Resolutions For Small Businesses
I love the beginning of a new year. Not for the champagne-filled revelry of New Year’s Eve, but for the chance for a fresh start for my business and my life. I’m optimistic for 2008, even though it’s likely to be an unsettled time for the American economy, but there will be not only challenges but opportunities ahead for entrepreneurs and small businesses.
So here’s my list of new year’s resolutions for entrepreneurial companies for 2008:
Evaluate what you did right. When drawing up a list of resolutions, we usually focus on things we want to change. But you’re still here in 2008, so you did some things right in 2007. See how you can continue or increase your commitment to the positive ways you currently run your business.
Treat your employees right. If you’re starting 2008 with experienced, motivated employees, you’ve probably treated them well last year — paid them competitive salaries and benefits, trained them, acknowledged their contributions. Keep that up! If, on the other hand, you have high turnover and dispirited employees, resolve to change the way you hire, manage and reward your staff.
Get your financial information organized. Jan. 1 is the ideal time to start keeping better financial records. If you’re using a word processing or spreadsheet program (or worse, a shoebox!), get a good, easy, financial accounting program now.
Increase your efforts with best customers. If the economy turns sour in 2008, your customers are going to have to make some cuts. Make sure you’re not the one on the chopping block by working with them, serving them well and making sure they don’t forget you.
Market, market, market. In bad economies, the first budget item big corporations cut is marketing. That means the chance for you to go out and get some of their customers. Companies that keep up their marketing in downturns actually increase market share.
Diversify your income stream. If you’re overly dependent on one customer or one sales channel, you’re vulnerable. I certainly learned this in 2007 — when my distributor went bankrupt. Fortunately, I had diversified a few years ago and had a second, significant sales channel. But stay focused on your core business!
Start a reserve account. 2008 is likely to be an unsettled income year, but in every year, cash flow in a small business is like a roller coaster. By building a reserve account of a few month’s operating expenses, you’re less likely to get queasy from any sudden drops.
Develop an annual business plan. Without a doubt, the one thing I’ve done that’s improved the health and income of my business is to develop an annual business plan. We do a full company planning session every year. Even if you do just a simple plan, sit down and figure out a plan for 2008.
Exhibit at a trade show. In my company, trade shows have been a major source of customer leads. But it’s expensive, so do your homework and be sure to have a follow-up plan ready. Start with local or state trade shows rather than national shows that are far more costly.
Back up your data! Having twice had major disasters and a hard drive crash, I know the importance of backing up data. Back up regularly (at least weekly) and, ideally, store your backup data in another location.
Clean up your credit. As banks and other lenders grapple with the mortgage crisis, make sure your personal and business credit is as clean as possible. Pay your bills on time, even if you have to maintain a balance. And check your credit reports. Get a free credit report from www.annualcreditreport.com.
Keep learning. Whether you work alone or have a thousand employees, you are your company’s most important asset. Go to seminars, read journals, take classes, learn new skills. Your brain is your most important business asset. Add to it.
Finally, remember what truly matters. In 2008, let’s create peace, opportunity, fairness and joy in our businesses and our lives. Have a happy and healthy new year!
Rhonda Abrams is the author of “Six-Week Start-Up” and “What Business Should I Start?”
WBJ Web Partners
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