The month of November every year for me is my time to celebrate the successes of the past 12 months, reflect on where I had challenges, take stock and refuel for the coming year, it’s your ticket to success!
You should do this too; take stock of different aspects of your life, your spiritual and personal development, your business and career, your finances. It’s time to take stock and get ready for the new year ahead.
As a business person, may be you normally do this in December, it doesn’t matter, what’s important is that you take a serious look at your strategic plan for your finances to determine what you’ve done well and what needs to change. The time is ripe to assess your finances!
In fact, your plan should be reviewed at least once a quarter so that proactive adjustments can occur regularly. Successful Business People know that success is not accidental, but rather, it occurs incrementally through consistent and deliberate efforts.
Let’s look at a few steps to taking stock of your finances…
I like to ask myself, have I been financially intelligent?
Look at your progress
Has your overall financial position improved in the past year? Get out your bank statements and work out whether you have reduced your debts and loans over the past 12 months or rather you have increased your earnings in the past 12 months. What is your financial balance sheet reading?
Think about what you want to achieve for the coming year and where you want to be next year November. Put your financial activities in order. What expenses do you need to reduce and what sources of income must you work on or not?
Update your Expenses statement
Do you know how much you spend in a month so you can plan adequately for it? Your budget needs to be regularly updated to stay relevant and reflect your financial priorities. If you don’t know how much you require how can you ensure you create the adequate income? Adjust columns accordingly for income and spending changes.
Set your new financial goals
Set earning goals, giving goals, savings goals, and work out how you’re going to reach them. Plan for your giving my pastor says, if you’ve dropped behind, work out ways to get back on track and make up the deficit. How much money do you want to make in the coming year, be strategic in your planning, for example if your goal is to make £100K in 12 months certainly you need to figure out how to make £8,500 monthly! Don’t just say I will make £100,000
Create your various money jars
You can’t plan to spend all your money each month, your key to financial freedom is your cash flow. Hence create money banks for different purposes and stick to them – Plan time & finance for your personal development (books, courses, seminars, coaching and mentoring sessions), finance for your rejuvenation – yes your vacations, there is more to life than just paying the bills and definitely your escrow account – money you don’t touch that you can use to take advantage of business opportunities. Between now and the November next year, aim to stick to the jar system
Impulse buying is a fast track to bad debt, so resolve to spend sensibly. Look for discounts and save for big-ticket items, don’t finance them with credit.
What about taking stock of your business?
- Be realistic about your successes and challenges. There is nothing wrong with challenges, but understanding them is the key to sustainable success. To what degree did you succeed or fail? What were the contributing factors? What can you improve or change?
- What are the strategies that proved to be winners over the past 12 months? Analyze the data and facts for proof. Reapply these strategies for the coming year (but first, confirm that these strategies continue to be aligned with strategic goals and objectives).
- Reset your strategic goals and objectives. Don’t automatically assume numbers need to go up or go down. Make well informed plans by examining your entire business picture, the business environment around you, and the impacts and relationships between the two.
- Determine what stays the same and what you will change. No magic here – just get it done!
- Take responsibility for your success, do you need help and accountability to achieve your desired success in business? Get a mentor or coach!
“It is crazy to be going for the trial and error approach to business, just get a mentor and follow a proven success path.” – Armand Morin
“Without a mentor your very best thinking has got you exactly where you are today” – Raymond Aaron
It’s a good thing to be a thinker but don’t complicate issues you know the true answers to the questions above just answer them and take the corresponding right actions… It’s a month of ingathering dear business people!
You are welcome to join us in the Free Business Success Class (BSc) on Yookos