Build These 9 Good Business Habits Now and Thank Yourself Next Year

No matter which way you slice it, 2020 was a challenge for most of us — and for some of us, it was a BIG challenge. A lot of small businesses went poof this year, and many more are struggling.

With the holiday season coming up, this is a traditional time to make lists of what you’re thankful for, and express some gratitude. But let’s be honest: For a lot of entrepreneurs, what’s there to be grateful for?

I’ll bet you can find some points of gratitude in both your business and personal life (and if your business is one of those that picked up during the pandemic, congratulations!), but let’s not force it. There are enough cheesy what-are-you-thankful-for articles out there already.

Instead, let’s look ahead. Even if you’re not feeling the gratitude right now, next year might look better, especially if you set up some good business practices now that will help carry you through future ups and downs. Here are 9 low-cost ideas to get you started.

1. Start saving your receipts, seriously

This is pretty simple stuff, but it’s important: If you’re not already doing so, start saving your receipts and build a system for keeping track of them. That might be as simple as a half hour blocked off on your calendar once per week to collect receipts, scan them (if needed), enter them into your books and tuck them away in a specific folder (physical or virtual).

2. Catch up on your bookkeeping

If times are slow, it’s a good time to catch up. Spend some time going through your books and:

• Categorize your expenses
• Move money between accounts as needed (especially if you have money lingering in non-FDIC-insured accounts)
• Make sure all your accounts are properly connected to your bookkeeping software
• Figure out when you should be filing taxes
• Learn which numbers in your books are meaningful indicators of success

3. Set up Profit First accounting

Whether you’re fully booked, struggling to bring in revenue, or totally screwed and dreaming of future opportunities for entrepreneurship, this is a perfect time to learn about Profit First. Profit First accounting is neither greedy nor something that comes naturally to a lot of business owners. It might seem more logical to put your expenses first — after all, if you can’t keep the lights on, you can’t keep the door open. But if you neglect making profit and think of it as a nice surprise, your business will struggle. Putting profit first is the key to a sustainable business. Learn more about how it works.

4. Help someone else be grateful

Is there something kind and low-cost you can do for your employees? If you’re not sure whether your ideas would help or hurt, the blog Ask a Manager regularly dishes advice on how to treat your employees right (along with some juicy horror stories when things go awry).

If you’re able, you can express some gratitude for good fortune and/or planning this year and make someone else thankful, too, by donating to charity. Here’s how to make sure you’re donating to a reputable charity and keep records so you can deduct the donation.

5. End the feast or famine cycle

There’s nothing better than the feeling of a full client schedule or being in high demand. But what happens when that big contract ends or your client list naturally fluctuates? Will you have more business lined up to fill the gap, or be left scrambling?

The roller-coaster ride of too much business, to not enough business, to too much again is called the feast or famine cycle, and it’s mostly preventable with what I’m calling the mashed potato method.

6. Find ways to be more efficient

Now is an excellent time to look at all your systems and processes, even (especially!) the really boring ones. Can you go paperless? Where are you wasting time, money and/or effort? Do you need every software subscription you’re currently signed up for? Can you negotiate lower rates on anything?

Finding small ways to reduce your overhead now will serve you in the long term. 

7. Supercharge your habits

There’s a reason we mostly brush our teeth regularly: It’s a habit we established long ago. Think about habits you can establish now that you’ll look back on in a year and think, “Wow, thanks, past me! That was a great idea!”

The actions that form these habits might occur daily, weekly, monthly or yearly. If you’re drawing a blank, consider:

• What are two habits you will add to your daily routine that could make your personal life better?
• What are two habits you will add to your daily routine that could make your business life better?
• Is there a time of day when you’re more energized to accomplish these habits, at home and at work?
• Are there things you’ll have to give up to make room for these four new habits?

Like any habit building, you’ll want to start small; adding 10 new habits at once is no more likely to work in your business life than in your personal life. Here’s more on which routines you might consider adding.

8. Re-evaluate your situation

If this year has felt like beating your head against a brick wall, there might be a larger message than just “2020 sucks” (though that’s also true).

Is the direction of your business what’s right for you? Do you still love what you’re doing? Is the business sustainable? Is it profitable? Do you still like running or having a business at all?

As you ask yourself these questions, keep in mind that this isn’t meant to be a downer. It’s a chance to honestly consider your situation, motivations and mental state, then honor the answers that float up.

9. Make the rest of 2020 count

Just because some areas of our lives seem to be frozen in time, it doesn’t mean you have to hit the pause button on your financial success. Here is my veteran company bookkeeper’s take on what you should be doing for the rest of this year.

Let’s set you up for some next-year gratitude.

We regularly help our clients set up sustainable business habits with Profit First accounting. Schedule a complimentary call with me, where we’ll talk more about putting profit first.