Looking ahead to 2021 – essential (and achievable) ways to plan for your business
Ordinarily at this time of year, companies big and small are planning for the year ahead. But for many, that normal planning process has gone out the window this year amidst huge business uncertainty. Attempting to look months into the future when the present is so uncertain can seem, well, like a waste of time.
That said, we all know that planning is an important part of running a successful business and achieving your goals as a business owner. So we thought we’d give some achievable ways to plan for 2021.
Start with your personal goals
If there’s one tiny positive thing to come out of coronavirus, it’s that many people have pressed pause and really thought about their working life – whether they’ve got the right work–life balance, what they might want to change in the future, and so on.
Now is the perfect time to make a list of goals or changes you’d like to achieve next year, and action points to make those happen. For example, if you’ve enjoyed having more time for family life, you might want to work a four-day week in future, or impose a ‘no emails after 5pm’ rule, or even hire a virtual assistant to lighten your admin load. It may be that your personal goals will impact your 2021 business finances or resources (for example, budgeting for a virtual assistant), which is why we suggest doing this step first.
Then look at the business itself
In-depth plans may not be feasible right now. But as a basic rule of thumb, every business should be looking to plan for:
• Revenue. You don’t necessarily need a detailed, month-by-month forecast – a simple overall revenue target will do. The important thing is to plan whether your income is likely to grow, decline, or stay the same in 2021.
• Resources. Having worked out whether you expect business to increase, decrease or largely hold steady, it’s time to assess what skills and personnel the business will need.
• Expenses. On top of planning for your regular business expenses, remember to budget for any asset purchases that are on the horizon, as well as additional costs that result from the pandemic.
Of course, no plan is ever set in stone, even in a normal business year. But this planning process will help you look ahead to 2021 with a little more confidence. Plus, by working with an accountant – one who is passionate about strengthening your business – you’ll be well placed to manage whatever challenges come your way.
Learn more about working with Jupp Castle’s award-winning team of accountants.
(Tree photo created by standret – www.freepik.com)