team!
Identify Ways You Can Improve
In areas where you may have fallen short, it’s time to get back to the drawing board. Maybe you didn’t quite meet your revenue goals, or your project timelines got behind schedule on a regular basis. Less than ideal results can sting, but now that you’ve identified them, it’s time to brush the dirt off and look toward the future.
Use these “losses” as an opportunity to brainstorm with your leadership, employees, and all team members for ways in which you can improve. An organization only runs its best when everything and everyone is connected from top to bottom.
Conduct a Financial Analysis
Using financial statements like your balance sheet, income statements, expense reports, tax returns, etc., you can put together a financial analysis that will determine your profitability, cash flow, and overall financial performance. A strong and healthy financial foundation is one of the most critical areas of running a small business and sets the stage for all other metrics to become possible. Financial analysis can be overwhelming for some, so reaching out to a banker or other financial professional can be an extremely helpful tool.
Get a Head Start on Your Plans for the Next Year
Once you’ve reflected on the year, your successes, shortcomings, your goals, and your metrics, it’s time to focus on what’s next. Maybe you decided to completely scrap certain goals and go a different direction, and you might have some great successes that your ready to build and improve upon. Whatever those goals may be, be sure to plan strategically. Record these goals and metrics in detail and develop strategic action plans to achieve them.
And as always, reach out to one of us at Republic Bank to help you get started and stay on track. Contact us today by calling 800-526-9127! Plus, find more financial tips and resources here.
