HOW TO SET YOURSELF UP FOR A FINANCIALLY HEALTHIER 2023
The past few years have demonstrated one main thing: if you think you know what’s coming, you’re mistaken. From our personal lives, our professional experience and our financial forecasting, it has been a rollercoaster ride having us constantly considering what could possibly be coming after the next loop. However, while we can never truly know what will happen next year, across all areas of our lives, there are ways to set yourself up as best you can for whatever comes our way, making for a financially healthier 2023.
Keep a close eye on your business credit
Taking out a loan or investment in this climate might come along with its fair share of warnings, however that’s not to say it isn’t the right decision for you and business. You will need a healthy credit rating, though, as banks become more cautious about approving credit while interest rates are climbing. Keep an eye on your business credit and see where you’re positioned. If your score is lower than optimal, talk to your bank, or a Shaw Gidley consultant, about an effective and sustainable pathway to improving that credit score and increasing your chances to use considered credit for growth opportunities.
Check in with your books at least once a month
The best way to support healthy finances is to carefully track where you’re, consistently. While how often you check might be more dependent on your processes (how your invoices are distributed and paid, for example), monthly is enough of a gap to see any clear changes or issues, and manage accordingly.
The more you acknowledge and absorb where you’re at financially, the more apt you are to make decisions and forecast future financial standing more solidly.
While this means you can pick up discrepancies in the books, strategise and make calls based on what you find each month, it’s equally just an important habit to get into to ensure you mitigate risk of finding comfort in being blissfully unaware of potential trouble looming. A financially healthy 2023 is going to require your attention to know exactly where your business stands when decisions need to be made, whatever the year has to throw at you.
Plan for the best, prepare for the worst
2023 could be a year of steadied trajectory for businesses, or it could have its own unique set of surprises. It could be a combination of both. With that, you should plan for the best and prepare for the worst.
What does this mean? Ensuring you have short-term, achievable goals that allow for slow and steady growth, creating greater viability of your business and giving yourself an opportunity to lay out, achieve and celebrate goals. Concurrently, don’t put all your eggs in the goal basket. It’s vitally important to have contingency plans and financial safety nets in place to prepare you for unforeseen hurdles. This could be tax debts, interest rate rises or something completely different (as mentioned, we now know anything is possible).
It’s not just financial preparedness you should be setting down. Make 2023 the year you look at your process, procedures and team dynamics. Are you prepared for client drop offs? For your best performing team member to resign? Have you upskilled other employees so as not to be resting on one single person, who could not only leave but take your clientele with them? Overhaul any areas of your business, financial and otherwise, where one degree of movement has the potential to bring everything down.
Plan now, prepare for the future and set yourself up for success next year.