Across the globe in 2020, millions of businesses were financially impacted from the current pandemic, which is why planning ahead for the full 2021 financial year for your business is crucial.
You may think it’s planning far ahead, but with these unprecedented times, thinking proactively about your business’s future is the right thing to do. Even more when looking at business finances as a whole.
Can Your Broaden Your Business Niche?
Now more than ever, we have seen businesses adapt and change to further enhance the profits they can make.
This step is more towards how you can adapt your business in a way that profits can be potentially raised whilst fitting in with the theme of your company.
For instance, many businesses have moved online as well as already being present on the high street, but especially if you look at the current situation in the United Kingdom, enforced lockdowns mean all non-essential retail stores have to close.
So, could you adapt your finances to cater around a potential movement that could help increase your audience base?
When looking at modernising your business, the modern tools of social media and online can really help rank up your visibility, But to an extent, you do need to think carefully about how much you are willing to invest and think hard on what you think it could bring back. Could it revolutionise your business for the better? Or, should you focus on tools (such as social media) at the moment as they require lower budgets?
Furthermore, if you are service based, then you need to make sure you can increase your visibility where you can. Place budgets on social media (even organic social can bring in leads) and online platforms if you have a budget to support this and let your business be heard.
Increase Invoice Times.
Every business always looks to grow and exceed financially, but many businesses face the experience of invoices taking far too long to be paid.
The most effective way to make sure you receive your deserved invoices, is to make a proactive approach at your end.
You need to get yourself into the routine of being thoroughly organised and systematic when sending out invoices, and try and send them as early as you can. The magic of automation now, also means that they can be sent directly to the customer or business as soon as the enquiry is made.
If you are an ecommerce business, then make sure that your products can only be purchased before the order confirmation is made.
If you have a physical store and online store, then you can provide customers with delivery fee choices that help you not lose out on shipping expenditure, as well as the more popularised ‘click and collect’ services, which means the prepayment can be made, and they can pick up from your store. Many businesses even add a small fee for the collection service, so you can still create small, additional profits from your product fees and charges.
This again shows how collectively, online and traditional retail can come together to help cater to all of your customers.
Professional Help & Advice.
Accountants may provide an extra expense onto your business, but it’s an investment which means all of your finances are organised and structured for constant improvement.
Accountants are professionals who have all the skills required to manage finances and ensure that your company is on the right track with its financial goals and objectives.
Also, having an accountant, or even receiving financial advice can result in you being advised on ways you can update and improve your current financial structure to help remove potential unnecessary costs and areas that can be adapted for increased profits.
Just like many of us have our own personal savings, businesses should hold their own.
In any time of emergency, if it’s possible, you should place money aside that should only be used if your business is facing a critical bump on the road.
Holding an emergency fund is crucial, as that could be the saviour of your business.
Sell Unwanted Assets.
Selling any of your unwanted assets can actually be a fantastic way to gain cash and reduce your overall storage space and costs.
You could also consider leasing main assets if possible as it helps to further spread the cost over a longer period of time.
Look At Potential Sales & Prices.
If you find you can increase the pricing of your products, then you could consider upping the prices.
You could also look at marking down products, this could be any surplus stock you have or even discontinued products, but you need to ensure you comply with the pricing legislation.
Maintain Your Records.
To ensure 2021 is a successful year for your finances, you need to ensure that you have fully updated and spotless records.
You can choose to do this in house, or you can simply hire an external professional to help you.
In terms of the amount of data your records hold, it’s something that any business owner should be fully aware of and learn, as it features everything relating to your products and services and where your main profits and losses lie.
Start the year successfully for your business and exceed with your financial goals this 2021.