This time of year is often spent reflecting on the past year and planning for what is to come. We often make New Year’s resolutions to form new habits focused on our health and wellness; here are six habits that focus on improving the health and wellness of your business.
Make Goals
Reflecting upon 2022 business records and the overall year in review is an excellent time to plan goals for 2023 and beyond. What went well in 2022? What didn’t go well? What path will be taken in response to those questions? Think about the next three years or less (short term goals) and then year four and beyond (long term goals). Your goals need to be SMART: Specific, Measurable, Attainable, Relevant, and Timed.
Maintain and Analyze Financial Records
You cannot manage what you do not measure. An effective financial recordkeeping and management system is crucial to measure the economic activity of your business. Systems for recordkeeping may include software, spreadsheets, and manual ledgers. What system you use is not as important as just making sure it is in place and you are comfortable with it. Creating reports from the records can help analyze your business’s financial performance. Profit & Loss Statements and Balance Sheets are financial reports that should be created and reviewed on a monthly or quarterly basis.
File and Pay Taxes – All of Them (Income and Payroll)
With the previous year’s financials recorded, everything is together to file income. If the business owes taxes, file and pay them on or before April 15. If the business expects a tax return, file business tax forms or an extension on or before April 15. If 2023 is projected to have taxes due as well; estimated taxes can be paid quarterly on April 15, June 15, September 15 and January 15 of the following year. Payroll tax payments for business employees or self-employment tax for the owner should also be paid by January 31. Remember all payroll taxes should be deposited April 30, July 31, October 31, and January 31 of the following year for 2023.
Manage Your Time
Managing your time can result in less stress and more free time, but how do you manage time? Create a task list; use a note pad or an app which allows you to get your to-do list out of your head. Once on paper, you can prioritize tasks based on how important or time-sensitive they are and assign due dates to them. This will enable you to create a daily/weekly/monthly/annual plan of work. The best part of having this list is that it allows you to see your progress, as you check off completed tasks, and will keep you accountable and productive.
Listen to Your Customer
Understanding who your customer is and is not and knowing their needs and desires is critical in designing an effective marketing strategy for your business. It is important for you to recognize who your core customer is and to make efforts to understand what is important to them in their buying decisions—such as price, quality, or convenience. This can be accomplished in many ways, including conversations with your customers, customer surveys, reviewing articles on latest trends in your industry, and being a secret shopper talking to other customers.
Evaluate Production and Distribution
Your off-season is a great time to evaluate your production and distribution methods. Were there any expected issues (diseases, pests, etc.) that resulted in additional costs? Is there anything you can do to prepare for the next season to help prevent those issues? Are your current distribution methods cost-efficient for the size of your operation and beneficial to all involved? Understanding what issues arose during the growing season can help you prepare (to the best of your ability) for the next year.
These habits will better your business by helping it to be more organized, efficient, and receptive to changing market needs. We are here to assist you with your business needs and look forward to serving you in the coming year. Contact us today at 859-550-3972 or via email at kcard@kcard.info.
