The following 10 “big-picture” areas are worth reviewing as you move into 2009.

1. Establish a Formal Employee-review Process

1. Review and summarize dates of hire, raises, performance evaluations, comments and promotions.
2. Do a job analysis on each function in your company to see whether job descriptions are up to date. Without an accurate job analysis and description, performance evaluations are impossible.
3. Have the line managers meet with employees to get their input about the specific skills and procedures necessary to perform all the job functions required by the corporate strategy. Assure employees that their input is an important part of the employee-review process.

2. Establish a Capital Asset Replacement Budget For 2009 and Beyond

1. Take pictures of all capital equipment and, where possible, record all serial numbers.
2. Create a list indicating the type, model, and model year of the equipment based on the photos taken.
3. Use the list to determine resale value.
4. Identify assets to be replaced and assign a planned replacement date, estimated cost, financing requirements, a building or installation time-line, and any training period and associated costs.
5. Extrapolate any impact on cash flow requirements, profit and corporate tax position.

3. Start an Operational Budget

1. Review existing database capabilities to determine their adequacy for your budgeting processes. If not, you may need to prepare a spreadsheet or purchase customized budget software.
2. Review actual figures to date to “get a feel” for fixed costs such as leases, and variable costs such as production costs move with sales.
3. Consider using a zero-based budgeting method instead of just looking at the status quo and adding two or three percent to last year's figures. Zero-based budgeting requires a fresh analysis of the needs and costs of each function within the strategic plan. Implementation of ZBB is time consuming but much more precise than traditional budgeting.
4. Commit to a continuous budget plan that seeks to update the budget systematically once the current budget term is over. For many owner- managers, quarterly or semi-annual budget cycles may be sufficient to control expenditures.
5. Compare actual results with budgetary estimates to find problem areas; assign responsibility and encourages change.

4. Manage Your Cash Flow

1. Review accounts receivable daily to identify clients exceeding your 30-day payment terms. Remember the rule of thumb: the longer an account goes unpaid, the less likely it will be collected.
2. Telephone clients to ensure they are satisfied with your product or service and, if so, reaffirm the need for timely payment.
3. Send statements by mail or e-mail with interest added for overdue accounts on a regular basis.
4. Consider reducing credit levels for delinquent clients.
5. Review accounts payable daily.
6. Identify accounts that must be paid in 30 days and those allowing discounts for early payment.
7. Match cash inflows with anticipated cash outflows.
8. Consider whether paying on a fixed schedule such as the 15th and/or 30th of the month would improve cash flow.

5. Integrate Personal and Corporate Tax Planning

1. Meet with your chartered accountant early in the year to discuss potential corporate profit and the impact that draws, salaries, and bonuses could have on both the fiscal and calendar yearend.
2. Review your profit and loss and other corporate financial statements at least monthly to uncover, any issues that need to be discussed with your accountant.
3. Provide your chartered accountant with corporate financial data on a monthly basis to aid these discussions.
4. Review actual performance results constantly as the year progresses to make yourself aware that expectations may have to change and how these changes may impact projected income splitting, timing of capital asset purchases, and cash flow needs to pay corporate taxes, additional salaries, bonuses, and dividends.

6. Consider an Energy Audit

1. Hire a consultant to review your current energy use.
2. Use the consultant's report to develop a three-to-five-year plan to decrease energy consumption.
3. Tie the energy audit to capital asset replacement to save funds in the future.

7. Review Insurance Policies

1. Ask your insurance agent to summarize your policies by type, policy number, coverage, deductibles and premium.
2. Make sure the policies adequately cover capital assets, medical requirements, third-party liability, theft, embezzlement, fire, flood, and natural disasters, as well as employee operation of company vehicles.
3. Review bank loans and lease agreements to ensure covenants for insurance coverage are being met. Meet with your insurance advisor to discuss any necessary changes.

8. Pay Yourself First

1. Calculate the amount of personal income you require to live comfortably.
2. Review the remuneration of others in your position by researching trade magazines, employment placement agencies, or by going online.
3. Once you have established a reasonable package for someone in your position determine whether the current price of your product or service supports a fair return for the effort, time and risk you assume as owner/manager.
4. Discuss with your accountant any possible changes in pricing, production costs, staffing, business model or corporate structure that would produce the results required for greater personal remuneration.
5. Discuss with your accountant whether any changes could be made to your compensation package itself that could increase your take-home.

9. Formalize Your Marketing and Selling Strategies

1. Hire a marketing consultant on a per diem basis to review your marketing and sales strategies.
2. Review the track record of product lines or services and consider whether there will be a market for them two or three years down the road.
3. Analyze your customer base to determine whether their current needs are being met and whether they are the customers you will need in the future.
4. Review your advertising strategy. Should you increase the advertising budget and, if so, where: Internet, radio, television, billboard, sponsoring charitable events? The possibilities are endless.
5. Examine your sales department to determine staffing needs, sales goals, and remuneration packages.

10. Review Your Job Description

1. Do a job analysis on yourself. Don't wear too many hats.
2. Write out the tasks currently performed.
3. Limit and formalize your own responsibilities.
4. Offload those that belong with the shop supervisor, office management or others and formally assign the responsibility.
5. List family events such as holidays, birthdays, anniversaries or the kids' school pageants for the coming year and commit to attending.
6. List critical work times when your presence is mandatory. Delegate when possible.
7. Meet all your commitments.

To the Future

Over the years your business has grown and the personal and business demands on your time have also changed. In the early days, the time taken performing tasks probably reduced the time that should have been spent thinking problems through and meeting both your personal needs and those of your family. Yes, the reward for planning, execution and completion of even one of your many tasks was the feeling of accomplishment and finality. But, as more and more tasks are completed, your productivity and satisfaction will come more from envisioning, thinking, planning and monitoring.