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December is a BUSY month. Between winter holidays, semester finals, graduations, and gatherings, who has time to think about accounting or website updates? Well, as a small business owner, you should.
Many small business owners find themselves as a jack-of-all-trades within their business; they handle the accounting, the marketing, the customer service, the maintenance, the daily operations, and more. Some business owners even have staff and contract services to keep track of. It’s a lot but it is so worth it. This year may have stretched us to our limits but these tips will help you take stock of your business year and prepare for 2021.
#1 | Bookkeeping
Tedious and time consuming but oh-so-important. Take the time now to make sure your financials are organized and you can beat the crowds heading to the professionals during tax time. Get your files and paper records in order, declutter, and organize so that you are ready to book an appointment at first availability. If you don’t already have a CPA, now is the time to call around and find someone to make this process a lot easier for you. Additionally, knowing your finances will empower you to make savvy decisions in the coming year.
#2 | Review your Business Classification
The thought of reviewing legal jargon is not exactly steeped in holiday spirit but you could be giving yourself a future gift. Visit your local county clerk’s website or state agency to review the qualifications and limitations of each business structure. You may find that your Sole-Proprietorship license doesn’t fit anymore and an S-Corp or LLC is better for the future. Hiring an attorney specializing in business law may be a valuable investment for this decision. Be sure to have all of your files organized and in tip-top-shape, you may need them for an audit or to complete the change of classification application.
#3 | Hiring and Outsourcing
Revisiting our first tip, proper financial awareness will help you know if you have the capacity to hire or outsource tasks. A business can only grow so much until you need help. Stop trudging through every task and find savvy ways to delegate responsibilities to others. Maybe you need to hire a social media manager or professional organizer. Perhaps a new member to your staff team will be responsible for customer service or work the weekends so you can spend more time at home. Whatever you chose, knowing your financials is key.
#4 | Plan for Balance
Do you know what you’re doing September 18th? Probably not, but taking some time now to plan important dates, holidays, and events into your schedule will save you a lot of future stress. Check for wedding invitations, graduations, baby showers, family vacations, holidays, sporting events and getaways; anything you certainly don’t want to miss. Add these events to your calendar now and come up with a staffing or closure plan so you can fully enjoy these moments without scurrying to find a last-minute solution. Additionally, write in your appointments with your CPA, attorney, and contractors.
#5 | Examine your Pricing
When you first started your business maybe you did a lot of research into comparable provider rates and based your pricing off of that or you threw a random number to the wall and that’s what stuck.
Either way, chances are you haven’t updated your prices in some time. Now is a good time to look into how much time you actually spend on your craft and whether or not your pricing schedule fits the time and quality you put in. You may find that you are barely breaking even or have been undervaluing your work. It’s such a nerve wracking thing to tell your clients that you are increasing your prices, but if you’ve served them well, give ample notice, and are professional many of them won’t mind. Trust me.
So, whether you are gathered around a menorah, reciting the 7 principles, or enjoying the festive lights, know that you’ve had a great year. No matter how your business has changed, you’ve weathered this storm and are ready to thrive in 2021.
Best wishes for a wonderful holiday season and STAY ORGANIZED!
Contributed by S. Walter
