Financial planning for the year ahead is a task you might be very tempted to leave on the back burner — particularly if it’s something that doesn’t come all that naturally to you. But ignoring the problem won’t make it go away. In fact, in doing so, you’re much more likely to fall into bad financial habits that can have long-term implications for your business.
Good financial management will save you time, money, and stress, helping you to prioritize expenditures, make informed spending decisions, and effectively allocate resources. With this in mind, here are nine key things to bear in mind when it comes to planning your finances ahead of 2023.
1. Invest In Growth Opportunities
Driving cost reductions in the short term should never come at the expense of long-term business growth. As you look ahead to 2023, make sure you consider growth opportunities and set money aside to properly invest in them. A commitment to growing your business will drive innovation, profit, employee retention, and customer satisfaction.
2. Apply For Loans When You Need Them
So many of us have been conditioned to fear business loans and avoid them at all costs. Not only is the application process often lengthy, but taking out a loan presents several risks and limits your flexibility to run your business exactly as you please.
Nonetheless, business loans can be extremely beneficial. Indeed, the Small Business American Dream Gap Report found that 26% of business owners who failed to obtain a loan ultimately gave up on expanding their business because they didn’t have the cash to do so.
Don’t be afraid to take out a loan if and when you need to — so long as you’ve crunched the numbers and determined how it will benefit your business. You might, for example, use the additional money to open another site, hire more employees, purchase additional inventory, or launch a new product line.