Here’s your 10-point beauty business plan for 2021

Ria-Jaine Lincoln, an accountant that specialises in helping beauty businesses, shades 10 points to consider to help navigate challenges in 2021 and aim for success…

The start of a new year is usually the time when people focus on their business and personal goals. Many speak of starting new diet and fitness regimes but I am also expecting to see a special focus on business planning goals, financial performance and profit level reviews – particularly after the consequences of the pandemic and owing to the lockdown.

After working with businesses up and down the UK of all sizes, and through speaking with hundreds more through email or social media over the course of the pandemic, there are a number of things that should be considered moving forward:

1. Would your business continue to survive a big challenge? This does not necessarily mean this national lockdown, but anything from ill health to an extended time off work due to other reasons. This applies to all businesses, big and small, start-ups and established businesses.
2. How can you protect yourself and your income as a business owner?
3. What does your cash flow look like both short term and long term?
4. What are your business goals? This is one that I invite all business owners to question as no doubt the last 12 months have changed us all in one way or another and our goals may have shifted slightly. How good do you want to be? How successful do you want to be? How much money do you want to make?
5. Do you have the right work/life balance?
6. How can you streamline your business to reduce your stress levels and enjoy your role?
7. Are your business or personal outgoings excessive? Think about the changes you can make and carefully manage any tax or loan repayments that will be coming up this year.
8. Have you set up a private pension? Most directors and sole traders often neglect this important task and with savings heavily reduced during the pandemic, what does your future financial position look like?
9. Have you considered your exit strategy? An important question to ask at every stage of business, all business owners should have an idea of whether the business is built for sale or even inheritance. If it isn’t it may be worth thinking about this for the future.
10. Are your business processes helping you to work efficiently and how can you increase efficiency to increase profits? Automation is key, be it for booking appointments to managing your bookkeeping.

Often, the feedback I receive is that business owners are too busy in the business to think about most or all of the above and the last year has highlighted how much work there is to do to fully protect businesses and the wealth of the business owners.

The Telegraph reported last year that 20% of businesses fail in the first year and 60% fail by the third year. By paying attention to the business plan, financial data and planning for the worst you can improve the chances of success for you and your business this year.

www.riajaineaccounts.co.uk