If you’re like me, you’re probably still recovering from the New Year celebration. But now that we have all recovered from our hangovers and have finally taken down our holiday decorations, let’s get down to business! The start of the year is the perfect time to take an honest look at your finances and figure out if they need a tune-up or if you need a complete overhaul. It’s also a great opportunity to make some changes that will help you grow your business in 2023. As any financial adviser would tell you: “Your finances should be as fit as possible so that they can support your future plans.” So what does it mean for your finances to be FIT? Below are some tips on how to get started:
Financial foundations help create successful businesses
Financial foundations are the building blocks of your business. They’re the foundation on which your business is built, and they support it both literally and figuratively.
If you have a solid financial foundation in place, then you can confidently build on top of that foundation. You can create more opportunities for growth, take advantage of those opportunities when they arise and make sure they don’t slip through the cracks again.
A firm financial foundation will help you achieve success in your business endeavours by giving you the tools necessary to succeed—whether it’s investing in new equipment or hiring new employees—and by protecting against unforeseen setbacks like layoffs or unexpected expenses (like a broken water heater).
Finding your financials in a tailspin isn’t uncommon for business owners
It’s easy to feel like you don’t need to keep a close eye on your finances when things are going well, but in reality, it can be a lot harder to get back on track if things start to go south. It’s also much easier for mistakes and oversights that could have been avoided had you been more diligent about your financials from the start.
That said, finding yourself in a tailspin isn’t uncommon for business owners. But if you know what normal looks like (and when it changes), then you should be able to spot when something is wrong and fix it before it gets worse.
The start of the new year means it’s time to get your finances FIT
The start of the new year is a great time to get your finances FIT.
Financial foundations are a foundation for success. You can’t build your business without knowing where you stand financially, and even if you have an idea, it’s best to take that information and make sure it’s accurate. This will also help keep you on track throughout the year as well. If there are any changes in your financial situation, they should be documented so that everyone is informed about them.
You need to know your financials before you can make changes! A good financial foundation is a strong foundation for your business, but there are some things that may need updating from time to time depending on what stage of business growth or development you’re currently at (if any). For example: if one month comes along where sales exceed expectations due to an unexpected event like winning an award or receiving high praise from clients/customers then this could mean getting more money than usual from credit cards or accounts receivable which means we’ll have more cash than usual sitting around waiting for us so we can pay down outstanding bills faster than normal or maybe even buy something expensive like equipment upgrades which would help improve productivity & efficiency levels while adding value back into our organisation over time thanks again!”
While most business owners know how to control expenses, many lack a solid strategy for revenue generationWhile most business owners know how to control expenses, many lack a solid strategy for revenue generation. As a result, many small businesses don’t reach their full potential. Revenue growth doesn’t happen by accident. It requires planning and effort—and it’s not something that can be done in just one month (or even year). But when you are able to align your expenses with your goals and your strategies for revenue growth, you will have the confidence needed to make decisions with confidence. This makes all the difference in the long run!
Focusing on revenue enables you to take action and grow your businessIf your business is in the early stages, it can be easy to get caught up in day-to-day operations and lose sight of what’s really important: revenue generation. You might not be able to control whether or not a customer decides to buy from you (or even if they find you on Google), but there are things that you can do that will help increase your chances of closing more sales. When businesses focus on revenue, they take actionable steps towards growing their business rather than simply hoping for customers to come through the door. Revenue generation isn’t just about taking orders or selling products—it also means turning leads into paying customers and building relationships with repeat clients. In order to achieve this goal, businesses need some kind of system in place that keeps track of customer interactions across all channels (online and offline) so they know exactly how well they’re doing at retaining customers over time.
Immediate actions you can take to begin growing revenue this quarter are setting goals, building your sales pipeline and identifying opportunities that match your product or service with customer needsImmediate actions you can take to begin growing revenue this quarter are setting goals, building your sales pipeline and identifying opportunities that match your product or service with customer needs.
- Define your goals.
- Set a timeline for achieving those goals.
- Identify what you need to do to achieve those goals (e.g., develop new products or services).
- Create a plan of action by breaking down the steps required for success into smaller tasks (e.g., create prototype, test prototype with focus groups).
- Take action! Now that you have everything in place, it’s time to execute on your plan of action by following through on each task in order until it’s complete. This is where the rubber meets the road—and from here on out, it’s all about making sure that nothing gets in your way as long as we continue moving forward together toward our shared goal: success!
Once you have implemented those immediate actions, you will want to set some long-term goals to achieve over the next 12 monthsOnce you have implemented those immediate actions, you will want to set some long-term goals to achieve over the next 12 months. These goals should be things that are important to you and that can help improve your finances. You may want to make a list of them or create a spreadsheet where each goal has its own column. Next, create an action plan for each one including what steps need to be taken and how much time it will require each day/week/month/year. Once you have completed this process, review your action plan regularly so that when something comes up in life that takes away from completing one of these tasks, it will not derail your entire plan! Finally, don’t forget about rewarding yourself when certain milestones are reached! The end result could mean achieving financial freedom sooner than expected!
Put these tips into practice and get your finances FIT this January!
- Set goals.
- Plan how you’ll reach your goals.
- Track your progress and celebrate success!