2020 business performance review: 5 Things you need to do to finish your year strong
Whew, how are we in Quarter 3 already? If it feels like 2020 has flown by, well, it has. With everything that’s happened over the past six months, you may feel like your head is spinning.
Here are 5 ways to get your business back on track and end the year on a high note
A pivotal moment like this is the perfect time to stop and take stock of what you’ve accomplished, the path you’ve set, and what you may need to get rid of in order to advance.
Evaluate your business strategy
Now more than ever, it’s a great time to fish your goals checklist out of your binder and reevaluate the things you wanted to pursue. Are these still SMART considering everything that’s changed over the past six months? Are these still things you want to pursue in the current and, possibly, future business landscape? Is there a different path you’re itching to walk now?
Many business owners found themselves shifting strategies only days or weeks before COVID-19 happened. And are now adjusting to new difficulties, but also opportunities, they couldn’t have dreamed of.
Marissa Morrison, a successful female entrepreneur and the mastermind behind a small crafts business called The Neon Tea Party, recently shared the ups and downs of her business through the pandemic and how this challenge has grown and strengthened her brand positioning. You can read it here: TNTP in the time of COVID-19 | the neon tea party
Audit your finances
With all the change the pandemic brought about, there’s no doubt your finances were affected, whether positively or not. Perhaps you saw an up in demand for your services, or maybe your clients took a hit that affected your scope of work.
Evaluate these 3 aspects of your finances:
Income streams: Are your income streams all profitable? Is there anything you can cut from your rotation? Maybe put a hold on a new launch or accelerate it?
Debt: Have you set enough money aside to cover your year’s taxes? Have you received business loans in the face of COVID? Can you cover expenses like subscriptions, mortgage, rent, contractors or employees’ pay, and more without racking up debt? It’s easy to feel overwhelmed about this, or maybe put it in the back burner if you received financial assistance, a stimulus check, or even unemployment benefits. But you don’t want unexpected expenses to come up later and take you by surprise.
Expenses: Even if you didn’t suffer personally, it’s smart to check your business expenses and cut corners where you can. Revise your subscriptions, your interest rates, your employees or contractors, and other monthly commitments to ensure you’re not spending above your means.
Review your projects and performance
As you go about business on autopilot, getting down to business and tackling all the things, sometimes you end up with projects that lead to a dead end. Especially at a time like this, it’s important that everything you do has a reason and an impact on your business performance.
Take the time to conduct a performance review and ask yourself (or your team) to make a strategic plan and allocate your resources to the things that will move your company forward:
Is this project profitable and does it make sense in this climate?
Can I find a way to reduce costs in a project if it isn’t profitable?
Can I adapt this offer to new demands in the market without increasing the cost too much?
A key element of your business growth is how you invest your resources. By taking a hard look at your current projects, you’re guaranteeing that your time, money, and focus are invested in money-making activities and taking your business to where you want to be.
Related: 3 Signs You Need an Online Business Manager — Business Strategy & Management
Organize your leads
Many entrepreneurs lost clients during the pandemic because of its effect on the economy. With so many “elective” services coming to a full stop, the economic impact of COVID caused a wave of shutdowns across all industries.
If you found yourself on this boat and work is slower than usual, this is a great time to sort through past leads and your network and organize your business contacts. You can do a round of outreach, offer a service, or simply engage with old friends and past business connections to strengthen the bond.
Whether you sign a new client or not, this small act of sorting through your contacts will help open your eyes to new possibilities, collaboration, or growth opportunities in your business and beyond.
Evaluate your systems
As you’ve noticed by now, the theme for this time seems to be evaluating what you’re doing and how to make it better for your business going forward.
Have you fallen in the habit of doing something the same way forever simply because that’s how you’ve been doing it? Maybe you know there’s a better way, but haven’t tried to find it, or maybe you know you need a new automation, but the thought of working on it makes you anxious.
If you’ve found yourself going at a slower pace, this is an excellent time to evaluate the systems and processes you’ve set in your business and whether they help you reach your goals or not.
2020 performance review: Take time now to review your business and stay on track to your goals
This year, in particular, with many curve balls coming from all sides, it was easier than usual for small businesses to fall off track on their planning.
The pandemic likely impacted your clients, your strategic plans (perhaps a new location or event?), and your overall development. While the economic uncertainty has undoubtedly affected the way you go about business.
By taking a day (or week) to evaluate your path, you’re setting yourself up for a successful business year.
