As the calendar (mercifully) turns to 2021, there is a familiar sense of reflection. While the holidays may have been a bit different this year, the post-holiday period is still a time to look back on the prior year and set goals for the coming year. Businesses can also benefit from reflection and goal setting. In this article, I will talk about a few resolutions for your business that may help in the New Year (though I hope your business has more success than my resolutions usually do).
- Get In Shape. If you are anything like me, the holidays are the perfect time to eat too much, sleep too little, and skip workouts. Sticking with a workout plan takes discipline, especially when you are out of a regular daily routine. Maintaining discipline in day-to-day business operations is also challenging, but the New Year is a great time to re-dedicate your business. For example, be vigilant in securing vendor rebates, nip any personnel issues in the bud, and stay on top of customers for timely payment. Like skipping workouts, letting small issues slide can snowball into more significant problems, which could affect your business’s value.
- Get Healthy. Many of us have felt it is time to refocus on our health and lose those extra couple of pounds. Businesses are no different. They can get lax in the good times, over-consume in employee perks and overindulge on requests for additional hiring. If 2020 taught us anything, maintaining lean operations in good times can provide a cushion for the unexpected bad times. In the New Year, consider taking a closer look at your expenses to see where you may be able to trim the fat and improve profitability.
- Get Organized. During the year, unread books and articles can pile up, bills find their way into the strangest places, and home maintenance routines can slip. Businesses likely follow suit. Does your sales cycle feel disjointed? Do projects progress differently because of inconsistent project management? Are teams in conflict because of poor communication? The New Year is the perfect time to consider new processes and procedures to remove friction and improve efficiency.
The New Year provides a natural point for reflection and goal setting. Consider these steps to improve your business and possibly increase your business’s value. Please reach out to us with any questions on what else affects value or any other valuation questions.
Article written by:
Manager, Valuation & Business Advisory Services