It’s a fresh New Year and the time to start planning for 2021. As a professional photographer, I perform 5 tasks each year that are essential to setting my business up for success. Each of them provides me with data and information that are crucial for planning out the year ahead. In today’s Newsletter, I am sharing these 5 essential activities with you.
1- Review Your Numbers: The first activity you will want to do is review your numbers from the prior year. Review your total sales and expenses and match them to the goals you set for 2020. How did your business perform? How was your spending? Where are the gaps and what changes do you need to make in 2021? Knowing your numbers is powerful data to guide your decision making in 2021
2- Create An Expense Budget: Once you’ve reviewed your numbers from 2020, start to create an expense budget for 2021. What equipment will you need this year? Training or travel? Typically, business expenses equal about 25% of total sales (we’ll get to that in a sec). Start to think about what expenses you will need, make a list and create a budget.
3- Set Your Sales Target: Setting a sales goal is the most important task you can do to set yourself up for success in 2021. No more guessing blindly at what you need to make. Review your sales from 2020. Did you make what you needed? What will you need to make in 2021 to cover your household costs and business expenses? This can be a cumbersome task because NO ONE likes to do their financials, but it is SO necessary. Take the time to sit down and list it all out and don’t forget to include your business expenses and taxes.
4- Perform a Lessons Learned: Every year you will want to sit down and look at what went well and what was challenging from the prior year. Think through your business process and brainstorm all the things you ROCK at, then list out the major pain points in your business. The things that went well will become the areas where you will grow your business. Pain points become the changes you will make in 2021.
5- Set Goals: Okay, you know that lessons learned exercise you just performed? These items will serve as the foundation for the goals you will set for your business in 2021. Make goals realistic and attainable. Be specific and list out what actions you will need to take to achieve your goals. Start with 5-7 goals so you have a clear focus and can make progress on growing your business.
Best of luck in all your success in 2021!