2020 is arriving all too soon, and new business goals come with it. You want goals that align with your values in the short-term while preparing for the first sixth months of the calendar year.
DeepSky wants to help you avoid bad financial advice like lowering prices and reducing the value of your products or services. When you run a business, you often are operated between fifteen to twenty percent at profit. We want to ensure that you can earn the highest profit possible and prepare for the short term. Use these tips when you are running a business or optimizing personal finances.
1. Determine Your Financial Priorities
The first step of setting financial goals is knowing what is important to help your business grow within the first six months. Implement your mission statement and make it relevant for the new year. Such aspects can include knowing what investments you want to make in equipment and technology if you want to outsource talent or hire in-house.
Do you want to hire more salespeople? Innovate a product? Research market demands? Knowing how you want to allocate funds will help you make the first step. A good CFO will help you and explain the best strategies. The members of our Financial WingmanTM program will represent one such example of experts who can help.
2. Identify Your Employee and Business Needs
Once you have set priorities, then you can figure out what employees need to conduct their job and the expenses that come with the operation. You can decide if it benefits you to own or rent a parking lot, or to offer discounts on ride-sharing. If employees value coffee, you can decide if investing in a Keurig is worth the short-term expense.
Calculate the cost of living for everyone, especially in expensive cities. Decide if you want people to come to the office or work remotely. That helps set your budget, as well as determining a salary that will recruit talent while not breaking your bank. If you hire college undergraduates, see if helping with student loans will assist.
3. Track Your Company Spending Habits
This is especially important for companies that issue credit cards, technology, or vehicles for employees. You want to ensure that no one is inadvertently increasing the company costs. In addition, a good business invests enough money in its employees and facility to increase morale and productivity.
Figure out where you can reduce redundancies in office supplies or technology. See if you can save money by switching brands of coffee. Find out where you can use coupons on certain deals or tax deductions.
4. Build Your Business Emergency Fund
Everyone needs an amount that will help them during a rainy day, ideally. Businesses need to maintain steady cash flow or they will go under and have to close shop. Factors such as a slow sales period, late invoice payments or natural disasters can cause hindrances that reduce your revenues. If you run out of money, then your business is sunk.
A business emergency fund can be a bank account whose funds are used to cover periods of low revenues or high costs. If you live in an area prone to hurricanes, for example, you can use the money to pay expenses when the office or workplace is shut down for safety reasons. Or if you get a notice about a new technology making your current line obsolete, you have money to tide the business and minimize layoffs of talent.
5. Leverage Your Business Credit
No one wants to amass needless credit card debt or loan. Even so, there is a benefit to using a business credit card and paying off the expenses on it. You can receive cash back, travel miles, or other rewards depending on the card that you choose. In the case of employees who need to travel, you can reduce the cost of airline tickets and gas.
Building credit means that you build your ability to borrow, whether to increase your assets or to invest in a new property. A business that has good credit can buy a new building, for example, to increase its facilities or rent out to other places for steady cash flows. Pay your bills on time, reduce the interest, and you will appear strong.
Reach Your Goal With DeepSky’s Help
DeepSky wants to ensure that you receive the best accounting and financial services at affordable prices. We help you plan for the short and the long term with savings for your goals and strategies to improve your business.
Contact us today to find your Financial Wingman. DeepSky will help you find the best financial plans for every one of your accounts.