End-of-Year Planning Tips for Small Business Owners

It might still technically be summer, but planning for end-of-year isn’t something you want to put off. Small business owners like yourself benefit greatly when they start year-end planning early, rather than waiting until it’s crunch time. You have the power to set your business up for success in the new year just by starting the process a little sooner. Here, we’ll dive into 5 year-end planning tips you can start tackling today.

1. Check Financials and Make a Plan

It’s tough to be on top of your financials when you’re busy running a small business, so take this end-of-year planning as an opportunity to get a clear picture of where you stand. First, assess your business’s current cash flow and identify areas you could reduce expenses. Know where you are financially and what you have coming up for the rest of the year. Once you’re equipped with your current revenue and expenses, start forecasting your revenue and expenses for next year. Need to borrow cash or get a line of credit? This is where a meeting with your accountant could prove helpful—they’ll be able to make sure your business is able to support a loan repayment.

2. Review Staff and Payroll Needs

In addition to conducting performance reviews for employees, end-of-year is a great time to assess your staffing needs. Were there times when staff was too thin or too much? Do you need to start adjusting for seasonality or make cuts across the board? You’ll also want to make certain your payroll records are updated and comply with any necessary regulations.

3. Focus on Risk Management

 Any end-of-year business plan should include a focus on risk management. Small businesses don’t have the huge wallets that larger corporations do, so they’re often just one mishap away from catastrophe. Risk identification requires you to consider both internal and external factors that could impact your business, such as economic fluctuations or technological disruptions. You’ll then want to assess the potential impact and likelihood of occurrence for each identified risk, then develop mitigation strategies to minimize or eliminate risks. If possible, consider having a third party complete a formal risk assessment to produce a risk register and recommendations.

4. Think Through the Customer Experience

Your end-of-year planning sessions are ideal to gather and analyze the customer feedback you’ve gotten throughout the year. Using the data behind your customer sentiment, you can take a deep dive into what works and what doesn’t, and where you can make improvements. Additionally, you might consider reviewing your client base, purging old email lists, and attempting to reach a different subset of customers.

5. Keep Cybersecurity Top-of-Mind 

With Cybersecurity Month approaching in just a matter of weeks, it’s important to remember this is not an area for small business owners to overlook. According to the 2024 AFP® Payments Fraud and Control Survey Report from the Association for Financial Professionals (AFP), 80 percent of businesses fell victim to payment fraud in 2023—a 15 percent increase from the previous year. To help mitigate the risks, talk with your merchant services provider about strategies to reduce fraud. Additionally, take a hard look at your data backup and recovery procedures to ensure important customer information is kept secure.

When it comes to marketing tips, financing info, and all things small business, turn to the experts at ARF Financial. Our blog, the Financial Pantry, houses a ton of great content to help you navigate the waters of owning a small business. And when you’re in the need for a small business loan or line of credit, look no further than our pros. Over the decades, our team of loan consultants has helped tens of thousands of businesses just like yours secure funding. Stop by today to learn more about how we can help fund your success!