By Lucas VanDeWoestyne, CPA, CGMA and COO of
Apex CPAs & Consultants

Almost every weekend, I work on my black Cadillac CTS-V (a race inspired version of the CTS; if you are a car buff like me, you’ll appreciate this). Now, I absolutely could just start adding parts. However, what we usually find is that down the road we have to change the parts we originally put in to achieve the results we want. Instead, getting a game plan early, asking the right questions from trusted experts, and focusing on my goals will save me time, money and resources.

Same goes for running a business.

You know the big needle movers: cost of sales or labor or year-over-year growth. Unfortunately, it is tempting for business owners to get pulled under by day-to-day details. After all, it’s easier to reduce the number of paper clips (OK, a bit dramatic, but it makes the point) than it is to figure out if the business is flying straight.

After helping hundreds of business owners move the needle on metrics like top-line and bottom-line growth, tax reduction, market share, margins, debt, and operational productivity, one lesson we’ve learned is that metrics don’t stop with numbers. The “happiness quotient” for a business owner as well as the “team variable” – the depth of collaboration and empowerment felt by the people within the company – elevate a business to champion status.

So, go ahead, reimagine your company beyond the standard P&L. Here are five goals, and the questions to go with them, that every business owner should target in 2018. We call them significant result makers for one reason: They move the needle.

1. Increase profit.

According to a U.S. Bank study, 82 percent of businesses fail because of cash flow problems. Setting up the right budget really comes into play here as does understanding the real meaning behind the numbers and what drives profit.

– What are our profit expectations?
– Am I working on the right tasks to accomplish those expectations?
– Do I have a healthy cash flow?
– How profitable is the business?
– Is the business as profitable as it should be?
– Should I use profits to expand?
– How is my budget set up? Is there a better way?
– When was the last time I reviewed expense line items?

2. Maximize the value of your company.

A lot of energy is wasted on moving the needle incrementally. Sure, a small change might net you a half percent margin, but maybe a strategic acquisition will double your revenues. The first step in maximizing your company’s value is knowing what you have, then building from there.

– Do I know my company’s valuation number?
– What are my company’s valuation drivers?
– Is my company in a position to run without me?
– What do I think the value of my company is?
– What would I like the value to be?

3. Reduce taxes.

When we onboard new clients, we often see they’ve left a lot of money on the table when it comes to taxes. Working with a tax expert makes all the difference. Every year, tax laws change and hidden tax incentives are easy to overlook.

– Am I maximizing tax deductions and credits?
– Do I have a short-term and long-term strategy?
– What has changed about my business this year?
– Do I have an idea of what I’m going to owe at least 6 months prior to the due date?
– Is my tax professional actively involved in the planning process?

4. Unchain from the tactical, everyday minutiae.

Business owners start companies so they can write their own story. Oftentimes, that story gets thwarted by the demands of everyday minutiae, creating more distance between the owner and the life he or she wanted in the first place.

– Does my entire team have a clear understanding of the vision and where they fit in?
– Do I have an actionable strategic plan with clear accountabilities and expectations?
– Do I know the Company’s key success drivers and am I managing to them?
– Do I have the right people on my team and are they doing the right things?
– Am I working “in” the business or “on” it?
– If I wasn’t here for a month, would my operations run smoothly?

5. Pursue personal goals.

Many very smart, hard-working business owners look shell-shocked when we ask what they personally want out of the business. Psssst . . . little secret here: If you are looking for the light at the end of the tunnel when it comes to your company, it’s probably not supporting your personal goals.

Let’s say, for example, you own a plumbing company. Considering goals in between leaky faucets and kitchen remodels won’t work. Instead, schedule time to think strategically. Then, tee up a trusted partner who can tell you if you are focusing on the right things.

– Am I enjoying life?
– What do I personally want to accomplish and by when?
– Are my goals written down and specific?
– Am I investing enough time to achieve my goals?
– Am I serving my family and being the best I can be?
– Is my business serving me or is it the other way around?
– Who knows me well enough to give feedback on how the business supports my personal goals?

From a broader viewpoint, business trends like a growing millennial workforce, the rise of remote workers and e-commerce, and greater customer engagement also will spur business owners to carefully consider what defines business success, personal happiness and the key drivers to reaching goals.

In 2018, businesses that win will think more strategically in order to move the needle. What will be your focus?

Based in St. Charles, Ill., Apex CPAs & Consultants, Inc. is an accounting firm that leads with innovative culture and specialized technical expertise to transform businesses serious about growth. Call (630) 584-4555 for more information.