In last week’s PKF Texas – The Entrepreneur’s Playbook, we ran the first of our series of New Year’s resolution for your business. They are excerpted from an article written by Maggie Fleming, CPA, a senior manager in our Entrepreneurial Advisory Services department.
Here are a few more resolutions for you to think about for your business in 2008.
- Analyze your competition. Prepare a listing of competitors, the products they sell, and note their strengths and weaknesses. Compare this information with your own company’s data. This step should enable you to develop ways to maximize your competitive advantage in the marketplace.
- Update your marketing plan. Where would any company be without customers? Success comes from being able to attract and retain satisfied customers. It’s important to evaluate products and services, and determine which are the most profitable. Is a change in your product mix warranted? Should one product be promoted more than another? Be sure to evaluate your current customers: Consider weeding out those that are unprofitable or disruptive to your business. Remember: “Profitable sales” add dollars to the bottom line.
- Plan for capital expenditures. Consider the future capital needs of the company. Prepare a statement of capital needs, including a projected timeframe for implementation, and incorporate these costs into your budget. Schedule a meeting with your banker to discuss your business and obtain the criteria that will be used to evaluate financing needs.
- Schedule a tax planning appointment with your accountant. Inquire about tax law changes that could affect your business, and tax strategies to minimize taxes, such as establishing a Section 125 Plan for you and your employees. Set strategies in place early in the year in order to maximize your tax savings.
- Evaluate your employees. Consider the strengths and weaknesses of each, and use each employee’s skills to develop a strong team. Consider a New Year planning workshop for key employees: develop strategies, set goals and hold your team members accountable.
- Read at least one management book. Check the Internet or go to your favorite bookstore to search for a topic of interest. Don’t overlook books on leadership; being a strong leader is one of the keys to building a profitable business and one of the most effective ways to influence people. Read trade magazines and industry-related data to keep abreast on trends within your industry. Attempt to identify synergies that could help you expand your business.
- Develop an exit strategy. It’s never too early to start planning. Whether considering a liquidation, passing your business to the next generation, selling or being part of an acquisition, the better your plan, the more profitable the outcome.
What do you think about these resolutions? What are we missing? What are your resolutions for your business?