We are well into the second half of 2020. It’s only natural for you to start thinking about your business plans, goals, projections, and changes for 2021. This advanced planning helps to ensure that you’re self-employed and have a well-defined mission statement. It keeps you on track for success. What are some of the essential tips directed at self-employed individuals? Here are seven worth considering.
Make 2021 the Year of Record Keeping and Organization
Maybe your record-keeping skills aren’t exactly exceptional. You may find yourself scrambling to find important documents and information. Why not let 2021 be the year that you get organized? That could involve investing in new software designed to streamline processes and help with organization. It could simply mean you need a new filing system.
Any improvements in this area will help your business to be successful and professional.
Set Up a Defined Benefit Plan for the Small Business You Operate
Another tip is to look into why your small business needs a defined benefit plan even if it is just you and you are self-employed.
The informative blog from Saber Pension linked above points out. Meanwhile, there are numerous reasons why self-employed individuals should move forward with a defined benefit plan. These reasons include:
- It allows for large tax-deductible contributions.
- Contributions grow tax-deferred.
- Benefits rollover at retirement resulting in further tax deferral.
- They aren’t subject to the 25% of compensation limit like other retirement plans.
Certainly, there are many other reasons. Saber Pension also offers details on each point so you can fully understand the reasoning. Saber Pension is a defined benefit actuarial firm. It is a third-party administrator that can assist you in designing, setting up, and administering your defined benefit plan.
Take a Look at Your Marketing Initiatives
Above all, the most common goal businesses have when entering into a new year is to grow their customer base. If this sounds familiar, and this is something you want to focus on, it will be important to examine your current marketing initiatives with a critical eye.
- Are they going far enough?
- Do they reach the ideal target audience?
- Are you getting the desired outcome (return on investment)?
- What else could you be doing?
In terms of the most effective marketing initiatives, digital is a must-have for any small business. Overall, you need to be active across a number of platforms. This also included having a robust and user-friendly company website, social media accounts, and so forth.
Are You Ready to Hire on Employees?
Moreover, as a self-employed individual, everything is up to you. All responsibilities lie on your shoulders. While that may be perfectly fine with you, for others, 2021 could be the year they decide to hire on some employees. If you want to move in this direction, it will be important to figure out what positions you need to fill, what their role would be, how you will approach training, what you plan to pay them, and how you’ll attract the top talent to your business.
Stay on Top of Invoicing
Are you often finding the business strapped for cash and not for a lack of sales? It could be that your current invoicing system, or lack thereof, is causing issues with cash flow. Invoices need to be sent out in a timely manner. Payments need to be received on time. Or else you’re not going to have that steady influx of much-needed cash.
It could be worth your time to look into invoicing software. This can make creating, sending out, and tracking invoices easier and more accurate.
Do You Need to Make Hardware Upgrades?
Moreover, even with proper care and maintenance, eventually, there will come a time where you need to make hardware upgrades – which are things like your computer, printer, copier, and so forth. These upgrades will ensure that you’re able to operate the most current software. From a security standpoint, it will protect your content as new devices offer support.
Find the Passion in Your Business
In conclusion, the final tip is a reminder or a re-discovery. That’s to connect with what got you passionate about your business in the first place. Why did you choose this route, why did you choose this industry, what did you set out to accomplish? By tapping back into your passion for your business, it can reinvigorate you and help power you forward.
Prepare for 2021 to Be Your Best Year Yet
Follow these tips and take the time to plan out the upcoming year. In short, you’ll be sure to lay the groundwork necessary. So you can make 2021 your best most successful year yet.
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