New Year Business Planning: 9 Tips to Get Your Business Ready

Business planning is a great way to spend the downtime many businesses have at the end of the year. Use these nine tips to get your business ready to start off on the right foot next year.

Planning your business may not sound like an activity you want to pursue during the holidays, but if you’re in a business that slows down at this time of the year, planning may be the best way to spend your time.

Business planning at this time of year is especially important if your business has suffered a downturn or even if there’s been a sudden increase in business. In either case, you need to look at trends and consider whether they’ll continue and how your business may need to change as a result, which is where annual plans come into play.

While it may be tempting to kick back, relax, and let things go during your slow season, savvy business owners and consultants know better. They use the end-of-year slowdown as an opportunity to take stock of what’s happened during the past 12 months and make plans for the 12 to come.

From getting your finances in order to shaping up your staffing, let’s talk through some of the most important business planning activities to do now if you want your business to be ready for the New Year.

The Importance of Annual Planning for Business Owners

Annual planning is a cornerstone of business success. For business owners, it’s an opportunity to set a clear roadmap for the year ahead, outlining specific business goals, objectives, and strategies to achieve them. By dedicating time to reflect on past strategies, assess current market conditions, and set realistic goals, you can make informed decisions that propel your business forward.

Annual business planning helps align your entire company, helping ensure everyone is working toward the same objectives. An aligned business plan can lead to increased productivity, improved communication, and a stronger competitive advantage, setting the stage for a successful year.

1. Run your financial reports

Unless you’re happiest with a calculator in hand and spreadsheet open in front of you, the odds are good that financial reporting isn’t your favorite activity. However, the end-of-year slump is an ideal time to take care of some of the essential (if unexciting) tasks on your to-do list. By running the following reports, you can get a better understanding of how your business is performing financially:

• Profit-and-loss statement (P&L): Also known as an income statement, a P&L details all of a business’s revenues, expenses, and costs over a particular time period.
• Balance sheet: This document shows a company’s assets and liabilities, including any outstanding amounts owed to investors.
• Cash flow statement: A cash flow statement reveals how a business manages funds and includes information on how changes in the balance sheet impact cash and cash equivalents.

Additionally, creating financial projections can help you anticipate future financial performance and make informed decisions.

Don’t have an accountant to help out with these tasks? Accounting software programs can help you run these reports and manage other business-related tasks with ease.

RELATED: 5 Tips for Organizing Your Business Finances

2. Consider future goals

As one year comes to an end and another begins, it’s a good time to consider your goals for the future. Along with the above financial planning, small business owners should evaluate factors like customer testimonials, employee feedback, and the overall business outlook for the coming year. Take a good, hard look at your accomplishments this past year. If you aren’t meeting your financial and personal goals, it might be time to reevaluate your business practices.

For example, you should examine your products and services and determine what, if any, changes are due. Consider what’s working well for your competition and decide whether they’re doing something right from which you could learn. Setting clear objectives and delegating responsibilities are essential strategies to help your business grow and thrive.

3. Review your website

As you evaluate the areas of your business that need improvement, don’t neglect your website. These days, most small businesses have their own websites, and if yours isn’t up to snuff, you might be missing out on invaluable opportunities to grow your company. And this isn’t just updating photos and your company description. Along with clicking links to make sure they’re all working, check phone numbers and email addresses and be sure your contact forms function appropriately. Searchers are unlikely to stay very long on a site full of dead links and slow-loading images.

Additionally, owners should use the end-of-year slowdown as a chance to plan out their online content goals for the coming year. While you don’t have to outline every blog, newsletter, and social media post prior to January 1st, it’s a good idea to consider your overall content strategy. For example, if you’re going to promote a particular product line in the first quarter, brainstorm some ways of marketing those items to your customer base.

It’s also useful to consider factors like weather and holidays when making content plans. After all, clothing retailers will surely promote different wares in January than in June.

If you don’t yet have or want a new website, our business website service is easy to use and gives you lots of options.

4. Start on your taxes

It’s everyone’s least favorite time of year. Still, filing taxes on time is important if for no other reason than the IRS imposes a late filing fee of 5 percent of the additional taxes owed for each month. If you have some extra hours in December, consider taking the time to get your tax documents in order. Look over your paperwork and make sure nothing is missing. Additionally, you may want to contact a tax advisor to help ensure you aren’t missing out on potentially lucrative deductions. Remember that if you use independent contractors, you are required by law to file 1099-NEC information form with the IRS by January 31 and to also provide a copy to the contractors by that date.

The ZenBusiness Money Pro app can help you prepare for tax season by simplifying your small business’s finances. It features invoicing and expense tracking to help save on taxes.

5. Sit down with your team

Employees are the backbone of any small business. However, that doesn’t mean relationships with staff are always smooth sailing. As the current year winds down, schedule some time to speak to your team members one on one. Discussing strategies for customer retention can also be a valuable part of these meetings, helping ensure that your team is focused on maintaining and improving this crucial metric.

Along with informing them about performance areas that need improvement, let them know what they’re doing well and encourage them to keep it up in the New Year. Want to avoid HR issues moving forward? Think about reviewing your employee handbook to make sure it’s up to date.

6. Assess your staffing needs

Once you’ve evaluated your team’s performance in recent months, you’ll be in a better position to determine staffing needs for the coming months. With many small- and medium-sized businesses reporting that hiring new employees is their most challenging task, owners need to make smart decisions when it comes to staffing.

Start by assessing whether you need new employees throughout the year or just at particular times, such as your busy season. Understanding and defining roles within your own business is crucial for effective staffing and delegation.

If you decide seasonal help is all you need, it might be worth working with a staffing company. These businesses specialize in finding and screening part-time and temp workers who can help you out at the spur of the moment. Additionally, you can predict future needs by determining your goals for the months ahead. If you have a new project launching in June, have a strategic plan to bring on additional workers a month or two ahead.

7. Reflect on previous strategies

Reflecting on previous strategies should be a vital part of your annual business plans. It allows you to evaluate what worked and what didn’t, pinpointing areas for improvement and opportunities for growth. By analyzing past performance, you can gain valuable insights into your company’s strengths and weaknesses, as well as the market trends and conditions that impacted your business.

This reflection is not just about looking back but about using that information to inform future strategies. With a clear understanding of past successes and challenges, you can better position your business to achieve its goals in the coming year.

8. Separate your marketing plans from your sales plans

Marketing and sales are two sides of the same coin, but they require distinct strategies. Marketing plans focus on building awareness and generating leads, while sales plans concentrate on converting those leads into customers. By separating these plans, you can help ensure that your marketing efforts are effectively driving sales and revenue growth.

Set clear goals and objectives for each plan and establish metrics to measure their success. This separation allows you to optimize both your marketing and sales strategies, leading to improved business outcomes and a more robust bottom line.

9. Take a much-needed break

While it pays to get your organization ready for the New Year, as a business owner, you should still aim to take a little time for yourself. Plan a few days away from it all when you can relax and recharge. You’ll reenter the workplace with a clearer head and a firmer commitment to building your business.

Put your plan into action

Creating an annual plan is just the first step; putting it into action is where the real work begins. Communicate your plan to all your stakeholders, including employees, investors, and customers, to help ensure everyone is on the same page. Establish a system for tracking progress, monitoring key performance indicators (KPIs), and making adjustments as needed. This proactive approach helps ensure that your plan is executed effectively and that your business stays on track to achieve its goals.

Regularly review and revise the plan to remain adaptable and responsive to changing market conditions, keeping your business forward-focused and ready for success.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.