The new year is almost upon us, making this a great time to review the past year’s achievements and undertake strategic planning. It’s a time to set realistic financial goals and review the succession plan. Attention to these matters ensures your business’s future success. However, business strategizing and succession planning are complex undertakings and are best done with the guidance of professionals. Following is advice from the experts at Cook and Company Chartered Professional Accountants.
Business Review and Goal Setting
Goal setting involves creating a vision of your company’s future by identifying your aims and objectives and determining the timing and sequence of meeting these. The following is a step-by-step guide to reviewing your business’s achievements and setting realistic goals for the upcoming year:
- Reflect upon this year’s performance. Look at the highlights and challenges. Consider your business’s strengths, weaknesses, threats you have mitigated, and opportunities taken. Let this reflection inspire your goal-setting for the new year.
- Define your mission and vision: Consider what you wish to achieve. Set guiding principles that provide a foundation for strategic planning and goal setting.
- Plan changes: List new projects and ideas. Consider what is needed to make them happen.
- Prioritize your new projects and ideas. Decide which are a priority and which can wait.
- Review revenue streams and set financial goals: Look at your current projects and the new projects you prioritized. Consider your possible income based on your products/services, audience, price point, and predicted sales.
Succession Planning
Succession planning is a procedure that identifies key positions within your business and develops plans to ensure your organization continues to have the leadership needed to fill these posts. It is about preparation and future-proofing your company. The following is a guide to succession planning:
- Identify the leadership positions critical to your company’s success, those that require competent, capable people.
- Determine the relevant skills, knowledge, competencies, and abilities needed for these roles.
- Calculate the probable time till these positions are vacant (retirement, career changes, etc.)
- Identify possible replacements in your company and analyze their skills and competencies. Look for gaps. Discuss your plans with these candidates.
- Design initiatives to prepare chosen candidates for the change of leadership roles. Look for ways to enhance and develop their leadership skills. Provide training and experiences.
- Evaluate and monitor your plan as it unfolds. Make changes/adjustments as needed.
Having trouble determining your business strategy? Need help with succession planning? Contact Cook and Company. Our professional chartered accountants are here to help!
