For most businesses, this year has been a write off, and we now only have 90 days left of 2020. You may have an overwhelming feeling of uncertainty, worry and the fear of failure as we draw closer to the new year, however, these last 90 days are the most crucial days of the year when it comes to running a business. Now is the time to analyse, prepare, consider and react.
So what can you do to regain certainty and ensure your business flourishes going in to the new year?
Essentially, there are 3 main tools all businesses must have in place:
- An annual business plan
- An annual cashflow forecast
- Ongoing reporting & accountability
Ideally, within the next 90 days, you should be looking towards the new year to prepare these and stay in (or regain) control of your business.
Your annual business plan
Your business plan doesn’t need to be a lengthy document. It only needs to be on one page, ideally displayed somewhere visible so that you are able to review it regularly.
It should articulate exactly what you want from your business – from the hours you want to work, to the holidays you want to take and the income you need to survive. You will identify Key Performance Indicators (KPIS) to analyse, vulnerabilities to consider and manage and opportunities to react to. You want to look at setting no more than 4 key goals for the whole year, breaking them down into quarters, with clear actions to complete in order to achieve them.
Your annual cashflow forecast
Your forecast will determine how cash will flow throughout the year to give you what you want from the business. Too often business owners only create a forecast because it is requested by the bank.
A cash flow forecast highlights your businesses’ weaknesses, when cashflow problems may arise, and how you need to manage your business financially to achieve the goals you set in your business plan.
We highly advise a cashflow forecast is completed to ensure the success of your business every year. If you need help putting one together, we would be happy to assist.
Ongoing reporting and accountability
The value lies within the implementation of both your annual business plan and cashflow forecast. With that, reviewing your progress against your targets is crucial and allows you to track your actual result against what you have in your forecast.
The best way to ensure you don’t fail to implement your plan is to be held accountable by someone independent, whether that be a business coach, or an accountant, they will work with you to get a result better than you could achieve on your own and hold you accountable to getting the important stuff done. They will also uncover the root cause of problems in your business and work with you to do better.
If you don’t have a coach or an accountant, have a look around and consider investing in one.
What else should you be looking at?
Competition. New businesses start up throughout the year but with the current situation, it looks as if there will be an influx in September and January. Why? Because their is opportunity to excel. Many new businesses see this 90 day opportunity to kick start and gain interest. The same for those starting for in the new year.
Check out your competition, what are others doing that you aren’t? How can you incorporate new ideas within your next business plan?
If you need help with any of the above, get in touch, we would love to help!
JOIN OUR 90 DAY PLANNING SESSION TOMORROW (1 October 2020): Click here to book your place
Email: info@xebraaccounting.co.uk
Phone: 023 8000 1313