As the fireworks fade and the buzz of New Year’s resolutions settles, it’s time to shift our focus to the real work: building a thriving business in 2024. And what better foundation than a rock-solid financial plan? Ditch the generic resolutions and embrace these 10 actionable strategies to conquer your financial goals and propel your business forward.
Chart your course
Think of your business plan as your blueprint. Dust it off and revisit your 2024 vision. Has the economic landscape shifted? Update your cash flow and sales forecasts, factoring in potential market fluctuations. Don’t just predict smooth sailing; prepare for storms too. Run scenario planning exercises to test your resilience under various conditions. By anticipating challenges and having contingency plans, you’ll be ready to weather any storm.
Eliminate waste and optimise spending
Rising costs don’t have to sink your ship. Scrutinise every line item in your budget. Can you negotiate better deals with suppliers? Explore cost-sharing opportunities or implement remote work options to save on rent. Every penny saved is a knot in your financial safety rope.
Streamline accounts receivable and prioritise collections
Get paid promptly! Implement a robust system for following up on overdue invoices. Consider early payment incentives or explore shorter payment terms. Automate reminders and escalate delinquent accounts efficiently. Remember, cash flow is the fuel that keeps your business engine running and getting paid on time is a key factor. A debt collection service like PromptPay can be a great option.
Review pricing
Don’t let inflation sink your profit margins. Analyse your pricing strategy. Are you undercharging compared to the market or the value you deliver? A strategic price adjustment can be the wind in your sails. Conduct market research and analyse your production costs to determine a sustainable price point. Remember, value-based pricing can justify a premium, while low-value offerings might allow for discounts to attract new customers.
Automate and leverage technology
Free up your crew and streamline operations by embracing automation. Identify repetitive tasks that can be handled by software or AI-powered tools. Streamline your bookkeeping with accounting software, automate data entry, and utilise project management platforms to delegate tasks effectively. Remember, every task you automate frees up valuable time and resources for more strategic initiatives.
Enhance your financial reporting
Knowledge is power, especially when it comes to your finances. Upgrade your financial reporting systems to transform data into a clear and illuminating insights. Implement dashboards and real-time reports to track key performance indicators like cash flow, profitability, and inventory levels. Use this knowledge to make informed decisions about pricing, marketing, and resource allocation.
Review profitability
Don’t just survive, thrive! Analyse your profit margins with laser focus. Identify areas where you can optimise your product mix, explore new revenue streams, or revisit your pricing strategy. Remember, maximising profitability fuels future growth and allows you to invest in innovations that strengthen your competitive edge.
Optimise labour costs
Analyse your operations and identify tasks that can be delegated to junior staff, outsourced to freelancers, or even automated. Invest in employee training and upskilling to boost their efficiency and value. Consider flexible work arrangements to attract and retain top talent. Remember, a well-trained and motivated crew is key to maximising productivity and minimising labour costs.
Explore alternative revenue streams
Don’t put all your eggs in one basket. Diversify your income streams to weather economic storms. Explore additional services, new markets, or even partnerships. Remember, the more opportunities to generate revenue, the less risk.
Outsource your CFO, accounting and bookkeeping
Consider outsourcing your CFO services, accounting and bookkeeping tasks to a reputable firm. Gain access to expert guidance, save on costs, and free up your time to focus on what you do best: running your business. Remember, investing in your financial future is an investment in the long-term success of your company.
Looking to take control of your business’ finances in 2024? We can help. Keeping Company can take your accounting and bookkeeping to the next level. Contact us today.
The Keeping Company team are available to assist you to capitalise on any of the Budget measures or minimise your risk.
As always, the detail is important so please let us know if we can assist.
At Keeping Company, we’re not just accountants, we’re business people too. With our counsel, your business can reach its full potential.
We have a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together and ready to help, contact us today.