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The year 2024 has already arrived – and with it an exciting opportunity for a fresh start and new beginnings. This is the perfect time to reflect on what you want to accomplish in your life and create a plan to make it happen. Yeah, we’re talking about planning your New Year’s resolutions. You’ve likely made a plethora of resolutions till now like learning a new skill, digging into the pile of books, eating healthier, traveling more, or getting in better shape in 2024.
But what about your small business’ financial resolution?
If you want to achieve your small business goals and continue to grow your organization, then you must be planning to bring out the best in your business, not just in yourself. By making New Year’s financial resolutions for your small business – and being disciplined and practical with them – you can take your business to the next level this coming year.
Plan for better finances: 5 financial resolutions
Whether it’s building your savings, improving brand recognition, controlling business expenses, or managing your cash flow, here are a few financial resolutions every small business owner should make in 2024 – along with tips about how to fulfill them.
Take a moment to revisit the past
If you want to boost team performance, increase company growth, and shape your business’s future, it’s important to do a review of your business’s past performance. You need to think about and understand your business’ success and shortcomings in 2023 in terms of productivity, profit, customer experience, employee relations, and marketing.
Figure out the biggest achievement and failure that you experienced in your small business in the past twelve months. Moreover, identify the strengths and weaknesses in different areas of your business to discover what you do best and where you can improve. Reflecting on your company’s past performance will help you understand your business better and its market, and eventually attain your ultimate business goals and objectives in 2024.
Ask the following question to yourself to review your business’s past performance:
- Did your business grow?
- What percentage of the business’s revenue and profit increased compared with the previous year?
- Are your sales increased in 2023? Have a grand at the sales graph in your accounting software to see.
- Did your business expenditure over the past twelve months give any cause for concern?
- How much were the cash inflow and outflow in the last year?
- Have you achieved all your desired financial goals last year?
If you find that numbers are better than before, pat yourself on the back. However, if your business hasn’t improved, it’s the right time to make a great financial strategy and plan to get your business back on track.
Upgrade business technology to the latest and greatest
The accounting and financial industry has seen huge innovations in recent years. According to Fortunly, there is a total 64% global fintech adoption, out of which 25% is of small and medium-sized businesses. After all cloud computing, API platforms, accounting software, instant business payments, peer-to-peer lenders, blockchain, AI, and cash flow management– these state-of-the-art technologies from “fintech” innovators make it possible to do everything from automated invoicing and forecast cash flow to ordering raw materials and bill payments from anywhere, anytime.
Leveraging financial technology lets you streamline business processes, allowing you to save time and energy and focus on what is important for your business. Therefore, you should invest in technology in 2024 to operate your day-to-day operations and boost the performance of your company’s financial services. There are tools built to automate invoices and bills, create a realistic budget, streamline accounting and business payments, track financial analytics, and forecast cash flow.
Here are some financial technologies that you should think of adopting for your small business in 2024:
- Accounting software
- Instant payment solutions
- Budgeting tools
- Payroll management systems
- Cash flow forecasting tools
- Inventory management
Invest in business growth
Every young entrepreneur wants to turn their startup dream into reality. To get the best of your business and reach a certain level of success, you must invest in your business sooner or later. Creating amazing products and delivering top-notch customer services are wonderful, however investing in your business is essential to take your business to its next development phase, build wealth, and meet other financial goals. So, if you haven’t invested in your small business in 2023, don’t let yourself end 2024 the same way.
But before you get started investing, it’s a great idea to draw a business financial roadmap and understand the basics of your business’ finances. Also, you must have a great understanding of your cash flow and the amount of risk attached to your small business. While it’s possible to invest with the help of Robo-advisors, we recommend you choose an advisor who can be on your side with a deep understanding of investment processes. They will help you decide what to invest in, including when to buy and sell.
If you’re feeling intimidated by the many investment options out there, here are the best investments in 2024 for the long-term growth of your business.
- Certificates of deposit
- Money market accounts
- Growth stocks and funds
- Forex trading
- Money market funds
- Movement bond funds
- Rental housing
- Short-term corporate bond funds
Start an emergency or contingency fund
Emergencies happen to your business anytime. It doesn’t matter how profitable your business is or how financially organized you are as a business owner. Having money in a high-rate savings account can be a lifesaver when unexpected expenses make their way into your business, like hiring employees, equipment procurement and maintenance, or time-sensitive business growth opportunities.
A well-funded emergency or contingency fund can keep your business afloat in the event of an unexpected financial blow. Keeping backup cash on hand can prevent you from relying on credit cards or taking out high-interest loans. Though how much should you save for emergency funds depends on your financial circumstances, a good rule of thumb is to have enough to cover at least three to six month’s business expenses. You can also use an emergency fund calculator to find that perfect number. While creating an emergency fund, make sure it’s separated from a bank account you use daily, otherwise, you have to compromise with your reserves.
Keep an eye on your cash flow
This may be the last but is the most important financial resolution– resolve to review your business cash flow at least once a month in 2024. Reviewing it is important because it gives you the real picture of your business from the working capital perspective. Also, it tells you exactly how much cash you have for the survival of your business in the coming months.
By having a detailed cash flow analysis, you will know exactly how much money should be in the bank. Use a cash flow managing and forecasting app such as Forwardly that makes cash flow analysis super simple. It helps you estimate the payments you expect to flow in and out, see what your future cash position would look like, make better financial decisions, and plan for potential problems before they cause a cash crisis. If you frequently find yourself grappling with how to manage cash flow, Forwardly could be the solution you need.
The bottom line for 2024
Set impactful New Year’s financial resolutions for your small business to achieve success in 2024 and beyond. Choose specific, realistic goals. Stay honest and disciplined. Rekindle motivation and get ready to overcome challenges as they come up.
One way to improve financial management in 2024 is to optimize cash flow. Forwardly makes this simple, and you can sign up for free. Benefit from affordable instant payments, save up to 80% on processing fees, streamline cash flow, and eliminate debtors with automatic payments. Transform your successful financial journey today.
