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Our top tips for the new year
27 December 2023

As the year ends and a new one begins it’s a great time for a fresh start. It’s the perfect opportunity to reassess your financial needs and come up with some new business goals.

Here are some of our top tips to get ahead this new year:

 

Review and update your business plan:

 

A thorough financial strategy is the foundation of achieving financial independence. A well-defined structured financial plan acts as a roadmap, guiding your financial path towards accomplishing your objectives. It’s essential for preserving financial health and guaranteeing that you’re on track to meet your objectives.

No matter how long you have been in business it is worth revisiting and taking some time to review your business plan and make any necessary updates to reflect changes in the market, your business goals, and any new opportunities or challenges you may have faced in the past year.

 

Set financial goals:

 

Now is the perfect time to reflect on the financial performance of the past year. Take a close look at your finances and identify any areas where you can save money or increase revenue. You can then use this information to set realistic and measurable financial goals for the upcoming year.

 

Monitor cash flow:

 

A clear view of cash flow helps to inform better business decisions. Without a strong cashflow even the most profitable businesses will fail.

To make sure you’ve got enough cashflow to keep your business running, follow these steps:

  • Stay on top of bookkeeping. It’s the single best way to understand all the financial transactions in your business, and you can’t do the rest of the steps without it.
  • Analyse your cashflow. Take the information from your cashflow statements and use it to understand how money is moving through your business.
  • Cut overspending to increase cashflow.
  • Speed up your accounts receivable (i.e. money owed to you). The faster you get money in your pocket, the more cash you’ll have. 

Update your budget:

 

Take time now to look back at the whole of the previous year. You can compare month on month, quarterly or yearly figures for cash flow statements, balance sheets and a profit and loss breakdown. You can then use this data to get an idea about patterns and trends that your business is following so far. Then use your up-to-date financial information to set a realistic new budget. Allow yourself enough spend to grow – cutting costs too far will stifle growth – but be strict, keep track of your spend every month and stick to your budget. It is also important to ensure that your budget reflects current economic conditions and industry trends.

 

Revaluate pricing strategies:

 

Now it a great time to look at your pricing strategies and check they align with market conditions and your cost structure. You can then consider whether adjustments are needed to maintain competitiveness and profitability.

 

Assess and manage risk:

 

Identifying potential risks to your business both internally and externally is vital for any business. It is important to develop a risk management plan to mitigate and respond to any risks effectively.

 

Build or update your emergency fund:

 

We highly recommend having an emergency fund. You never know when you will encounter unanticipated costs or emergencies. Having a reserve acts like a safety net and will ensure that you’re well prepared to handle unexpected financial challenges whilst providing financial stability during uncertain times.

If this is something you think you need some help with, we have the perfect programme. We developed our “Path to Success” programme as we wanted to empower business owners in understanding and owning their financials. We want to help and show business owners that by having accurate and up to date turnover and profit figures they can then grow, set targets, plan for investment and determine breakeven points.

If you would like some more information, please get in touch.

Overall, the key to preparing your business for the new year is to take a strategic and proactive approach and to focus on continuous improvement and growth. By regularly reviewing and updating your business plan, setting new goals and staying on top of industry trends, you can position your business for success in the new year.