Summer’s officially over. The kids are back in school — and now those business decisions that you’ve been avoiding for the past several months are right in front of you. It’s time to strategize how to finish the last third of the year as profitable as possible.
How do business owners optimize the remainder of 2021 to prepare for a prosperous 2022?
Assess where you are today: If you’ve been following our articles, you are already preparing your 2022 budget and analyzing your results from the first eight months of the year. It’s time to take a good hard look at your financial statement as well as your key performance indicators (KPIs) that are vital to your business and assess if you’re on or off target. And if you’re off target, what can you do to right the ship? It’s not too late to attain your budget, or at a minimum, set yourself up for a stronger fourth quarter and end 2021 strong.
Start Preparing for 2022: We will be celebrating New Year’s Eve sooner than we realize. Prepare your budget for 2022 now, incorporating all of the pre- and post-pandemic operating and financial performance information and data, to maximize cash flow and business operations over the next 12-18 months. Assess any potential investments in products and services, plan to train your current team members, and recruit the type of employees needed to be successful.
Take a three-year approach: First, define where you want you and your business to be. As you prepare the 2022 budget, it is important to explore long-term prospects, e.g. acquisition, sale, growth, etc. Ask yourself: What are my available resources? Investing in yourself and your business is the best thing you can do to maximize your company’s potential and valuation. The current interest rate environment is very appealing, and Small Business Association (SBA) loans are still available to entrepreneurs. If there was ever a good time to borrow large sums of money and reinvest in your business, this is it! Ensure that you have the proper cash flow available, especially for necessary operating activities, in order to sustain and grow your business.
Take-away: Those who fail to plan, plan to fail. For a free diagnostic on your business and an assessment of how to prepare for next year’s budget and three-year plan, contact Brian or Scott at firstname.lastname@example.org.
Co-founders & Managing Partners