December 13 2016
A new year means a new start! Set aside some time in the next few weeks to reflect on where your business has been and where you'd like to see it go in 2017. Even if you don't believe in making personal resolutions for the New Year, it's helpful to write out your goals for your small business. Studies have shown that those who write out goals are more likely to accomplish them. Here are our picks for the top resolutions to help your business really take off this coming year.
1. Measure the health of your business using key metrics
Monitoring your key financial metrics is like taking your business’s temperature — tight cash flow and high A/Rs are a sign your business is under the weather. By knowing your key financial metrics, you can monitor the health of your business on an ongoing basis. The right ratios will help you plan proactively instead of reactively. You will see hazards ahead and can strategize before they become a problem. Some of the most important key metrics are:
- Gross Profit Margin
- Current Ratio
- Aging Accounts Receivable
- Cash Flow Forecast
- Revenue Growth Rate
2. Focus on your passion
You're wearing a lot of hats as a small business owner: CEO, CFO, CMO, CTO, COO. To concentrate on your role as CEO, you will need to find key partners who can wear the other hats. By delegating some of those other roles, you will be better able to focus on your true passion — running your business. And when you're ready to hand off your CFO hat, we can help with that!
3. Get rid of your biggest pain points
What's keeping you up at night and frustrating you during the business day? Some common pain points of small business owners result from a lack of:
Resources or capital
Trusted advisors or support
Identifying yours means you can begin to find the right solutions to help alleviate them.
4. Find out just how profitable your business really is
Do you know if you're in the red or in the black? We can help you understand how profitable your business is, and can help you manage how profitable your business can be. Determining your profit and paying yourself first helps you operate a lean company that is permanently profitable.
5. Plan for taxes all year long
Don't make the mistake of only thinking about taxes at the end of the year. Putting away money in a special account once a month for quarterly taxes hurts less when it's time to pay Uncle Sam. Plus you can take advantage of tax benefits as they come along. Your CPA or tax advisor can help you navigate the ins and outs of the tax laws to maximize every deduction.
We’ve worked with plenty of entrepreneurs and business owners on their resolutions. If you’re ready to make the most of the New Year, contact us.
Here’s to a profitable 2017!
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