Are You Taking Time to Reflect?

This time of the year is a whirlwind. A lot is going on from mid-November until the end of the year; the feeling is doubled if you are a business owner trying to prepare for 2023! Between setting yourself up for success with good planning and gathering all the items your accountant is asking for, there’s hardly any time to reflect on the passing year and create your vision for the next one.

Despite the season’s crunch, it is essential to take the time to look back over the past twelve months and decide what worked and what didn’t and where you would like to improve or change in the next twelve! What can you do more to ensure more tremendous, sustainable success, and what have you been doing that might be hindering your growth?

Everyone reflects on successes and misses differently, but here are several ways to look back over the year with purpose!

One great example from Keda Edwards Pierre in this article on Forbes.com is using a 5-point checkup. Keda calls it her “ABCs,” looking at her alignment with her company and the idea of “Boots on the ground” and if she remembers where she came from. Then she tackles the ever-important communication; is she self-aware and clear and follows up with two more C’s, care (self-care) and creativity. What would your ABCs be, and how could you use Keda’s check-up to check in?

Sarah Li-Cain, on collective.com, wrote this article about how to use reflection to level up your business in the coming year. One of her suggestions is to look back through your calendar and projects to see how much you have accomplished! After patting yourself on the back for your hard work, determine what went well and what did not. What projects did you love, which ones did you not, and why? Are the ones you disliked aligned with your business, or is there an issue with how you tackled them?

Shannon Kaiser of Entrepreneur.com offered ten ways to reflect compassionately over the past year. Although we loved the entire list, our favorite was, “What have I been avoiding out of fear?” This is a wonderful and challenging question to ask and answer. We know as business owners that unchecked fear can wreck our plans and keep us stuck. But what might we find if we look at missed or mishandled opportunities through this lens?

Regardless of how you choose to go about your year-end review and reflection, it is essential to do so. How will you reflect this year, and what do you hope to do differently next year?

Time to hire a CFO?

Growing businesses often reach a point where they need professional financial advice but can't afford a full-time CFO or controller. If you're fortunate enough to be in this position, consider hiring a part-time CFO.

If you are not sure this is the right move for your company, consider the top three reasons other companies have taken this step:

1. Expertise

2. Time

3. Cost

Taking a closer look at each of the key reasons, we find these benefits:

Because of their backgrounds and experience, CFOs can better understand your business's financial side, leaving you with fewer surprises and more control over your money. They can help you improve decision-making capabilities by clearly seeing your business's hard and accurate numbers. They can be a sounding board to help you with those tough business decisions. And perhaps most importantly, hiring a part-time CFO means you know that a professional oversees, protects, and constantly improves your business's financial side.

When we consider time, a part-time CFO can take on tasks like training and managing your accounting staff, budget preparation, and monitoring. They can also be your company’s liaison with bankers, attorneys, vendors, and insurance agents.

When considering the cost, a part-time CFO can save you money in multiple ways. First, the cost of hiring a full-time CFO can range from $65,000 to well over $100,000 per year, plus bonuses and benefits. Hiring a part-time CFO will cost a fraction of that cost. Second, a part-time CFO saves money by creating strong financial controls to reduce employee theft and increase profits and will help with cash management and tax-saving strategies.

As we enter a new year and you create quarterly goals, will those include growing your business with a part-time CFO? How much more could you accomplish, and how much more could your business grow in 2023 with expert help?

16 tips to Succeed!

Here are 16 ways to set yourself up for success in your new business!

Are you thinking of owning your own business?

Opening your own business is exciting and thrilling. Everything that comes after the excitement and thrill have worn off dictates whether a small business will make it. Although it's up to you to maintain and stretch out the "thrill and excitement" period forever, a methodical action plan is needed to fulfill your dream or goal of being your boss and running a successful business.

Success lies in the approach you choose to take and in avoiding some of the common pitfalls of a new business. Here are 16 things to include in your new business action plan!

1. An initial business plan to clarify your marketing, management, and financial goals.

2. Determine your start-up capital needs.

3. Identify sources of start-up capital and backup sources if needed.

4. Evaluate and quantify your borrowing power so you know how much money you can get your hands on if needed.

5. Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation, and portability should you relocate.

6. Select the right accounting software by evaluating your budget, needs, and hardware.

7. Prepare a Cash Flow Budget to know precisely how much money you need to keep the business alive each month for the first few years. Unplanned cash requirements are always emotionally painful.

8. Establish billing and collection procedures to maximize your cash flow.

9. Establish procedures to monitor and control costs.

10. Set up a home office to maximize your tax deductions.

11. Prepare and file all required state and local licenses and permits.

12. Prepare and file your application for your Federal Employer Identification Number.

13. Provide payroll and payroll tax filing when you bring on your first employee.

14. Comply with employment laws, so you don't get hit with fines and unhappy employees.

15. Identify your business insurance needs.

16. Develop a solid Business Agreement. This document is essential for all new businesses and will help prevent tremendous financial and emotional problems.

Although this list is not exhaustive, it is a great place to begin. It is also always advisable to work with an accountant or other small business specialist to ensure you get off to a great start! If you have questions, we are here to answer them! Call us at 806-676-2849 or come by the office today!