As we enter the final weeks of 2005, you are undoubtedly hunting for gifts. While these are obvious year end considerations, you should also be reviewing your business strategy for 2006.
Business Strategy – 2005
Whether your fiscal year ends in December or doesn’t, the end of the month is a good time to take stock of how things went in 2005. While the old saying is “time flies”, it is particularly true for businesses. Business owners tend to be fixated on two to three month time periods. As a result, they can fail to see developments over longer periods of time.
After you’ve taken care of all your holiday gift purchases, you should have some down time in the last two weeks of the month. Business tends to slow down as people deal with the holidays, travel to see family and so on. This is the perfect time to go back and consider the business year. Specifically, you should focus on where your business was in January 2005. What were your goals at that time? Did you meet them during the year? If not, why? You will almost always be surprised when you realize how the business developed over the last year. This global view can give you a better perspective and evaluation of how things are going.
Business Strategy – 2006
After contemplating 2005, you should give consideration to what you want to accomplish and where you want to be by the end of 2006. Ask yourself the following:
1. What is a reasonable revenue increase for 2006 compared to 2005?
2. Are their products or services you should pursue?
3. Are their products or services you should drop?
4. If a strategy is underperforming, does it make objective sense to continue pursuing it or cut your losses?
5. What are your biggest frustrations and how can you deal with them?
6. Who are your most valued employees and have you taken a moment to thank them?
7. Who are your least valued employees and what should you do about it?
8. Which vendors or suppliers do great work for you and which don’t?
Many other questions will run through your mind. There are no wrong ones. What is important, however, is you write the goals and thoughts down and keep them somewhere private. Next December, you should pull them out and see how things are going.
Richard A. Chapo is a San Diego business lawyer with www.sandiegobusinesslawfirm.com - a San Diego business law firm in San Diego, California.
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