Finish Strong: 8 Things Small Business Owners Should Focus on in the Fourth Quarter

The fourth quarter—October through December—is more than the final stretch of the calendar year. For small business owners, it is an opportunity to finish strong, evaluate what worked, address what didn’t, and prepare for a successful new year.

It can also be one of the busiest times of year, making it easy to focus only on day-to-day operations. Instead, set aside time to work on your business as well as in it. Here are eight areas worth your attention before December 31.

1. Review Your Year-to-Date Financials

Start with the numbers. Review your profit-and-loss statement, balance sheet, cash flow, sales, expenses, and outstanding accounts receivable.

Compare your actual results with the goals or budget you established at the beginning of the year. Where did you outperform expectations? Where did you fall short?

Most importantly, don't just look at revenue. Revenue tells you what you sold; profitability tells you what you kept.

2. Meet With Your Tax Professional

Don't wait until tax season to start thinking about taxes. A fourth-quarter conversation with your accountant or tax professional gives you time to identify potential issues and discuss decisions that may need to be made before year-end.

Ask about estimated payments, deductible expenses, equipment purchases, retirement contributions, recordkeeping, and anything else that could affect your particular business.

3. Evaluate Your Best Customers

Not all customers contribute equally to your business. Look at who purchased from you this year and identify your most profitable and loyal customer segments.

Ask yourself: Who are my best customers, what do they have in common, and how can I attract more people like them?

This is also a great time to reconnect with past customers and thank your current ones.

4. Assess Your Marketing

Review the marketing activities you tried this year. Which channels actually generated inquiries, customers, or sales?

Consider your website, email marketing, social media, networking, advertising, events, referrals, and other activities. Instead of continuing something simply because you've always done it, decide what you should keep, stop, improve, or try next year.

5. Look at Your Products and Services

Which products or services generated the most revenue? More importantly, which generated the greatest profit?

You may discover that a popular offering isn't particularly profitable—or that an overlooked service has significant growth potential. Consider pricing, costs, demand, and the amount of time required to deliver each offering.

6. Check Your Operations

Think about where your business lost time or experienced frustration this year.

What processes were repetitive? Where did mistakes occur? What tasks could be automated, delegated, documented, or eliminated?

Even small operational improvements can save significant time over the course of a year.

7. Set Next Year's Goals

Don't wait until January to decide what you want from the new year.

Choose a few specific, measurable goals. Instead of saying, "I want to increase sales," determine how much you want sales to increase and what actions will help you get there.

Then break annual goals into quarterly and monthly milestones. A goal becomes much more useful when it has a number, a deadline, and an action plan.

8. Make Your First-Quarter Plan Now

Finally, determine what needs to happen during January, February, and March. Identify your major priorities, marketing campaigns, financial targets, important deadlines, and key projects.

Starting January with a plan gives you an immediate advantage.

Finish the Year With Intention

The fourth quarter isn't just about closing out the books. It's your opportunity to learn from the past year and make informed decisions about the next one.

Set aside a few hours before year-end to review your money, customers, marketing, offerings, operations, and goals. You don't need to fix everything at once. Identify what worked, determine what needs to change, and choose the few priorities that will have the greatest impact.

A strong new year doesn't start on January 1. It starts with the decisions you make before this year ends.