Most people begin planning their New Year’s resolutions in the days leading up to December 31 (or even a few days after). But for small business and franchise business owners, New Year’s resolutions should be planned and prepared for. In order to reach success with your 2021 business goals, don’t wait until the end of the year to get planning—you should start right now!
Making your New Year’s resolutions earlier in the year and setting up a clear path to follow can ensure you meet those goals. Change doesn’t happen overnight. By outlining your goals for 2021 sooner, rather than later, you give your business the framework to begin making changes and position yourself for success.
Think carefully about the goals you have for your business or franchise in the next year, then break down the steps you need to achieve them. With a clearer plan in place, you can make the necessary changes in your business now that allow you to enact your plans more easily come January 1.
3 New Year’s resolutions to consider for next year
2020 has been a difficult year for many businesses across all industries. Next year’s resolutions are more likely to focus on establishing stability and building a financial safety net, followed by scalability and growth. If you’re unsure of what your business resolutions will be, here are a few to get you started.
- Build a cash reserve: Cash reserves are savings accounts that businesses build to establish a safety net in case of cash flow problems or more severe financial distress. This year certainly showcased the importance of cash reserves. Unfortunately, many business owners make a plan to build one, then fall short when it comes to actually saving. If your business struggled this year, make it your 2021 goal to build and maintain a cash reserve. Plan ahead now and create a savings plan based on next year’s projected revenue. Then, open a new account just for saving, so everything is ready on January 1.
- Achieve a comfortable debt level: Unfortunately, 2020 was also a difficult year for businesses in terms of debt. If your small business is saddled with loans or credit line debts, it can be difficult to overcome those hurdles and truly grow. Making a New Year’s resolution to overcome large debt and planning ahead can help ensure that you have a repayment plan in place and a target debt level to get down to. Understanding this goal can influence your 2021 budget and other financial plans you might be making before the year’s end.
- Explore scalability: If your business is well-established, and you’re interested in taking it to new heights, make 2021 the year you do it! Make scalability a priority for next year and take time to explore it. Strategy is one of the key components of any business’ scalability, which means that planning ahead is crucial to your success next year. Make your plan now, then put it into action by investing in the business structure, new employees and equipment necessary to build your operations even higher.
When it comes to making your goals a reality in the new year, don’t waste another moment and start planning for them now! If your business requires additional funding to bring your visions to life, reach out to the consultants at Tenet Financial Group.