4 New Year’s Resolutions Business Owners Should Stick With

Turning to a New Year on the calendar gives us the chance to turn a new leaf in terms of our habits as business owners. Too many businesses fall victim to bad practices rather than genuine market failures, after all.

Give your business and yourself the chance to flourish by holding yourself to the following four New Year’s resolutions:

1.   I Resolve to Know My Balance Sheets Backwards and Forwards

Having an accountant affords you the joyous opportunity of not wrangling with numbers for several hours a day. Nevertheless, business owners should still be intimately familiar with their books in order to make smart, insightful business choices. Otherwise, you end up trusting the advice or perspective of someone else when it comes to making major decisions.

Make it a point to sit down with your accounting staff for a few hours each week and familiarize yourself with the current financial situation of your business, including debts, accounts receivable, capital assets, liquid holdings and other critical factors. The more you become accustomed to seeing these statements, the more granular control you can exert over operations.

 

2.   I Resolve to Not Back Down from Growth Opportunities

While some business owners take on too much risk and expand too aggressively, a more common problem among privately-held businesses is to avoid risk at every turn. Resting on your laurels is no way to secure the financial future of your family or your operations.

Instead, take stock of your current opportunities to expand your customer base or territory coverage. Investigate online sales options, invest more in marketing and otherwise explore what the future could have in store for your business.

Remember that Kodak and Xerox were both once major market players, but now Kodak is barely visible, while Xerox has rapidly adapted to changing business technologies and needs. The difference lies in being content versus being aware of emerging opportunities.

 

3.   I Resolve to Give My Employees the Recognition They Deserve

Don’t get us wrong: no employer should be tolerant of employees that take advantage or spectacularly fail to live up to reasonable expectations.

However, many employees work hard at first only to feel discouraged from participating enthusiastically later on. This diminishing effort stems from a lack of recognition as well as feelings of stagnation within a company.

Instead, honor your most talented employees with praise, formal recognition or regular pay raises. You should also give employees with genuine skills the authority to make decisions that improve their own workplace. Put simply: if you want the people who can do their jobs best to stick around, give them a solid reason to.

 

4.   I Resolve to Plan for an Exit Strategy Now Rather Than Later

Few of us want to be doing the exact same thing for decades at a time. Yes, some of us can have the luxury of letting someone else run our business for us while we enjoy income streams, but other times it makes more sense to hand off the reins for a business we are no longer emotionally invested in.

Many of us also admittedly take our exit strategies for granted rather than giving them serious consideration.

If you think that you have more to gain from selling your business than from sticking around too long, do not hesitate to discuss the proposition with an experienced Nevada business broker. You can learn more about the process for selling your business by reading the corresponding information page and then contacting Jamie Schwartz of Schwartz Strategy of Valuation today.



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