The start of a new year is the perfect time to reassess your strategies, set clear goals, and lay the groundwork for growth. Here are six practical goals to help your business thrive this year.
1. Define Your Ideal Client
Not every client is a good fit for your business, and that’s okay! When you focus on the type of client that works best for you, you save time, energy, and resources. Ask yourself:
- Who benefits most from my services?
- What are their biggest needs or challenges?
- Which jobs are the most profitable or rewarding for my team?
Defining your ideal client also means recognizing clients who aren’t a good fit. Maybe they drain your resources or don’t align with your values. That’s your cue to create a plan to either refer them to someone else or, if necessary, let them go professionally and respectfully.
2. Delegate More Responsibility to Your Team
If you’re doing everything yourself, you’re holding your business back. Delegating tasks to your team frees you up to focus on the bigger picture and gives your team members a chance to step up. Identify those on your team who have proved to be reliable and capable of handling additional responsibilities.
Start by handing off the smaller stuff, like ordering materials or scheduling. Next, move toward bigger responsibilities, like managing projects or working directly with clients. Sharing the workload helps your business run smoother and lets you grow without burning out.
3. Establish a Cash Flow Forecast
Cash flow can make or break your business. A cash flow forecast helps you plan ahead, so you’re not caught off guard by slow months or surprise expenses. It can also help you identify changes in some of your business processes, such as invoicing or bill payments.
Use your past income and expenses to predict what’s coming, and make a plan to manage it. With a forecast, you’ll know when to save, when to spend, and how to stay on top of bills and payroll. You can use tools like QuickBooks Online (QBO), Xero, or even a simple spreadsheet to keep things organized.
4. Save for Taxes
No one likes a surprise tax bill, but you can minimize surprises if you plan ahead. Start by setting up a system to save for taxes. One way is by opening a separate savings account specifically for tax savings. Put aside a percentage of every payment you receive, and work with a tax accountant to figure out what tax you will owe each quarter. This way, when tax time rolls around, you will be ready to pay them without any stress.
5. Pay Down Business Debt
Debt can weigh your business down, especially if it comes with high interest rates. Take a look at your loans and credit cards and prioritize paying off the ones with the highest interest first. Make minimum payments on everything else until those are gone. If it makes sense, look into consolidating your debt or refinancing to get a better interest rate. Paying down debt gives you more flexibility and frees up cash for the things that will grow your business.
6. Hire a Bookkeeper
If managing your books is taking too much of your time or causing you stress, hiring a bookkeeper might be the smartest move you make this year. A bookkeeper can do so much more than just track expenses. They can help with all the goals above:
- Defining Your Ideal Client: A bookkeeper can provide financial reports that show which clients and projects are the most profitable, so you know where to focus your energy.
- Delegating Responsibility: Handing off your bookkeeping tasks will free up your time for other priorities.
- Establishing a Cash Flow Forecast: A bookkeeper can create and manage your cash flow plan to keep your finances steady.
- Saving for Taxes: A bookkeeper can organize your records and ensure that you’re setting aside the right amount for taxes.
- Paying Down Debt: With clear insights into your finances, a bookkeeper can help you find extra cash to tackle debt faster.
Hiring a bookkeeper lets you spend less time on paperwork and more time growing your business.
Ready to make these goals happen? This article, How to Set Specific Goals and Achieve Them, provides a step-by-step guide to turning your ideas into action.
This year, take charge of your business with clear goals and a solid plan. Let’s make it your best year yet!