While having early morning tea today, I was thinking in terms of the year almost gone by, the hits and misses and what could be done better. I am sharing a review framework both from a business and personal finances point of view which has been helpful to me and people that I know.

Let’s start from a business angle.

• Has the business grown year on year, quarter on quarter?
• Is growth only because of certain set of customers or is it more broad-based?
• Are expenses rising faster than incomes?
• Is capital infusion needed to revive or stabilise the business?
• Are credit cycles becoming longer?
• Is passion still driving you?
• Are you creating the future every moment?
• Are you enjoying your work?
• Do you do the work needed to be done despite not being fond of it at times?
• Can you leave business for a year and still see it growing at growth rates without you?
• Are you living a life of purpose?

You can rate yourself from 1-5. 1 being the least and 5 being the highest. This is best done together with your work group or your spouse for candid feedback.

Let’s come to the personal finance angle.

• Is income rising year on year?
• Are income enhancing skills growing?
• Are major liabilities being reduced systematically?
• Are major assets being planned?
• Any major life transitions you are going through which you are not prepared for?
• Are your taxes being planned prudently?
• Are you having a next level network which can get you there?
• Are portfolios rising in line with the indices?
• Are you adding to key performers or vice versa?
• Are you overall making progress?
• Are there enough reserves to cover for the big-ticket purchases over 24 months?
• Are tax saving investments being looked at timely and at the start of the year?

Similarly like the business exercise this can be an eyeopener. Basis this, goals can be set and then different ways of meeting them are to be devised. This is an early warning system which makes sure we stay nimble as business owners. That said it can be fun if done with the right attitude as this helps us to understand our current reality. This is the time of the year to reflect and to act proactively to make sure things are in place.

Seize the day!

Also read: 5 myths about business planning

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