Compare

·         Gross sales

·         Cost of Goods

·         Marketing/Advertising

·         Payroll

·         Other Expenses

·         Net Profit

Analyze the outcome

·         Did you fare better or worse than last year?

·         Are you surprised by any of these numbers?

·         If you lost money compared to last year, are you able to determine the reason(s)  (ie: slowing economy, rise in cost of goods, higher expenses, etc)?

·         Do you need to adjust your pricing or find a way  cut to controllable expenses?

·         Do you need to review or revise your marketing strategies?

      Review your business plan

·         How does your plan compare to the direction your business has taken?

·         Update your plan to reflect the current market, trends and new goals.

      Review your record keeping practices

·         Are you keeping accurate and detailed records?

·         Are you using an accounting or bookkeeping system that is practical for your type of business and meeting your needs?

·         Are your financial reports (profit & loss, cash flow,  balance sheet, etc.) accurate and easy to access at any given time?

Other Points to Evaluate

·         Are you adequately insured?  (Liability, fire, theft, life, health, disability, etc.)

·         Do you have a plan of action for others to follow in the event of a personal emergency, illness or unexpected death?

·         Are your records backed up (in the event of computer crashes) and kept in another location (in case of fire)?