Has your business been in bit of a financial slump? Maybe it’s time to detox, re-evaluate and start afresh with aspects of your company that just aren’t working anymore.
Businesses, like anything, change and grow over time, so it’s important to evolve as the world does. Running a successful company means keeping on top of things and making sure your business runs as smoothly as possible – one way to do that is by ensuring your finances are in their best condition by taking the time to monitor anything that could be negatively impacting your company.
If everything’s running smoothly, it can be easier to just ignore your finances and expenses. However, over time things may change and the way your business works may differ from year to year, or even month to month. For instance, you don’t want to get to the end of the year and realise you’re over budget and have to reorganise for the next year to achieve your goals again.
First Things First
Before you start making changes to your financial plan, you should look at and make an audit of your current budget. Combine, cut and create to make a new financial plan and budget that will work in your current climate. Even a few, seemingly minuscule changes could add up to a big change in your company and save you a lot of money in the long run.
Catch Up with Clients
Work out how you’re getting payment from your clients. Although you might not want to higher your fees or product prices, you can just take higher deposits and make sure individuals are paying in part for your services, in case they decide to pull out and you lose money. It’s also important to identify which of your customers are paying their invoices late or not at all. Collect debts that you are owed and find out who’s behind in their payments to you – the time of leniency is over.
It’s easy to procrastinate and say you’ll do things tomorrow. However, a full financial detox requires setting goals and completing them after you’ve taken the necessary steps. Remember to leave some extra budget in case of emergencies, so you’ve got some leeway when things do not go to plan. Work out how much you’ve got to intake, to be able to spend and figure out how in the following year you can maximise profits.
Budget Like There’ll Be A Tomorrow
Think about downsizing your office or working remotely to save costs on office space. If there’s only five of you in a working environment that can hold twenty, think about looking for a hot-desking opportunity for your team. This will also benefit those that have to travel far to come to work and save them on commuting costs too. You have to really sit down and work out what your business needs and what it doesn’t. Keeping up with costs is time-consuming and dull but will be worthwhile for you and your business in the financial years to come.