Eight New Year’s resolutions that businesses should follow
Every year many of us decide to set a New Year’s resolution. Perhaps it is losing weight, going vegetarian or putting extra money away in your savings.
Of course, inevitably, life can get in the way and it is easy to lose track of the promises you set yourself. However, if there is one goal, we would all like to achieve, it is for our businesses to flourish and thrive.
That is why we believe it is important to set some New Year’s resolutions for your organisation that builds resilience and helps you grow.
Here are our eight New Year’s resolutions for businesses to follow:
Look for new funding
It has, admittedly, got more challenging for businesses to find the finance they need to grow, but if you are planning to invest or you need some additional funding to tide you over next year you must consider your options.
Although many of the Government-backed schemes are now closed, the Recovery Loan Scheme has been extended into next year, offering much-needed support to SMEs.
The British Business Bank is also helping to manage many regional schemes for small businesses so it is worth taking a look at its website here.
If you can’t secure funding from traditional lenders, such as banks, have you considered alternative finance, such as peer-to-peer lending or crowdfunding?
Improve cash flow
Cash flow is the lifeblood of your business. Without good cash flow, many companies fail. If you are continually worrying about cash flow then you need to take action to improve it.
This could include strengthening or automating your credit control systems or finding ways to boost sales or reduce costs so that more money is flowing into your company or less is leaving respectively.
The nation is experiencing a cost crisis driven by many factors, including price inflation on many goods and materials, energy costs and skills shortages.
These are beyond the power of our national leaders, let alone you as a business owner, but that doesn’t mean you should do nothing.
Despite how challenging it may seem, there is often a way to reduce costs. This could include switching suppliers, finding savings by reducing or cutting unprofitable activities or recovering some of your costs through tax reliefs.
Get a better picture of financial health
It is very difficult to plan for the year ahead or react to changes in the market without having a clear picture of your organisation’s financial health.
Without the right data and information, how can you expect to make effective decisions?
Thankfully, there has perhaps never been a greater opportunity to learn more about your business through regular management accounts, supported by the latest cloud accounting technology – which can feed you information in real-time.
Retain and reward
Although we have spoken about cutting costs, the one area of your organisation where investment may be key, at least temporarily, is your workforce.
The UK, and much of the world, is experiencing labour shortages in certain sectors following the impact of the pandemic.
This crisis has led many people to reassess their life, including where they work and their goals.
With a million job vacancies in the UK, those who are dissatisfied with their current career are making a switch, so you need to think about how you can boost pay, provide benefits and change your work environment to secure the top talent.
Revitalise your business plan
When was the last time you properly reviewed your business plan? If you haven’t done it in a while, or you made temporary changes to it during COVID-19, you need to revisit it to make sure your goals and current strategies are aligned.
It is worth taking some time to review your operation as a whole and ask yourself what is profitable, what supports cash flow and where are your weaknesses.
This should help you formulate a new business plan for the next 12 months – but make sure you continue to review this and act upon your findings.
Cut your tax bill
Do you or your business pay too much tax? Many taxpayers often pay more than they need to because they do not make full use of the reliefs, allowances and tax saving opportunities available to them.
Every year we surprise our clients by helping them find ways to reduce their liabilities, often saving them and their business thousands of pounds.
This need not be a complex process if you seek the support of your accountant or tax adviser, who can review your activities, taxable income and investments to create a plan that reduces the tax paid.
Ask for more help
Perhaps the most essential advice we can offer is to ask for help. You aren’t alone and there are always people who can assist and support you.
A small investment at the start of 2022 in professional advice, could open up new opportunities to save time and money while reducing the stress and strain of running a business.