Revisit. Review. Rewrite. Rejuvenate.
Start Thinking About 2022 – Conduct an End of the Year Business Review
Whether you’ve recently started your business or have been working at it for a few years, every business should conduct year end reviews. Here’s things to examine besides your profit and loss statements.
Market Test – Do some research and polling to see if there is a need or demand for the kind of business you are doing? Maybe there is an aspect of the service you provide that is more in demand?
SWOT – SWOT stands for Strength, Weaknesses, Opportunities and Threats. Conducting a SWOT analysis is key for starting and running a business. The answers should be created as a team. This analysis will guide your business plan.
Business Plan – Review your business plan. If you don’t have a business plan, develop one. This is a blueprint for every part of your business from your location to operations. Revisit your plan every year and make adjustments. There is a free business guide where you can write out your plan.
Capital – Determine how much money you need to operate and sustain your business. Know where the funds are coming from. This is particularly important if you are a startup business and may not make a profit for several years. Established businesses need to acquire funding for expanding their business. Draw up a five year plan to help you with your figures.
Location – Access where you conduct your business. This could be out-of-your-home or renting a space to accommodate your services and supplies. Is the location advantageous to growth or are the costs cutting too much into your profit?
Business Structure – What kind of business do you have? Sole proprietorship or a corporation? There are resources to help you determine what the best business set up is for you. Most startups and small businesses set up as a Limited Liability Company (LLC). Perhaps it’s time for your company to incorporate?
Brand – Does your company name represent your business? A tagline or slogan can clarify any confusion. Is it time to evolve and update your brand? Created a company logo and website that reflects your product and services. This will give your business credibility.
Register – Is your company name registered? You may want to register your business to protect the name. There are four ways to do this: state registration, federal registration (trademark), Doing Business As (DBA) and a domain name.
Tax ID – Every business needs an employer identification number (EIN) to pay federal and state taxes, hire employees, open a bank account, and apply for business licenses and permits.
License – Most businesses in California need a license or permit. You apply for one in the city where you operate your business. You’ll need to get a federal license or permit if your business activities are regulated by a federal agency.
Contractors can get their license online. Licenses need to be renewed every 2 years with the CSLB. You have within 5 years to renew an expired license. Requirements and fees depend on your business activity and the agency issuing the license or permit. https://www.cslb.ca.gov/contractors/maintain_license/renew_license/
Bank Account – Each business should have a designated bank account to handle all the money you spent or received. There should be no co-mingling with personal accounts.
There’s a resourceful free online business guide by the U.S. Small Business Administration that covers all the components to building a successful business.
Running your own home improvement business is very satisfying but is a lot of work. We all need help. TheHomeMag wants you to be successful and looks forward to sharing in a prosperous New Year with you! Please contact us (949-478-3951) to market your business. Check out THM Toolbox, our website for business professionals.