A new year is both exciting and stressful for modern small businesses. It’s exciting in that you have an entire year of opportunities and possibilities ahead of you, but it’s stressful in that you have no
The first thing you’ll want to do is to speak with your banker or financial adviser. It’s good to get a rundown on your business’s current financial standing. Ask your finance person to look over your year-end financial statements and give you feedback on what you’re doing well and where you could do better.
If your financial person points out that you have a problem with cash flow, discuss the possibility of opening up a line of credit. This will be helpful to your business in the event that you get into a tight spot and need funds at some point during the year.
Work with Creditors
And, speaking of credit, if you already have creditors that you’re working with, the beginning of the year is the perfect time to set things right with them. If you owe money that you’re having a hard time paying, work out a new payment plan, new payment terms, or some other option to help you get caught up. This will help to clean up your credit so that you can get more of it in the future to aid your business.
Get the Rundown on Receivables
The new year is also a good time to pay close attention to your receivables. Check to make sure your receivables professionals are doing their jobs correctly and really focus in on having them track down overdue accounts. Many people are in “get it right” mode at the start of a new year and will be more willing to pay off their debts than they were in the past.
Cut Unnecessary Spending
Another thing you’ll want to do is to cut out any unnecessary spending. Take a loot at your expenditures- a careful, critical look- and if you find key areas where you’re spending too much and can cut back, do it! This will help to ensure that all of your business money is being put to the best possible use.
Finally, step up your marketing efforts in the new year! Promote your business, and offer special deals to bring in new customers. Everyone is looking for something new and different in the new year, so it’s the perfect time to attract new clients and to do some “reinventing” of your own as well.