It’s common to associate resolutions with the beginning of a new year, but why not get a head start on your resolutions this year before January 1st? By getting a handle on your resolutions in the fourth quarter, you have the opportunity to make adjustments before the end of the year and can be ready to start fresh come January. This forward-thinking approach also allows you additional time to reflect on what’s working, as well as what needs to be adjusted, adapting for the challenges and opportunities that your business is currently facing. So here are 5 forward-thinking resolutions for your small business:
Get financial problems under control. One of the most common personal New Year’s resolutions is to make a budget and stick to it. Unfortunately, since small businesses deal in larger amounts of cash flow, they can find themselves in even bigger financial problems than individuals. Whether it’s out-of-control debt or slow-paying client problems, chances are you and your business will breathe a little easier once your financial problems are under control.
Stop wasteful spending. Running a business is complicated, and it’s all too easy to spend money where you don’t need to. By looking over your books carefully to find redundancies and places where you could cut back, you’ll free up more cash for the day-to-day expenses that you need to keep your business thriving.
No more hemorrhaging cash. When you do a search for “top New Year’s resolutions,” you’ll almost always find some variant of “spend less” or “save more.” Businesses are no exception. While the old adage that you’ve got to spend money to make money is absolutely true, it might work a little better with an addendum that first you’ve got to know what and how much money to spend.
Don’t extend yourself too much. Steady, reliable growth is the goal of any small business, but the key words there are “steady” and “reliable.” Growing too much or too quickly can be just as dangerous as not growing enough. It can be hard to say no to an opportunity, but before you take on new work, you have to make sure you have the infrastructure, workforce, and resources available to get the job done. That’s another place where cash flow comes in. New work may mean more income down the road, but you need the cash in hand to finish the work before you can get paid for it.
Invoice regularly, and in a timely fashion. Slow-paying client problems can knock down even a successful B2B business. Slow-paying clients aren’t always something that you can avoid, but you can set yourself up for success by ensuring that your own invoicing procedures are timely and regular.
You may have noticed that all these resolutions have something to do with finances, spending, and cash flow. That’s not an accident. By the fourth quarter you should know where budgets stand for the rest of the year and should have a good idea about how things should look in January. Good, reliable cash flow is absolutely vital to the functioning of any small business, and there are times when a quick infusion of new cash is just what a business needs to stay afloat or get ahead. But many small B2B businesses are puzzled by how to get access to the cash they need, especially when faced with cash flow obstacles like slow-paying client problems. That’s where QC Capital can help.
Receivables factoring from QC Capital lets you turn your unpaid client invoices into quick cash, so that you have the money you need to run your business, when you need it. And that’s a resolution that makes sense all year round!