3 Financial Decisions to Make Before the 4th Quarter
There is so much attention focused on the other quarters of a financial year, that we forget how important the end of a 3rd quarter is. This is the point at which you still have time to adjust your path and meet your goals before the year ends. And it isn't too early to plan for the next year, too. I have 3 financial decisions that I always make at this point in the year. Use them to help you end 2021 in a strong position!
1. Review Reports
The decision to make here is if you need or want to adjust anything as we go into the 4th quarter. How is your cash flow? What is your overall profit margin for the year? Where would you want to adjust? You might decide to add more consulting time to boost your profits or you might want to adjust your spending for tax reasons. Set aside a full day for a deep dive into your finances and your goals! And FYI, this is also a great time to look at your staffing and how you're compensating any employees.
2. Plan for Year-End Spending
Speaking of your employees, are you planning a year-end bonus? The 3rd quarter is the right time to start thinking about any holiday or year-end spending. Not just for tax reasons, but to budget for your client gifts and anything that you plan to give your staff, subs, and other partners. If you make those plans in September, you still have time to order any cards or personalized presents. And you'll know how much you have to spend for each of your clients, too.
3. Start Plotting Q1 Goals
Now that you have a fairly good idea of how 2021 will end for you financially, you really want to look ahead a bit into 2022. Not those yearly goals, quite yet, but a shorter term plan. The first part of any year is a bit slow in our business, so what will your plan be for marketing your business? And can you take advantage of any slowdown to pitch new projects or to plan photo shoots? Do you have a cushion if there is a slower time for you financially? All of those things should be on your list to review as you begin to look ahead.
The key to all of this plotting and planning is that it will help you deal with whatever comes your way in business. And it is far less stressful when you have a plan instead of sticking your head in the sand! To help you get started, download my FREE 3rd Quarter Business Review Document!