It’s that time when all entrepreneurs have to take an honest look at how their business performed in the last twelve month.
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It’s quite a sobering time of year as we take stock of the year’s performance. It’s that time when all entrepreneurs have to take an honest look at how their business performed in the last twelve month.
As a business owner, you should actually be keeping a beady eye on your numbers throughout the year so that you can take corrective action there and then; this is so much easier said than done, especially when you get caught up in the day to day operations.
Let me know if you can relate to this: You decided to start your own business because you were incredibly good at what you did. You thought to yourself, ‘Why am I doing this for someone else? Let me become my own boss.’ Little did you know that becoming your own boss no longer entailed doing what you absolutely loved, you had to start donning a totally new wardrobe of hats – that of HR, Finance and IT manager roles.
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You then got so involved in working in the business, you lost focus on being the business owner, working on the business. Cracks slowly but surely start surfacing because rowing and steering a boat is just not possible without things going belly-up.
You secretly started thinking of going back to that awful 08:00 to 17:00 soul destroying job. Anything is better than the invoices piling up and the revenue man sending you texts that you owe them ridiculous amounts of money.
Don’t give up.
Use February to focus
Many people use December to set their annual goals, use February to plan for your business. As tempting as it is to rather work on something creative or on a new product to get your mind off things, set time aside to work on your figures. We all naturally revert to our comfort zones when things get difficult. Instead we should be facing the things we really don’t have a natural affinity towards, such as finances.
If you don’t know where to start, the first thing on your ‘to do’ list for the new financial year should then be to invest in an accountant.
Categorise you expenses, list your income and see where there are gaps. Perhaps you need to review your price structure, perhaps you need to curb your spending, maybe you need to get more team members on board to help you deliver your product or service. Prioritise these gaps and then put actions and due dates next to them.
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We need an economy of budding entrepreneurs so that when the planning for the next financial year comes along, you can focus on budgeting for exciting things like market research, and investment into your products and services instead of trying to figure out the debit and credit columns.
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