Making New Year’s resolutions for your business can be inspiring and rejuvenating. But balancing big-picture goals with day-to-day tasks is no easy feat. If you’re having trouble reaching – or even setting – your objectives, we’re here to help.
Here are a few resources you can leverage to reach your goals:
1. Track income and expenses.
Seeing how your money is moving is one of the best first steps you can take when it comes to healthier financial management. You can do this yourself with a detailed spreadsheet, or you can use an accounting software program.
To get started, list all of your expenses – rent, inventory, utilities, payroll, etc. Then, reconcile this list against your bank account. Add line items for additional expenditures. You may be surprised to see the other places your money is going – and how much of it is spent on things that aren’t adding to your company’s bottom line.
After you get a ballpark idea of how much you’re spending per month, look at what’s coming in by quarter. Maybe your costs exceed your income in Q1, and Q2 and Q3 are the times you out-earn what you spend. Instead of being concerned about the slower months, perhaps you could use that time to prepare for the busier times ahead. Noting these trends could help you budget for the leaner times and capitalize on the stronger ones.
2. Simplify cash flow and payroll.
Even though you’re just one person, you’re often tasked with handling several jobs – many of which take place in the back office. If you’re not able to hire new employees, but looking for ways to streamline accounts receivable, control available cash and working capital, simplify supplier and tax payments, stay on top of payroll processing, and access human resources support. There are products and services that can step in and give you some much-needed manpower – ahem, platform power. We recommend Clover, an all-in-one provider that’s designed to help you win clients, build loyalty, create efficiencies and boost security.
3. Prepare for growth opportunities.
As a small business owner, you know that preparing for the unexpected is a necessity. But what’s the best way to keep some extra cash on hand? One way to build up some extra cash is through a savings account or Certificates of Deposit (CDs). These are low-risk, interest-bearing options that’ll make sure your money is working for you (after all, you worked hard to earn it).
While there are different types of savings accounts and CDs, the main idea is that you can access your money any time in a savings account, but you’d pay a penalty for early withdrawal in a CD. Additionally, savings account rates can change over time, but CDs have a fixed rate for a fixed length of time.
But what happens if you want to seize opportunities? How do you prepare for growth and expansion? There are specialized lending opportunities your business can explore. So, when it comes to financial assistance, selecting an SBA Preferred Lender with a dedicated SBA customer experience specialist just makes sense.
4. Make strategic investments.
As you work toward your company’s financial goals, you may be considering new investment and growth opportunities. This could mean putting your funds in trading, bonds or real estate. Or perhaps you’re ready to grow your workforce, expand your footprint or invest in new equipment.
You may be hesitant to make any big changes – or big ticket purchases – because of the financial implications. Keep in mind, though, that you have options that could still provide you with the working capital you need to keep your daily operations running smoothly while also allowing for long-term growth. If you’re budgeting for new expenditures, ask yourself if asset-based lending or equipment financing could be the right fit for your situation.
Ready to put your company’s financial resolutions into action? Consult with a banker today to see how we can help you get started today.
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