Successful small business owners know the importance of beginning each year stronger than the last in order to drive revenue and operational growth. But how do you keep progressing year after year?
In short, the answer is by staying one step ahead. This can be achieved by reviewing your business’s current strengths, weaknesses, opportunities, threats and more on a yearly or quarterly basis. Further, familiarizing yourself with your industry’s current climate will prepare your business to pivot when necessary.
Review your finances
Now is an ideal time to review your business’s financial records, insurance coverage and property leases. Ask yourself these questions:
- How can I ensure my business is financially sound and equipped with adequate insurance for the liability risks it faces?
- Should I revise my insurance policy to stay up to date or accommodate any significant business changes from the past year?
- Should I consider refinancing any debt?
- Which works better for me: leasing or owning the property my business operates from?
Ensuring your business’s financial stability begins with obtaining the proper insurance coverage. General liability, property, workers’ compensation, automobile and business interruption are insurance coverages most successful small businesses have in place. Additional types of coverage may be necessary depending on the nature of your business. You should consult with your insurance agent/broker for more information on the specific types of insurance that are recommended in your particular situation.
Review and evaluate ownership and governance documents
As the current year rounds out, it’s important to review your existing ownership and governance documents to make sure that they are up to date and take into account any changes made in the business during the past year. If new officers have been appointed or you have added additional owners, it is important that the ownership and governance records be updated accordingly. For an owner, this is also a good time to reflect on your anticipated role in the business next year. Will you maintain your current level of involvement in day-to-day operations? Or would you like to step back, expand your leadership team and task others with overseeing the execution of your day-to-day duties? Regardless of what the answer may be, it is important that you ask the questions each year so that you have time to take the necessary steps to implement your plans for the future.
Ensure you’re operating a successful small business at the start of Q1 by adding our business and employment attorneys to your team. Talk with Stock and Leader today.