Time to review your business and plan for the next year.

Posted on 31 Dec 2022 19:00 in Small Business Hacks
by Zainab Sohangpurwala

As 2022 comes to an end it is the perfect time to analyse your small business's growth and project and plan for the future. Read along to know how to do it and why it is so crucial.

As a small business owner, it's important to review the growth and progress of your company regularly. This not only helps you understand how your business is performing, but it also allows you to identify areas for improvement and make plans for the future. In this blog post, we'll discuss some key steps you can take to review your yearly business and plan for the next year.

Step 1: Review your financial statements

The first step in reviewing your business is to take a look at your financial statements. This includes your income statement, balance sheet, and cash flow statement. These documents will provide you with a clear picture of your company's financial health, including your revenue, expenses, and profits.

In your income statement, pay attention to your gross margin (gross profit divided by revenue) and net margin (net profit divided by revenue). These ratios will tell you how much profit you're making on each sale and how much of your income is being used to cover expenses. If your margins are low, it may be time to consider ways to increase your prices or reduce your expenses.

On your balance sheet, pay attention to your assets, liabilities, and equity. This will give you an idea of your company's financial strength and whether you have the resources you need to meet your financial obligations. If you have a lot of debt or low equity, it may be time to consider ways to improve your financial position.

Finally, your cash flow statement will show you how much cash is coming in and going out of your business. If you're not generating enough cash to cover your expenses, it may be time to consider ways to increase your cash flow.

Step 2: Review your marketing and sales efforts

In addition to reviewing your financial statements, it's also important to take a look at your marketing and sales efforts. This includes analyzing your customer acquisition costs, conversion rates, and lifetime value of a customer.

Start by calculating your customer acquisition cost, which is the total amount of money you spend on marketing and sales divided by the number of customers you acquire. This will give you an idea of how much it costs to acquire a new customer and whether your marketing and sales efforts are paying off. If your customer acquisition cost is too high, it may be time to consider ways to reduce it, such as by targeting more qualified leads or improving your sales process.

Next, calculate your conversion rate, which is the percentage of leads that turn into paying customers. This will give you an idea of how effective your sales process is and whether you can close deals effectively. If your conversion rate is low, find new ways to improve it, such as by offering better training to your sales team or by streamlining your sales process.

Finally, calculate the lifetime value of a customer, which is the total amount of money a customer is expected to spend on your products or services throughout their relationship with your business. This will give you an idea of how much value each customer brings to your business and whether it's worth investing in customer acquisition and retention efforts.

Step 3: Identify opportunities for growth

Once you've reviewed your financial statements and marketing and sales efforts, it's time to start thinking about growth opportunities. This could involve expanding into new markets, launching new products or services, or finding new sources of revenue.

To identify opportunities for growth, conduct market research to understand the needs and preferences of your target market. You can also talk to your customers and ask for their feedback on what they'd like to see from your business. You can also seek out partnerships or collaborations that could help you reach new customers or expand your offerings.

Step 4: Develop a plan for next year

The review and planning process is crucial for the success of any small business. By taking the time to carefully analyze and evaluate the past year, small business owners can make informed decisions about how to maximize gains and reduce losses, as well as plan and project for the future. So, it's time to review your yearly business and plan for the next year. 


Shimbi Growth Labs
The team that helps you grow your business!

Sign up below for our newsletter to receive exclusive business growth tips in your mailbox

Established in 2005, Shimbi Labs was born with the idea of developing simple, powerful yet affordable software for freelancers and small businesses to help them grow.

Shimbi Labs is the creator of 

Budo - Simplest Website Builder
Ninjin - Easiest Online Store Builder
Shimbi Invoice - Online Invoicing made easy.


About the author

Zainab Sohangpurwala     
Passionate about helping companies grow their business via content marketing.

Create your new website or blog for free.