As we approach a new year, now is the perfect time to step back and reflect on your business.
As businesses, we've navigated another year of flux and uncertainty, adapted to change, and made it out the other side.
With 2022 fast approaching, now is the time to start planning for the year ahead and envisioning what the future of your business looks like.
Here are some key areas of focus to set your business up for success in 2022.
Do a financial overview
Before you make plans for the new year, it can be helpful to see where your business currently stands.
Review annual sales and business performance for the past year and highlight any areas you need to focus on for the year ahead.
This gives you the ability to zero in on any problem areas and it's a great chance to celebrate your wins with your team and any areas that your business has nailed this past year.
Assess your business model
The last 2 years have seen us face a whole host of new challenges. As businesses, we've had to pivot and adapt, put plans on hold, and focus on getting through the pandemic. As a result, we've had to adjust our business plans to help us navigate the 'new normal'.
As we approach the new year, now is the perfect time to take a look at your business model as it stands. Start by gaining a deep understanding of how your business operates and how it creates value for its clients and shareholders.
What have you had to adapt over the last few months? Are there any areas you could improve? How could you strengthen your business model for 2022 and beyond? Focus on innovation and make it your goal to maximise benefits for both customers and shareholders.
An innovative business model can set you apart from the competition and position your product/service as the go-to choice for your customers. What's more, businesses that focus on innovation are more nimble and agile, and they're able to adapt and thrive in times of crisis.
Forecast for 2022
As we step into the new year, forecasting for your business is more important than ever. Where do you want to be this time next year? Take the time to forecast the developments in your business in sales, expenditures, profits, and cash flow, and use these predictions to shape better strategies and make the right decisions going forward.
There are so many important elements to forecast for, but one of the most crucial areas is cash flow.
Trying to run a business without managing cash flow is like driving through a tunnel at night with no lights on. Throw a pandemic into the mix, and things become even more uncertain without a good handle on the numbers.
Whether it's a cash flow spreadsheet or high-level forecasting software, taking a proactive approach to your business's finances will ensure you go into the new year strong.
Set business goals for the next 12 months (and an action plan to achieve them)
What do you want to achieve in 2022? What are your business goals, and your life goals? Are there any plans or projects you didn't get around to completing this past year?
Having a 'year in review' session with your team is a great opportunity to reassess your wider business goals, celebrate your achievements from 2021, and get everyone aligned with the wider vision.
Get everyone on board with setting specific and measurable goals for the next 12 months and create a roadmap with key dates of what you need to do to achieve them.
Having a solid game plan in place means you and your team can come into the new year knowing exactly what you want to achieve and how you'll do it.
Talk to your accountant
Arrange a meeting with your accountant and other advisors to help you plan your finances for 2022.
With the help of a good accountant, you can get a clear picture of how your business has performed in 2021 and what the future projections look like for 2022.
They will help you assess the overall health of your business and implement a game plan to achieve your goals for the year ahead.
Looking ahead
As 2021 comes to a close, remember to celebrate the wins from this last year and use them as fuel to drive your business forward.
Even if you didn't achieve everything you set out to this last year, navigating another year of flux and uncertainty is something to be massively proud of, and is a huge achievement in itself!
With a clear focus on your goals and a solid game plan for how to achieve them, you can set your business up for success in 2022 and beyond.
