Preparing your Small Business for End of Year (PART I)
For many business owners, the end of the year comes roaring in and for those of us who #wearallthehats that often spell overwhelm. What if instead of letting these pile up for the last minute, you spend a little time planning ahead so you can ease into the holiday season singing, “Sleigh my name, sleigh my name.” Yule be sorry if you don’t.
*Somebody stop her*
REVIEW YOUR CALENDAR
Instead of reacting to the inevitable holiday hubbub, spend a little time planning for your end-of-year wrap.
Block off time for holidays - including prepping like shopping, gift wrapping, and resting!
Have kids in school? Print out their school calendar and add the “no school days” to your planning calendar.
Block off a planning session (2-3 days) to prepare for the year ahead (ahem...more on this coming soon!). I recommend booking a nice hotel and hunkering down with a calendar, stickies, an easle pad, and journal for some serious brainstorming time.
Share your “blackout” dates with clients so they know if you’ll be out of pocket.
BUSINESS DEVELOPMENT
Wouldn’t it be nice going into the holiday season, knowing you have a great project (or two) lined up for January? Get your next year's clients in the queue now so you can enjoy your holiday season with gratitude.
Reach out to any past prospective clients who may have put their project on the back burner.
Leverage social media to announce you have room in your design calendar for *a* new project starting in the new year.
Don’t be afraid to ask for a financial commitment from clients to hold their spot in your calendar. Set a date for your kickoff meeting in January, then send them a small gift during the holiday so they know you are thinking of them and excited to start their project in the new year.
FINANCIAL
Closing the year with clean books will help tremendously when it comes to tax season. Get your financial affairs in order now.
Cautionary Tale: I learned this the hard way years ago when I wrapped up the year with a design presentation just before the holiday break and accepted a client’s payment for $100k worth of furnishings. Admittedly, instead of accepting that money as a retainer (i.e. liability), I accepted it as an invoice (i.e. income)..Big no-no. The problem with that was that it looked like I just made a nice $100k at the end of the year that I was now responsible for paying income tax on. THEN in Q1 the following year, when I used those funds to order all the furnishings, I looked like I had a huge deficit on my books. Needless to say, my books are now set up to accept funds the proper way (as a retainer/ liability) and I no longer work with that bookkeeper.
Here are a few simple steps to get started.
Set an end-of-year meeting with your bookkeeper. Make sure to ask them what would be helpful to have prepared.
Discuss with your bookkeeper about what needs to happen before you close the books on December 31st.
Review all open proposals, POs, and invoices. Reconcile everything that can be.
Planning to raise your rates in 2022? Yeah, you are! Time to finalize that and let any clients know who may need a heads up. Earlier the better!
PLAN TO LOVE ON PEOPLE
My favorite part! We can’t do our business alone. The people who help give your business wings need to be celebrated. Look at all the people involved in your business: Clients, Vendors, Trades, and of course employees. What can you do for them to show them how much they mean to you as a person and thank them for their contribution?
Clients - Budget and plan for client gifts. Not every client may get the same gift, a Designer-for-a-Day client may receive a nice card or small candle, while your full-service clients may receive something more customized. Create your list and decide what you’ll prepare for each one.
Employees - Do something special for your employees (even if they are part-time or contracted team members). Maybe it's a nice dinner, a fun night of bowling, a cooking class, or an escorted holiday lights tour. Consider inviting their partner/spouse.
Contractors/Trades Team - Find a way to show your skilled tradespeople how much you appreciate them. These gestures will help you forge a deeper connection with them, ensuring you have a trusted partner for years to come. Consider happy hour at a beer garden or tickets to a sporting event. Even a simple card or gift basket will go a long way.
Preparing your Small Business for End of Year PART II - Financials
