2023 - Planning for the Year Ahead

How does a business owner get prepared for the year ahead while remaining flexible to the opportunities and challenges that inevitably arise?

Here is how I have successfully helped my clients by “organizing” the year into quarterly chapters:

Q1 focuses on wrapping up the prior year, reflecting on the learnings and how they apply to the year ahead. The comes the tactical pieces - preparation of taxes, cleaning up of the books after taking inventory, confirming the vision and longer term objectives of the organization

In Q2, based on the outcome of the annual audit and the goals of the company, necessary changes are made to strengthen the organization. This is when investments need to be considered to improve efficiency and value creation opportunities and roles and responsibilities need to be adjusted. We assess growth strategies, kick off major projects and start updating the overall strategic plan.

Q3 means the midpoint of the year has passed - time to conduct a thorough review of the plans for the year and assess progress made. If needed, initiatives are being started to secure Year End results, strategic plans for the next 3 to 5 years finalized, and the annual planning for the next year should be kicked off. We continue to consistently monitor profitability, identify and evaluate growth opportunities and expansion ideas.

And once we hit Q4, we start finalizing key strategies for the next year, staying focused and delivering a 3 months performance in a 2 months of productivity quarter, wrapping up unfinished business, celebrating the season and the stakeholders, saying thank you, finishing the year strong.

The above outlined approach covers? all important areas and still leaves flexibility for new trends and unforeseen opportunities.

Now that we are in Q1 2023 and January progresses quickly, here are your action items:?

1. Transparency of regular financial statements to look for early warning signs of developments that require attention and correction. These also provide snapshots of financial performance.
2. Review and discuss your tax returns with your CPA to keep you aligned with the newest tax laws and gain the expertise of tax experts.
3. Clean up your books and use tax prep time to have a process in place to reconcile your balance sheet accounts and to have up-to date fixed asset and inventory subledgers
4. Assess the financial leadership capacity of your organization
5. Review the group of advisors you engage with and determine whether they truly serve the purpose and are capable of helping you reach your goals.

I am excited to start a promising new year and am here as a resource for you and your organization. Watch out for my subsequent posts, which will address the topics highlighted for Q1 2023 and share additional relevant thoughts.?

Are you curious about the state of your company and its value? We have a simple tool which allows you to assess the state of your organization and determines the approximate value of your company. Reach out to [email protected] to learn more.