If you want your small business to be successful, make a financial plan and check it against the facts on a monthly basis -- then take immediate action to correct problems. That's the advice of business coach C.J. Hayden, author of Get Clients Now!: A 28-Day Marketing Program For Professionals & Consultants (AMACOM, 1999).
According to Hayden, "Entrepreneurs tend to be optimistic mavericks with a high tolerance for risk. Many ignore expert advice, and don¹t even look at their financials until tax time, unless the checking account is overdrawn." Here are Hayden's tips for achieving year-round profitability.
- Create a financial plan for your business. Know how much revenue you expect to bring in each month, and project what your expenses will be. If you need it, get help from business planning books, software, or an accountant.
- Review the plan monthly. This is where most small business owners fail. Even if they have taken the time to prepare profit and loss projections, they often let them sit in a drawer. It's not enough to have a plan -- you have to review it regularly.