Year-end is a natural time for reflection. With the recent election and the "fiscal cliff" constantly in the news, it's easy to get distracted. It helps to establish some guidelines about what is still important and what can be delayed until broader fiscal issues are resolved.
The number one issue for any business is revenue - how to generate it and how to grow it. The overall health of the general economy drives most revenues, especially business to business and consumer sales.
Until people believe things are getting better, spending will remain static. Businesses that sell non-essential, discretionary items will continue to struggle. Those that have established a strong value purchase position will survive and prosper.
Regardless of whatever compromises are reached in Washington, it is important to remember that taxes alone do not determine the success of a small business. It may affect the owner's tax bill, but a customer is not aware of an owner's personal tax situation. Their purchase is based on how a product satisfies their needs and if the price represents a reasonable value.
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Businesses crave certainty in the business climate and their expenses. Higher taxes means there is less cash available for investment so expect job and income growth to be sluggish. The true cost impact of expanded health care on businesses is unknown. Both issues are beyond an owner's control.
Focus on things you can control for example, growing top line revenue. Reinforce your value proposition. Consider adding new products or services. Offer extended payment terms, bundled purchase options, or extended warranties.
Many SCORE mentors are or were small business owners and have been through these situations.
If you need help sorting through what's important and what isn't, and establishing a plan for 2013, contact SCORE or a qualified business consultant.
Ralph Hershberger is president of SCORE Southern Arizona, a nonprofit group that offers free small-business counseling and mentoring by appointment at several locations. For more information, go to southernarizona.score.org, send email to mentoring@scoresouthernaz.org or call 505-3636.