Whether you're new to business or a seasoned entrepreneur, setting goals for yourself and your business at the beginning of the year can give your team direction and a sense of purpose, which you can use to motivate them throughout the year. You can increase it. Improving customer engagement, increasing sales, and fine-tuning operational systems are all goals worth setting and will likely have a positive impact on your company. However, some other financially focused goals can have a similar impact.
According to the experts at Kiplinger Advisor Collective, implementing one or more of the following seven goals will help your business function at its best and be prepared for any hurdles it may face. Masu. Whether you set these goals at the beginning of the new year or a few months later, your business can benefit by improving your financial preparedness.
Prepare for a general financial crisis
“Having started and run several businesses, I am always amazed at how unprepared business owners are for common economic crises. We recommend conducting a “Financial Fire Drill.” This is a concept that we have standardized for each individual customer to ensure they have a contingency plan. Thorough planning for events, including the loss of a major customer, the death or disability of a key stakeholder, the economic impact of extreme changes in regulation or other shocks, will help you think through them when they occur. It's not what I want to do. Routinely performing these exercises will go a long way in clarifying exposures and providing financial stability for investors. ” — H. Adam Holt, asset map
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Implementing a robust cash flow management system
“One of the financial strategies that businesses should implement is a robust cash flow management system. Understanding how revenue flows into and out of the business is critical. How is the business growing? You can see which products and services are performing well or need improvements or marketing changes.It can also help you with cost-cutting measures. Many of us experience business creep as well as lifestyle creep, as we add systems and expenses that may not add value and eat into our profits.” — Jason Vitug, Slutty
Coordination with tax accountant
“I think more companies should collaborate with tax accountants and actively work on tax planning, such as introducing retirement plans or changing existing plans. Not only does it help you build wealth in the industry, it also saves you money on taxes and helps with employee retention.” — margherita chen, Blue ocean global wealth
Kiplinger Advisor Collective is the premier standards-based professional organization for personal finance advisors, managers, and executives. Learn more >
Hire freelancers to support your weaknesses
“Identify the weaknesses in your business. Then hire freelance contractors who specialize in those weaknesses. Have contractors fill in the gaps until the weaknesses are addressed.” — Sean Plummer, pension expert
Utilize executive bonus plans and sales agreements
“Companies are often left vulnerable in terms of talent and unexpected turnover. Companies use permanent life insurance in the form of executive bonus plans to retain key personnel, You may also consider using buy-sell agreements to help you efficiently transfer your business in the event of your death. Talent loss and undesirable partners can lead to less desirable outcomes.” Dr. Preston D. Cherry, simultaneous financial planning
Build up an emergency fund
“One of the key financial strategies businesses should consider this year is to introduce an emergency fund, if you don't already have one. This will help sustain your business under any circumstances. It will at least provide the business with a financial cushion to carry out important projects while maintaining employee retention and business relationships.” Justin Donald, lifestyle investor
Review (and possibly restructure) your debt and pricing strategy
“I think small and medium-sized businesses should consider a comprehensive review and possible restructuring of their debt and pricing strategies in light of changes in interest rates for the remainder of this year. You should consider options to avoid these fluctuations, which can affect your business and various aspects of your financial situation.” Ramona Ortega, my money, my future
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The information provided here is not investment, tax, or financial advice. You should consult a qualified professional for advice regarding your specific situation.
