Question: It seems like the new year would also be a good time for some business resolutions. Any suggestions?
Answer: Yes, the new year is a great time to take a look at your business with an eye toward making some changes. Be open-minded in considering ways to improve your business. Let's talk about this.
Beef up your management skills. Our local area has dozens of opportunities to learn new business methods and techniques. There are numerous class offerings at the larger local institutions, including Western Washington University, Whatcom Community College and Bellingham Technical College. You should also watch for seminars, workshops and one-time presentations from local groups and organizations.
Keep an eye on the local chambers of commerce for free or inexpensive learning opportunities. The Small Business Development Center, Center for Economic Vitality, Economic Development Association of Skagit County, and others offer business-improvement seminars and training. The SBA (sba.gov) and SCORE (score.org) websites are loaded with business-improvement ideas from the broad to very specific. Several business magazines, notably Entrepreneur, Fast Company and Inc., are good sources of the latest developments. To find trade magazines particular to your business, check freetrademagazines.com. With 24/7access to blogs, knowledge bases and webinars, there's really no reason to pass up adding to your skills.
Join a local business organization. Interacting with other business people is a great way to make new friends and gain new contacts. Find an organization which has members you likely wouldn't meet otherwise. Some groups (notably the Bellingham/Whatcom Chamber of Commerce & Industry) conduct structured, often monthly, networking events where members hand out cards and brochures and give a brief summary of some aspect of their business. Your peers are a great source of fresh ideas.
Send a handwritten note to your best customers or clients. Depending on the size and growth stage of your business, you probably have five or ten customers who are especially important. A quick note of thanks, with best wishes for the New Year, is always welcome. It's also a chance to ask what they might like to see from your business in the New Year.
Make a small improvement in your operation. Identify a weak spot or a situation that's holding you back, and fix it. Perhaps an older piece of office equipment is in need of replacement. Is it time for a new or modernized logo? How about some updating to your computer hardware, or adding some new software? Maybe there's a confusing procedure that you could make easier with a simple checklist. How about a new way to process your payroll, or a better system for tracking inventory? There's no limit to the ways you can improve your business, and they need not be expensive.
Review the legal structure of your business. If you are operating as a sole proprietor or partnership, another form may be more appropriate. Forming an LLC or corporation might have some specific legal or accounting benefits for your business. These often include certain limitations on your personal liability and also some flexibility in how the business is taxed. Check with your legal and accounting advisors to see if this would be a good time to switch.
Make better use of your accounting system. Your books and records aren't just for tax reporting. As you grow, your accounting system needs to grow too. Upgrading software or asking your outside accountant for a little more involvement may be a wise move. Your eventual goal should be to use monthly or quarterly financial statements to help you make financial decisions. At a minimum you should be comfortable using a Balance Sheet and an Income Statement, and with the basics of cash flow. When you're ready, start at Wikipedia under "financial analysis."
Investigate a new market for your goods and services. It's always smart to have a backup plan ready to go on short notice. After you identify a market segment you're not reaching now, look into some ways to access that market. What print and broadcast media do your targets read and watch? What social media do they follow? You may want to do the initial work to set up a marketing and advertising plan. This should include some ways you could reach the new customers or clients, and ideas for an effective ad campaign. Much business growth is opportunistic, so be ready to grab a chance when it presents itself. Also, having this preparation in your back pocket is comforting if you're concerned about a sudden loss of business to the competition.
Continuous improvement is a very good habit to get into, and not just on New Year's Day.
ABOUT SCORE
To learn more about managing cash flow, and other small business matters, contact SCORE, "Counselors to America's Small Business." SCORE is a nonprofit nationwide organization with more than 13,000 volunteer business counselors who provide free, confidential business counseling and low-cost training workshops to small business owners. Call the local SCORE chapter at 360-685-4259 to schedule an appointment. For details about the organization,visit SCORE.org.
