5 Financial New Year's Resolutions for Your Small Business
The new year is here, and it's time to offer your business the boost it needs in order to be more successful. Are you hoping to transform your finances in the coming year?
With as many as “25% of small businesses” folding due to problems with cash flow, it's important that you learn how to effectively manage your finances. These New Year's resolutions for your small business will help you get your financial priorities in order. You will be able to track where money is going throughout the year, and discover how to improve your overall financial success.
Resolution #1: I Will Charge What I'm Worth
As a small business--especially one that's just starting out--you may struggle to set prices that reflect what you're worth. Big businesses may offer lower prices, but they don't offer the same high-quality services or personalized service that you do. Evaluate how much your goods and services are really worth, then set prices that will allow you to achieve the profit you need. “Setting the right price” will also help customers better appreciate exactly what your business is able to do for them.
Resolution #2: I Will Focus on the Right Marketing Metrics
When it comes to your marketing, it's easy to get caught up in vanity metrics: the metrics which appear to show improvement or marketing success, but which don't have a substantial impact on your business's bottom line. Instead of getting caught up in things like Facebook likes and website visits, take a hard look at the metrics that genuinely reflect success. These include increased sales, improved customer retention, and customers who move further down the sales funnel.
Resolution #3: I Will Cut Out Unnecessary Expenses
Is there a pet project that's draining money out of your business without showing a corresponding return in profit? Do you have a serious drain on your current financial status that's leaving you struggling to pay the bills? Look for ways to cut unnecessary expenses throughout the year to help improve your overall cash flow.
Resolution #4: I Will Balance Cash Flow
Do you have periods of great income, followed by seasons when it's difficult to break even? While some small businesses are highly focused on seasonal profits, others simply haven't managed to balance cash flow in order to keep bringing in customers in a steady stream. Take the time this year to evaluate and balance your cash flow. This ensures there's plenty of money set aside to see your business through the lean times.
Resolution #5: I Will Let Go of Things that Aren't Working
Sometimes, even the best strategy--the one you've invested the most in, or that you thought would be the most likely to ensure your business's success--won't work. Instead of pushing more money into a strategy that's failing, commit to letting go of those things that simply aren't working. This might include changing your marketing strategies, or even choosing not to offer a product or service that isn't working out the way you intended.
Learning how to effectively manage your cash flow is one of the most important strategies for small business success. This year, take matters into your own hands. Ensure that you have the tools necessary to help your business experience financial success throughout the year and beyond. These New Year's resolutions are an excellent starting point for changing your financial outlook for the better.