In the day-to-day hustle of driving new sales, completing inventory and managing employees, many small business owners may find it tough to take the time to sit down and plan for this new year.
Here's a financial checklist that every small business owner should complete:
Create your 2014 budget and sales projections. Develop your annual business budget and update your sales projections for this year. The most important thing to understand is how many sales you need to make every 30 days to cover expenses and earn a profit. This 30-day sales goal can help put your revenues into perspective by showing you the amount of money you need to make each month.
Meet with your banker. Discuss your current business needs and review your accounts with your banker. Anticipate how your sales goals might impact your need for a new a deposit account, loan or line of credit. If you're looking to add employees, it might make sense to investigate a new business payroll service.
Analyze Your Business's Cash Flow. One of the most important things you should do is analyze your business cash flow. Review how much cash your business took in and how much you spent. If you have trouble maintaining a steady cash flow, develop a plan to remedy the issue. Make sure you understand and can forecast cash flow, especially if you have a seasonal business.
While you're completing the financial checklist, one more item to complete is to gather feedback from your customers. Take the time to nurture relationships with existing customers. Thank them for choosing to do business with you and solicit ideas from your best customers to determine how you can serve them even better in the coming year.
If you create a strong financial plan for 2014 and take time to gather input from your valued customers, you'll be far more likely to hit the ground running and accomplish your business goals from day one.