For our last blog post of 2013, we thought it would be appropriate (in terms of both timing and the industry in which we work) to take a look ahead towards next year and how to avoid aiming too high – or not high enough – for financial goals.
A new year is a time when everyone is ready for a fresh, clean slate, and business owners are no exception. The problem is that looking that far ahead, with no way to predict the twists and turns that will inevitably pop up along the way, can mean that a wrench is quickly thrown into your financial plans for the year. That’s why it’s important to ensure your goals are realistic for your and your business.
An article over at the Intuit Small Business Blog entitled How to Set Realistic Financial Goals for 2014 covers this subject in more detail, with five helpful tips on how business owners can maintain growth without losing the motivation to do so after only a few weeks.
Here’s a look at one of the recommendations:
4. Anticipate what growth will bring. “Consider that if your revenue will be increasing, your expenses are likely to increase as well,” Tayne says. To accommodate an influx in sales, you may need to hire more staff, buy new equipment, or stock up on supplies. Keeping these new expenses in mind will help you set up reasonable goals and expectations for your company.
If you’re aiming for growth – and why on Earth are you running a business if you aren’t? – then this is very sensible advice. It’s important to focus on more than just more sales and revenue, because an increase in those two means an eventual increase in staff, equipment, and other necessities that keep your business up and running. Anticipating growth for the year should also come with a certain expectation in terms of what that growth will require in terms of new investments.
The article goes on to offer some tips on documenting goals, setting up a game plan, being aware of market changes and cutting expenses. It’s well worth a read if you’re still setting up your financial goals for 2014, and should help you keep them grounded in the reality of your business’s own situation.
What do you think? Do you feel financially ready for 2014? Did you find these tips useful? Your thoughts are always welcome, so let us know!