5 questions to muse on in December

As we approach 2018, many businesses are winding down while others are approaching their busiest time of the year. Regardless of where your business is at, now is a great time to reflect and take stock. Ask yourself these five questions:

Do you know your business?

Your profit margins are vital to your business’s success. It is important to understand how these are calculated, reflect on 2017’s performance and track them in 2018.

Do your debtors need a hurry up?

The new year is a good time to develop a firm but fair collection policy. Make a New Year’s resolution to stick to this policy. Give your debtors a hurry up before Christmas and get paid before they go on holiday.

Is the price right?

Small businesses often fail to charge what they are worth, even if they are doing great work. If your customers can see the value you give them, make sure your prices reflect this.

Do I have a good handle on my cash flow?

Prepare cash flow forecasts and review budgets against actual results to ensure that you have a tight handle on your business’s performance and future cash flow requirements. Businesses who shut down over the Christmas break should pay particular attention to their cash flow during this time.

Am I serving my existing customers?

Don’t waste time and money trying to attract new customers when there may be untapped potential in your existing customer base. It’s more costly to acquire new customers then to serve the ones you already have.

 

To help take stock of your business and for assistance with business planning in 2018 and beyond, contact your local BDO adviser.