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Key Takeaways
- A long-standing annual ritual helps a small business owner reflect on the past year, clarify priorities and prepare thoughtfully for what’s ahead.
- Through deliberate planning, personal accountability and meaningful connections, the process brings perspective, stability, and renewed focus without relying on rigid systems.
I’ve been running a small business for more than two decades. Over that time, I’ve developed some routines. One routine happens each year at this time. During December, I’m looking ahead and thinking of the next year. I make my plans. I make a few resolutions. I check in with those important. The actual details change each year, but the process is the same.
Here’s what I do every year, at the end of each year.
Employee bonuses
Before the year is over, I try to make sure that all of my employees and contractors who impact my business have been evaluated, connected and receive my appreciation. I send cash bonuses to each of them. It’s a discretionary bonus that I come up with every year based on profits and I’m careful to make sure that the bonus is never less than it was the previous year, unless profits are so bad that I couldn’t afford to make the payment (which thankfully hasn’t ever happened). Even in 2025, I’m doing these bonuses by manual check, which I slip into a holiday card that includes a personal note and is deliberately delivered old school in the mail. For a few remote employees, I do the bonuses electronically, but still send the card.
Related: If You Haven’t Already Done These 7 Things to Prepare Your Business for the Holiday Season, You’re Putting Your Business Behind the 8-Ball
Employee evaluations
Because my business is entirely virtual and many of my people are located throughout the world, I’ve stopped doing holiday parties. However, I make it a point to check in before the year is over with all employees with an informal evaluation just to make sure they’re getting good (and constructive) feedback and they know where they stand going into the next year. I take this time also to establish a few goals for the upcoming calendar year (i.e., chargeability, revenue generation, client service ratings, education certificates, etc.) with each person so they are clear how they’ll be evaluated in the coming year and can benchmark themselves.
Gifts
Right after Thanksgiving, I draw up a list of people whom I want to thank for doing business with me during the year. They are clients, prospective clients, suppliers, partners and people in the media. I usually send chocolates from Godiva or a gift basket, and I keep the budget to about $35 per person. There are usually about 50 people on this list, so you can do the math. There’s also time involved by my assistant to coordinate all the ordering. Which means there’s a cost. But it’s worth it. I start with last year’s list and modify it. I get a lot of joy in doing this. And I regularly hear back from people saying thank you, and I know it’s appreciated. It’s not much, but it’s a genuine gesture and reminds me of the people who are really important for my business.
Forecast
For a business as small as mine, I don’t do a budget. But I do prepare a forecast. This is an online spreadsheet and for my eyes only. It takes me a few days to work on each year at this time. I revisit compensation and other costs to make sure my annual overhead reflects reality. I determine specific quantifiable goals for my business — chargeable hours, client project completions, new media projects and consulting clients, new client revenue, etc. — but I don’t make them excessive or out of reach. My spreadsheet takes into account a reasonable estimate of the work I can expect in the coming year and reflects both direct and administrative costs associated with that work, along with a projected net profit for the year. This way, I have my numbers clear heading into the new year and I know what I have to achieve.
Resolutions
New Year’s resolutions are corny. But they’re useful. At this time of year, I make resolutions. For example, in this coming year, I’m resolving to meet certain of my remote employees in person once a quarter, even if that means me flying out to see them. I’m also resolving to lean deeper into AI in 2026 by assessing the capabilities I can leverage in my existing software (accounting, CRM, office) and investing in training for my people to use it. I’m also going to lean heavily into an AI Assistant to assist me in all things I do in my business — right now it’s ChatGPT, but Grok is coming in as a strong contender too.
Also, I’m committing to taking on a few projects that are out of my comfort zone because — even though I’m risking profitability or even my reputation — it’s the only way to grow, and it keeps one’s mind very active with new challenges. I try to keep these resolutions to a small number so that they’re achievable.
Related: 7 Things I’ve Learned In 7 Years of Entrepreneurship
Personal goals
Besides my business resolutions, I do make a few personal goals for myself each year. That usually revolves around maintaining a certain weight, exercising regularly, playing better squash (don’t ask!) visiting a new country (my wife and I have been Airbnb-ing and working remotely three to four weeks in January in a different country each year over the past few years and love it) or taking a family vacation or taking a course in something I like. These goals not only give me something to look forward to but also keep my head balanced between fun stuff and work stuff.
Document
The most important thing about forecasting, goal setting, and creating resolutions is accountability. None of this matters if you’re not holding yourself accountable to your commitments. To that end, I create a task in my calendar application to “check in” on all of these things at the end of each quarter. I’ve come to look forward to doing this when the task comes up on my to-do list for the day. It’s a way to remind me of all that I’ve planned to do in the current year and gives me a reset as to where things stand.
By the end of the year, it’s interesting to see just how much I accomplished and how realistic all of my goals were. I keep these tasks in my history because it’s also fun to look back at what was on my mind five or ten years ago. You’d be surprised at how trivial all of those “problems” that were so important back then are today. It gives me perspective.
This is what I do every year. This is my process. It eases my mind. It gives me clarity. It helps me look forward. It helps me appreciate what’s in the past. It helps me prepare for the future. If you’re a business owner like I am, I strongly suggest doing something similar. It works.
Key Takeaways
- A long-standing annual ritual helps a small business owner reflect on the past year, clarify priorities and prepare thoughtfully for what’s ahead.
- Through deliberate planning, personal accountability and meaningful connections, the process brings perspective, stability, and renewed focus without relying on rigid systems.
I’ve been running a small business for more than two decades. Over that time, I’ve developed some routines. One routine happens each year at this time. During December, I’m looking ahead and thinking of the next year. I make my plans. I make a few resolutions. I check in with those important. The actual details change each year, but the process is the same.
Here’s what I do every year, at the end of each year.