It’s the New Year, so it is time to start planning for 2017. Your business has to be financially prepared for the coming year by putting the right strategies in place. The following are a few tips will keep the businesses up and running for the long run.
Revisit your business plan: This is important because you need to have a guide to make business decisions as per the current market situation. However, ensure that your originals goals and values are still relevant, intact, or need to be revised.
Create a Financial Model to Focus on Profitability: Small businesses should avoid the mistake of being in a situation of not being able to generate enough revenue to pay their vendors, independent contractors, or employees. It is important to find the help of an experience accountant to create a financial ‘road map’. Considering a good accounting software in your business process will help as well. You can more easily track your expenses, analyze your marketing and sales trends, forecast your financial goals, and track results from the top down. These simple steps can help in boosting your profits.
Evaluate your Business Processes: This is very important, as it will give you an insight into the areas that are running efficiently, and the areas that require your attention. For instance, if you are using spreadsheets to store your customer database, you may need to consider upgrading your system. Similarly, consider moving towards paperless office by sending electronic invoices and receiving electronic payments without delay.
Review your Insurance Policies: Insurance policies that every small business owner should possess include personal liability, property, product liability, vehicle, workers’ comp, etc. Reviewing these policies can save a lot of money. You can make sure that you are properly covered. It can also give you the opportunity to drop any coverage you may no longer need.
Start Monitoring Your Monthly Expenses: Keep track of your monthly expenses. There are many software options that help you track every purchase you make. This can be especially helpful if you need to track travel expenses. Having in place a smart budget will give you an idea where you are overspending or if you need to set some more aggressive savings goals.
By staying organized and sticking to your plan, you should have no problem reaching your 2017 small business goals. When your goals are clear, your plans aligned as per your financial model, and you keep up with your business plan, you should have no problem being successful in 2017.