You have created your budget for the New Year.
You have finished your year-end process to close out your books.
You have now made it to the next step. Yes there is a next step in the process; there is always a next step. The next step is evaluating your business – where is it right now and where do you want it to go.
Where is your business right now?
This is not a step to be taken lightly. This is the first step in truly evaluating where your business is. There are a few possible outcomes – not growing at the rate you would like, staying at status quo, or growing beyond what you had expected.
All of these options involved taking a deep dive into your financials. Knowing your numbers – evaluating your numbers – crunching your numbers. This means knowing where all of your money came from – which departments are excelling and which ones are a burden on the others. This means knowing where are you spending your money – what your cost of goods sold and expenses are. This means knowing what both your short and long term debts are. This also means knowing your Accounts Receivables.
All of these options also involve taking an in-depth look at not only your financial resources but your human resources. Do you have all of the right employees in the right positions? Are those employees properly trained to provide the level of customer service your customers have learned to expect? Are there processes and procedures in place to ensure proper training and job completion? Your employees are the greatest resource your business has available to it. They along with you – are what create the social environment for your business. Don’t discredit them or yourself – evaluate and utilize them to the fullest potential at all times. Create an environment that welcomes confidence and advancement.
But above all else it is knowing and learning limitations, not only for yourself but your employees. Realize when you have reached your level of expertise. Realize when you need help. Business owners from the day they open their doors are basically expected to know everything – it’s when you realize that you don’t that you open the doors to new opportunities and learning. This in turn creates new paths to profitability.
It is completely up to you!
Above you have learned:
- Where your business is financially
- The impact your employees have on your business
- What limitations are restricting your business
The next step is the most critical step if you want to move your business forward. It is taking the information you have learned and using it. What exactly do I mean by that – if you don’t understand what your financials are telling you – learn. If you don’t know if you have processes and procedures in place to train your employees – find out. If there are areas where you need help – get it.
There is such a wealth of information available at our fingertips at all times, there really are no excuses. You can learn just about anything you want from just Googling it! As business owners we all do it, we Google it. But the biggest problem with that is it may not tell you all that you need to know – it may tell you what you need to do but it doesn’t tell you why you’re doing it or what the logic is beyond it. Don’t get lost in quick fixes!
Too often those quick fixes can be disastrous for business owners. Not fully understanding the – what and why can create major issues throughout the entire business – what one area does has an effect on all of the other areas. We see it all the time.
When listening and reading about all of the greats out there in the business world what is the one commonality between all of them? They either have or had a mentor to assist them to get where they are today. You don’t have to go at it alone! Our mentors are ready to work one on one with you to help you reach your goals.
The SmallBizRising Blog is designed to be an educational content hub pulling information, best practices and practical advice for the small business owner and features topics including accounting, marketing, technology and more. Be sure to subscribe to stay up to date with new content as it is posted. The blog was created by The Neat Company and receives contributed content from a group of contributing companies that provide technology, services and solutions to small businesses.