How Well Is Your Business Positioned For 2012?

There are several aspects to knowing the position of your business:

1. Where is it in the business or product life cycle?
2. What percentage of market share do you own?
3. How well do actual sales compare to budgeted projections?
4. How do we stand when it comes to cash flow?
5. Have we been able to retain enough earnings to weather a downturn?
6. Is our management team watching costs and making good decisions?
7. What is our cost of goods percentage, and is that within reason ... or acceptable?

The days of being able to say everything is "fine" and keep plodding along until you fall off the cliff are behind us. As a business owner, it is vital to stay on top of the information that affects your business. You need to know your position so you can keep moving forward or know when to step back, re-focus, and move forward again ... perhaps in a new direction.

Since you are probably too close to the business - which you should be - it is a good idea to bring in an independent, 3rd party professional to help you assess where your business is and, most important, offer suggestions on how to move forward and achieve full capability. The new year is already under way, so the time to act is now to make 2012 your best year ever!

Business Owner's 2012 Resolutions

Thought we'd share what we find may be missing from your repertoire as a business owner. We have found that these are helpful suggestions any time of year. They're also good resolutions to consider in 2012 to manage and grow your business. As much as we deny it, we need professional help so we can concentrate on doing what we love - running our business!

Business owner's resolutions for 2012:

1) I will rely more on my legal counsel to ensure that my company and I are protected when it comes to any contracts, proposals, or other legal documents, especially franchise agreements.

I will talk to my lawyer about my personal estate, too, and make sure my will is up to date when it comes to designated heirs.

I will also discuss my succession plans for the business, and while I'm at it, check with my attorney on how my business is established to ensure it's the most beneficial legal entity for me, my family, and the business.

2) I will check with my business insurance agent at least twice this year to make sure I'm adequately covered.

I will talk to my agent about disability coverage, especially since I travel a lot on business and I've had employees calling in sick quite a bit lately.

I will ask about Key Man insurance as part of my succession strategy and make sure my beneficiaries are correct on all policies.

I also want to make sure my life and my property - vehicles, too - are adequately covered. It will be hard to replace me, so I want to protect your legacy as best I can.

3) I will set up monthly appointments with my CPA (or accountant) to look over the financial statements for my business. Having my accountant compile these statements, including my balance sheet, income statement, and statements of cash flow and retained earnings, will decrease the chance for recording errors.

I will rely on these statements to give me more reliable information on which to make decisions about my business. I will also count on my accountant to answer the questions I need answered.

I will get my accountant more involved in my business so they can stay on top of potential tax situations that may arise ... and I vow to avoid waiting until the end of the year to see my CPA (or accountant) with my tax information ... when it's too late to do anything about it!

4) I will place more faith and trust in my banker and visit with her every month or two in 2012.

I know my banker wants to see me succeed and is there to help me any way she can.

I will share my financial statements quarterly (or more often) with my banker to keep her informed. I need her to bat for me with the government inspectors and auditors looking over her shoulder at my loan portfolio.

I will ask about services I've been wondering about whether the bank can provide, and I will talk to her if my accountant suggests a line of credit to get through cash flow shortages.

5) I will save money on advertising by working more closely with a professional business planning and strategic marketing firm - Fluidity comes to mind.

I will revisit my business strategy, even if it's on that proverbial cocktail napkin, and make sure my focus is clear. A clear, market-driven focus will enable me to deliver the right message to the right customers and prospects through a vehicle that encourages them to do business with me and my company.

By failing to plan for the growth of my business, I am leaving it all to chance.

To your success and unparalleled profitability in 2012!