Creating New Year Financial Resolutions for Your Business
It’s a New Year, which brings renewed excitement and determination to take a fresh look at your finances and ensure your financial resources support your goals for your business. It’s wise to schedule time with your dedicated Allegiance banker in January to gain their insight and enlist their help to keep you on track in the coming year. During that meeting, be prepared to discuss the following items:
- Establish Your Goals – This is the first step and will influence the choices you make over the next 12 months. Your goals should expand to include the financial, physical, intellectual, family, social and spiritual aspects of your life to ensure you thrive both personally and professionally.
- Understand Tax Changes that Impact You Personally and Professionally – Ensure you’re aware of new IRS rules that influence your business and financial goals. Your banker and financial planner are valuable resources to keep you abreast of such shifts so that you can adjust your strategies accordingly. Prioritize and schedule regular meetings with these two key resources to ensure you are up to date and not only maximizing your deductions based on current laws but also planning for changes that might be coming.
- Plan Business Growth – Do you need to add new suppliers to meet your needs over the coming months? Is your current facility adequate for staffing increases? It’s essential to invest in the tools, technologies, and resources your business needs to support its growth. Now is the time to discuss how to align your financial resources to support your growth objectives.
- Focus on Marketing – A proven way to grow your business is to increase how many potential customers know about it. Nurturing existing customers and attracting new ones are essential for your business to thrive. If marketing and promotion are not your areas of expertise, consider enlisting the help of an agency or a dedicated hire to handle this important task.
- Review and Adjust Your Budget – Budgeting is key to financial successes. While larger companies often understand the importance of creating a budget, many small businesses don’t have a full appreciation of the benefits of having an official budget. The start of a new year is the perfect time to establish a budget and stick with it. Enlist the help of your banker and accountant to prepare a budget that optimizes your cash flow and minimizes your personal and professional in the new year.
- Pay Down Credit Cards – Nearly one out of four small businesses carry a balance on their business credit cards. Not only can credit card interest rates be prohibitively high, but you also end up paying mostly interest when you only make minimum payments each month. It’s understandable to need quick access to credit, however, there are sometimes better alternatives. Credit card interest rates are typically high compared to a bank loan or a bank line of credit. Consider bank-sponsored flexible financing options available to you to determine how you can eliminate the need to rely on credit cards for personal or business funds or working capital without compromising fast access to cash.
Meeting with your Allegiance Bank financial expert is invaluable to your financial success and achieving your New Year’s financial resolutions. Our bankers have deep experience working in the community and can suggest additional strategies to help you reach your goals, while being mindful of your other financial priorities. We are committed to seeing you succeed this year!