| INTRODUCTION If you do not take control of your | | | | First, you will clearly see if you like or do not like how |
| business, it will take control of you. With that thought in | | | | 2010 is shaping up and you can make changes to your |
| mind, we recommend the following five tasks to help | | | | operations to enhance or make more realistic the |
| you take control of your business, finish the year | | | | results. Second, monthly budget versus actual reporting |
| strong, and make sure you are positioned for a healthy | | | | with a focus on the gross variances (more than |
| 2010: Plan for Tax, Plan for 2010, Collect Your | | | | 5-10%) will allow you to make adjustments during the |
| Receivables, Fortify Your Banking Relationships, and | | | | year more quickly and effectively. |
| Improve Your Web Presence. | | | | COLLECT YOUR RECEIVABLES |
| PLAN FOR TAX | | | | Most businesses struggle to collect between |
| Business Owners have the most complex tax issues, | | | | Thanksgiving and New Year's Day. This does not |
| but they also have the most tax-saving opportunities | | | | have to be you. Review your list of receivables every |
| available. Every business owner should meet with their | | | | few days between now and the end of the year. |
| tax CPA BEFORE the year is over. Our experience | | | | Your customers' accounting staffs will take time off. |
| shows that although this may cost a little bit of money, | | | | Find out when that is and make sure they pay you |
| it usually comes back at least ten-fold in the form of | | | | before they leave on vacation. Track the promises |
| tax-savings. We find that if these meetings are run | | | | they make and politely and professionally hold them |
| properly, our clients usually save thousands if not tens | | | | accountable to those commitments. |
| of thousands of dollars in tax. | | | | FORTIFY YOUR BANKING RELATIONSHIPS |
| Here is how you make the meeting efficient and | | | | Your banker has had a tough year. You might want to |
| profitable. Schedule the time with your tax CPA at | | | | consider taking your banker to lunch before the year is |
| least 1-week in advance. At least three days before | | | | over to renew your relationship and find out how you |
| the meeting, send your tax CPA all the information | | | | can better become one of the bank's favorite |
| they will need to estimate where you will be at the end | | | | customers. If the bank has lent you money, make sure |
| of the year. This includes financial statements from the | | | | you are compliant with all of the loan covenants. With |
| business through October or November (cash or | | | | the credit markets still quite a ways away from |
| accrual based on how you file) and a description of | | | | stabilizing, your bank may become one of your most |
| anything major that has changed during 2009. We also | | | | critical assets, if it isn't already. |
| recommend you include an agenda of all of the items | | | | If you are unsure how to best approach any of these |
| you would like to discuss as well as strategies you | | | | first four recommendations, or if you would like help |
| have heard about that you might like to explore. During | | | | with any or all of these items, you may want to |
| the meeting, follow the agenda and document the | | | | consider working with a CFO consultant to help guide |
| decisions you make; then implement everything before | | | | you through these and other items that will help your |
| the year is over. | | | | 2010 be prosperous. |
| PLAN FOR 2010 | | | | IMPROVE YOUR WEB PRESENCE |
| If you are a business owner who escapes planning for | | | | It does not matter the industry in which you operate. It |
| each new year with an excuse like: "I don't know what | | | | is irrelevant if your customers buy your products or |
| will happen next year, so there is no need to plan for | | | | services online. Here is what does matter - our society |
| it," then we offer you a different perspective. If you | | | | will rapidly continue its trend towards online existence. |
| diligently plan for each new, then perhaps you can pick | | | | Regardless of where you are at with your online |
| up something to improve your current process. | | | | presence, you can do more. Do you have a blog? Are |
| You need to start by reviewing your 2009 budget, if | | | | you using social networking to its maximum potential |
| you had one, and how you performed relative to that | | | | for your business? Does your website generate |
| budget. Which assumptions remain valid, and which | | | | marketing and sales results? Can your website |
| need to be revised? Plug your old, new, and revised | | | | improve the experience your customers enjoy? The |
| assumptions into your income statement and balance | | | | right investments into your web presence can improve |
| sheet projections for 2010. What sales do you expect | | | | your cash, profit, and time. |
| and how do they need to be adjusted for season | | | | CONCLUSION |
| trends in your industry? Are your variable costs | | | | By completing these five tasks, you will empower you |
| increasing or decreasing from you own price | | | | and your business to finish the year strong and |
| reductions or increased labor, material, and other | | | | prosper in 2010. With economic turmoil on the horizon |
| costs? What fixed costs will remain the same in 2009, | | | | for most if not all of next year, those who focus on |
| and which will change? Why? How will your current, | | | | these and other critical tasks will be in the best position |
| debt-to-equity, days sales outstanding, working capital, | | | | to survive the tough times ahead and thrive when our |
| and other key rations change throughout the year? | | | | economic outlook turns more positive. |
| Once all of this is put on paper, two things will occur. | | | | |