5 Ways to Strengthen Your Business in 2020

Posted by Keith Blankenship on Mar 12, 2020 8:05:37 AM
Keith Blankenship
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Now that we’re a few months into the new year, it’s a great time to evaluate how far along you are in achieving your business goals, and outline steps you can take in the months ahead.

Below are five ways to strengthen your business by reflecting on the past, and looking forward:

  1. Compare last year’s financial performance to budget.
    Did you meet the financial goals you set for yourself last year? If not, why? Analyze variances between budget and actual results. Then, evaluate what changes you could make to get closer to achieving your objectives in 2020. If you did meet your goals last year, identify precisely what you did right, and build on those strategies for this year.
  2. Create a multiyear capital budget.
    Look around your offices or facilities at your equipment, software and people. What investments will you need to make to grow your business? These investments can be both tangible (new equipment and technology) and intangible (employees’ technical and soft skills). Equipment, software, furniture, vehicles and other types of assets inevitably wear out or become obsolete. You’ll need to regularly maintain, update and replace them. Lay out a long-term plan for doing so; this way, you won’t be caught off guard by a big expense.
  1. Assess the competition.
    Identify your biggest rivals over the past few years. Discuss these competitors and their successful strategies with your partners, managers and advisors. Also, honestly appraise the quality of what your business sells versus what competitors offer. Are you doing everything you can to meet—or, better yet, exceed—customer expectations? Devise some responsive competitive strategies for the next 12 months.
  2. Review insurance coverage.
    It’s important to stay on top of your property, casualty and liability coverage. Property values or risks may change—or you may add new assets or retire old ones—requiring you to increase or decrease your level of coverage. A fire, natural disaster, accident or out-of-the-blue lawsuit that you’re not fully protected against could devastate your business. Look at the policies you have in place and determine whether you’re adequately protected.
  3. Analyze market trends.
    Recognize the major events and trends in your industry over the past year. Consider areas such as economic drivers or detractors, technology, the regulatory environment and customer demographics. In what direction is your industry heading over the next five or ten years? Anticipating and quickly reacting to trends are the keys to a company’s long-term success.

These are just a few ideas for looking back and ahead to set a successful course forward. If you have any questions about how to strategically plan for the future of your business, leave a comment below, or feel free to reach out to me directly. We can help you review the past year’s tax, accounting and financial strategies, and implement savvy moves toward a secure and profitable future for your business.

Topics: Accounting, Business Advisory