There are many things to contemplate when thinking about advice for small business this time of year. The work Christmas party and your responsibilities, employee bonuses, shut-down periods and leave arrangements to name a few. What I am going to talk about today is checking your business health at this time of year. (If you want some help for those other topics give us a call at Business South West and we will give you a hand).
As nearly all business will be working on a financial year basis, Christmas marks the mid-year point for your current business cycle. This is a perfect time to run those reports and see where your business is at and have some time to tweak things before you get to the end of the financial year.
Hopefully you know what you expect in terms of your revenue for the year and what your expenditure needs to be to make that profit you are looking for. Now is the time to see what the half way mark looks like and what you may need to do to keep things on track for the year. Obviously no business runs in a totally linear fashion throughout the year, you have ups and downs and for a lot of you, particularly in the retail and services areas, this is your busiest time of year.
The best job you can do for your business, after you have recovered from the new year’s celebrations, is to sit down in a quiet location and look at your business performance and see what needs changing. Do you need to increase your revenue, are there cost areas blowing out, has the Christmas trading been good or bad, if everything is great how do you keep the momentum going?
All great questions and hopefully you have some answers that will keep your business going in the right direction to the end of the financial year and hopefully beyond.