How To Do An Annual Review of Your Business + Prep For Success In The Coming Year
Confession alert: I’ve never done an annual review of my business. I’ve meant to start for years, but then the holidays and the New Year celebrations come, and, well, I get bogged down.
When I don’t do it from the start, it's March, and I’ve missed the boat. Again.
But now that I own both a photography business AND a studio, I’ve decided I want to be more consistent. I need to be more consistent.
If I begin planning the year better for both businesses, I have nothing to lose and a lot to gain. Up-front, beginning-of-the-new-year planning will help me organize all the dates and all the things way in advance.
I don’t know about you, but it is SO hard for me to stay on top of things before I’m in the thick of them. That’s why, this year, I am doing an annual review. And I believe sharing this process with you will help me finally do it, too.
Writing it down helps hold me accountable.
I wrote it. You read it. Now I just have to do it. That’s how accountability works.
But that’s not the only reason I’m sharing this with you.
I’d love for you to do it with me! If you want to do an annual review (and also haven’t successfully done one before), I’ve dug into the best resources I could find. Feel free to follow the process I plan to use.
Here’s how we’re going to kick ass this year.
First of all – What the heck is an annual review?
An annual review is like an in-depth examination of your business over the past year(s) that helps you uncover the insights you need to meet new goals in the year ahead.
Business trends are cyclical - and your annual review will open your eyes to the cycles within your own business over the last year(s). Then, you build your plan for the next year around these proven cycles.
Using the evidence you find, you develop a plan where you:
Launch new products or services during slow seasons.
Know ahead of time when you need/can take time off.
Go into the new year with your plan wholly mapped out (before life feels chaotic.)
Then, when the low part of the cycle hits, we DON’T fall back on a famine mindset and become frantic about the end of everything we love. We expected this. Our business isn’t tanking before our eyes – we’re simply in our already anticipated slower season.
Thanks to our annual review, we knew this was coming, and, best of all, we ADAPTED and PLANNED AHEAD.
Over the years, I’ve seen multiple people share how they perform annual reviews and explain what a profound difference it has on their business.
Still, it seemed too complicated for me.
Then I heard Bonnie Christine, host of Professional Creative Podcast, share her process in a way I could finally understand. For the first time, I thought, “Ohhhhh, that's DOABLE.”
Inspired by her guidance, I’ve developed a plan that will help me gain the insights that I need. You may find this works for you, too.
How To Perform An Annual Review Of The Past Year
1. Put “Annual Review” on the calendar.
The entire review process may take a day or even a few days.
2. Start with reflection.
Spend the first 60-90 minutes away from everything – your phone, your computer – and deep dive into reflecting on your business.
Journal about the positives of the past year. What worked? What significant milestones did you have? What were the best moments? What do you want to keep in the new year?
Then, look at the low points. What didn't work? Why do you think it didn’t? What changes might you make for the next year to avoid repeating that mistake?
3. Dig into the numbers.
It’s time to get into the nitty gritty by reviewing all account statements. What were your revenue goals? What did you actually make? Where did you make the majority of your money? What do you want to pay yourself in the next year? What will your goals be?
As this will be my first time, I plan to look at all the data I can from the past 4-5 years. For each month of each year, I’m going to review:
the number of photoshoots
the amount of revenue brought in
the number of inquiries received
the number of newsletter opt-ins
Etc, etc. – allll the things
I’m excited to look for the trends and see what they tell me.
4. Consider your current team.
Look at your current team to ensure they’re adding VALUE to your business. Who are your contractors, employees, etc.? How are things going with each of them – regarding money spent and money earned? What is going well? Where do you need more support?
5. Visualize your goal team.
An annual review is a great time to take stock of what YOU are doing that you no longer want to do or that you could allow someone to take off your plate – especially if you still consider yourself a solopreneur.
Create a list of 10 things you could outsource. If that feels like too much, start with 3-5 and look for opportunities to add to this list. Start with easy-to-hand-off things like housekeeping or laundry.
When you’re ready, work up to the things you may have a harder time letting go – things like copywriting of your content or virtual assistance on all the things. Imagine what your dream team would look like. What would it look like? What roles would they fill?
How To Create an Annual Plan For The Year Ahead
1. Dream up your vision for the coming year.
Think about where you would like to be at this time next year – in life and business. What are your hopes and dreams for your business in the coming year? What about your life? What changes must you make to have all your goals come together?
2. Get a big calendar.
I like to use a huge acrylic calendar to keep track of dates throughout the year (snag mine here - I did a Monday start and used the vertical one since it is broken up by quarters). I like that I don’t have to flip pages and that you can wipe off any change that comes up. You don’t have to do that. I’m sure that paper works just fine (or you can get a budget friendly one here), but our goal is to create a sort of “Year At A Glance.”
3. Start with life.
I like how Bonnie Christine puts it: “Life goes in first – it’s the reason we're here.” I love that. It helps me start with my priorities – the people I love, the things that matter to me, and any immovable dates on the calendar.
I know what will happen if I don’t start with those things (I suspect Bonnie Christine does, too.) They’ll get pushed out by all the business stuff, and that’s not good for my energy at work OR my overall mental health. That’s a fast track to burnout.
So, the first thing we’ll add to our calendar is birthdays, holidays, celebrations, and vacations. If you have kids, you might add school breaks and fun traditions. For certain hobbies you have, you might add classes, events, or gatherings.
4. Add in business.
Now that we’ve added our priorities, we work backward and fill in any holes. Look for the places where you launch – and where you may need to rest.
In this step, we will add all the revenue generators that will help us reach our business goals. Your money makers might be Black Friday sales, Mother's Day events, or specific Christmas markets. Whatever yours are, let’s pick 3-4 to do in the next year that will help us reach our revenue goals.
Beyond that, we’ll leave plenty of extra space to complete those big projects. For example, I may need six weeks of launch planning if I want to launch something. So, I’m going to work backward and create a map so that I can see the entire launch as a whole.
In my experience, it’s always better to allot too much time to a project than too little! However much time you realistically think something will take, double it.
5. Include rewards.
Preplanning rewards on the calendar is another hot tip from Bonnie Christine that I love. After every big deadline, we’re going to plan to give ourselves a little reward. I love a special dinner date or finally splurging on that item I kept saying I didn’t need, but it should be whatever will motivate you to keep moving forward and it doesn’t have to involve spending. You want that dangling carrot!
6. Continue to track.
Throughout the year, add notes to your calendar when you:
hit burnout
feel stretched thin
feel energized
take longer than planned
Our energy levels shift and cycle throughout the seasons and the year. By doing this, you’ll be able to see your year-after-year energy cycles at a glance and begin to build your calendar around busy seasons and low-energy seasons in ADVANCE.
Let’s hold each other accountable.
As I said – if you’re doing this for the first time, we’re in it together! One thing I am actively trying to avoid is allowing my perfectionist tendencies to take over.
It's SO easy to get caught up in the details and make sure you’re doing everything RIGHT – that you end up not doing anything at all.
This first time, let's take it easy on ourselves. Let’s fill in the big picture items and, as time permits, fill in the more minor stuff. What’s most important isn’t doing it perfectly; it’s simply doing it.
We will get better at this the more we do it.
Another great piece of advice I garnered from Bonnie Christine was this: Your vision for the year ahead should feel like a bit of a stretch – risky but doable. Start with your intended destination in mind – the path will become clear if you just keep moving forward.
One last thing – is better branding part of your plan for the coming year?
I’d love to help you meet your goals of booking more dream clients and increasing revenue – with unapologetic, fully expressed photos that fully represent your brand.
If you’re in (or will be in) the Austin, Texas, area, check out my story-driven, results-getting experience, and message me when you're ready to chat.