Most people begin planning their resolutions in the days leading up to New Year’s (or even a few days after). But for business owners, resolutions should be planned and prepared for, especially if establishing stability, building a financial safety net, scalability and growth are on the list.
Not sure where to begin? Here are a few common goals for business owners
Cash reserves are savings accounts that businesses build to establish a safety net in case of cash flow issues. If your business experienced distress this year, make it your 2021 goal to build and maintain a cash reserve. Create a savings plan based on next year’s projected revenue, then open a new account just for saving.
If your small business is saddled with significant debt because of 2020 challenges, those hurdles can impede growth. Set a goal to overcome large debt with a targeted debt-repayment/reduction plan. You might be able to renegotiate terms, interest rates and fee schedules with some creditors, for example. Understanding this goal can influence your 2021 budget and other financial plans as well.
If your business is well-established, make scalability a priority for 2021, and take time to explore what that means, such as new equipment, hiring more staff, or opening another location. If your scalability plans require working capital to fund your growth, consider a ROBS Rollover Funding Plan for your franchise. A rollover is a debt-free, penalty-free, and tax-deferred means of accessing funds to open a new franchise or capitalize an existing business. Tenet Financial Group specializes in this type of funding plan as a Third-Party Administrator (TPA) for thousands of clients.
When it comes to making your goals a reality in the new year, don’t waste another moment, and start planning for them now! At the very minimum, careful and thorough review of where this year has taken your business, both good and bad, gives you a better pulse on where you want to be this time next year.
Written by Kelly Krueger has been a Senior Consultant with Tenet Financial Group for nearly a decade. Her prior experience as a Financial Service Professional, coupled with 20+ years of Marketing, Public Relations, and Customer Service experience, is what gives Kelly a well-rounded, empathetic approach to assisting her clients. To connect with Kelly, email firstname.lastname@example.org or call 810-584-7255.