As a business owner, there are many aspects of the company that you need to consider in order to ensure its success. From finances to growth to development to employment policies, the list can seem overwhelming at times. However, taking the time to review and adjust these areas at the end of each year can greatly improve your chances of future success.
Here are some key areas to focus on during your end-of-year review:
1. Business Plan Review and Revision
Your business plan is a crucial tool for guiding your organization’s future growth, management decisions, and metrics. While you may have created a plan when you first started your company, it’s important to regularly review and revise it to ensure it remains consistent with your goals and values.
As a small business owner, you need to be aware of tax deadlines and plan accordingly. Consulting with an experienced corporate tax attorney or accountant can be beneficial, especially if this is your first time filing taxes as a business owner.
3. Annual Corporate Minutes Evaluation (ACME)
Corporations need to maintain certain formalities to ensure they remain separate from their owners. This includes holding and documenting the minutes of annual shareholder and director meetings. Conducting an ACME with your attorney helps you document events like corporate expenditures, dividends, and property acquisitions.
Great bookkeeping is essential for any business, as it helps you track your income and expenses, and can help you avoid potential financial pitfalls. Keeping up-to-date records will also help your attorney walk you through your funding options.
5. Succession Plan
A well-thought-out succession plan helps ensure an agreeable price for a partner’s share of the business, helps establish a timely settlement should one partner exit, and can even serve to name a successor.
6. Staffing Plan
Hiring your first employee can be intimidating, but assessing your goals for the coming year and current staff headcount can help you project your needs for the future. Utilizing freelancers or other 3rd parties is also an option to consider.
7. Employee Handbook
Laws and regulations regarding the workplace are constantly changing, making it important for you to review and update your employee handbook every year. This can include addressing policies like sexual harassment, social media, PTO, and beneficiary designations.
8. Business Contracts
Reviewing and updating your current contracts and preparing for the year ahead is crucial. While templates can be a great starting point, it’s important to consult with your attorney to ensure the contract is uniquely fitted to your organization.
As a business owner, it’s important to work cohesively with a team of professionals to navigate the ins and outs of day-to-day operations. Working alongside your business partner, attorney, accountant, financial planner, and mentor can help lay the foundation for a successful business that will flourish for years to come.
In conclusion, conducting an end-of-year review in each of the aforementioned areas is vital for maintaining and growing your business. It allows you to identify areas for improvement, plan for the future, and work alongside professionals to ensure your success.