With a new decade upon us it’s a good time to evaluate your business. Begin the new year with a detailed business plan in place, as well as defining your goals. Go beyond the profit and loss figures; maybe it’s time to research using new suppliers, a new marketing strategy, etc.
Use the arrival of the new year as a time to step back and re-focus. By financially planning for your business, you give yourself an advantage. Being proactive rather than reactive can have positive results.
Budgeting
You need to have a budget in place to ensure a positive cash flow. This needs to cover not only expenses such as payroll, but contingencies as well. Money will need to be set aside for taxes, capital expenditures, overhead, etc.
Make Upgrades
Look ahead to what you wish to accomplish in the coming year. You may wish to buy new computers, or upgrade your technology.
This is also a good time to consider whether you need to hire more people to accomplish your new projections.
Purchase Group Insurance
If you don’t already have it, group insurance and employee benefits can be a useful tool in attracting and retaining qualified personnel. It’s also a wise decision to decide on changing your corporate identity. Changing your corporate identity may mean different liability and tax considerations; many of which are required to be done in the first few months of the year.
If you are partners in a small business, it can be beneficial that all partners have a term life insurance policy. These can be taken out, with the other partner named as beneficiary in order to insure the business. Agree on the amount and the length of term you wish to purchase; this will safeguard your business should something happen to one of the partners.
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