By: Sean Miles
As we step into 2024, practice owners are presented with a golden opportunity to reflect on their accomplishments, address shortcomings, and plan for the year ahead. Year-end or new-year planning is a vital process that can reveal what you do well, what you can do better, and set your path to improvement for the year ahead. We recommend that you explore three key aspects of planning for your business as you kick off the new year.
Assess 2023 Performance and Set Goals for 2024
Reflection is a powerful tool in business development. Take the time to assess your performance from 2023. Identify areas of success and celebrate achievements, but also acknowledge and analyze any unmet objectives. Understanding the reasons behind these shortcomings provides valuable insights into potential areas for improvement. What were your revenues and profits by month, who produced the revenue, and were there any trends or stories that you can identify? Perhaps the summer was slower, or maybe revenues were down in certain categories versus the prior year. Maybe you did not perform as you hoped in a certain service line.
With a clear understanding of your business’s strengths and weaknesses, it’s time to set new goals for 2024. Ensure that these goals are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). Whether it’s increasing market share, improving patient satisfaction, or expanding your service offerings, each goal should contribute directly to the overall growth and success of your practice. When we’re setting goals for clients, we like to understand where they want to be financially and work to map out a forecast that encompasses those objectives.
Build a Budget
A solid financial foundation is imperative for the success of any business. One of the first steps in new-year planning is constructing a budget for the upcoming year. Begin by analyzing your current financial state, taking into account revenue, expenses, and profit margins. Factor in any anticipated changes, such as expansions, new product launches, hiring needs, adjustments to pricing strategies, or additional expenses.
Consider collaborating with your employees and key stakeholders to gather insights into individual needs. This collaborative approach ensures that your budget is comprehensive and aligns with the strategic goals all the way down to the provider level.
Meet with Your CPA and Business Consultant
No planning process is complete without professional guidance. Schedule a meeting with your CPA and business consultant to ensure that you are maximizing financial opportunities and adhering to best practices. Your CPA can provide valuable insights into tax-saving strategies and compliance opportunities.
Similarly, a business or financial consultant can offer a fresh perspective on your business operations and forecasting for the coming year. They can help identify areas for improvement, recommend strategic changes, and guide you in aligning your business goals with market trends. The collective expertise of your CPA and consultant can be instrumental in shaping the financial health and strategic direction of your business in the new year.
Effective planning is a comprehensive process that involves financial diligence, goal assessment, and professional consultations. By reflecting-on and setting new goals, building a clear budget for 2024, and meeting with your CPA and business consultant, you can equip your practice with the tools and strategies necessary for success in the new year!
If you’re challenged with where to start and how to forecast and plan to reach your financial goals, use the contact form below to chat with an expert on our team.