Financial New Year’s Resolutions: Setting Goals for Your Small Business

It’s the new year, and there’s nothing more satisfying than starting a fresh chapter (especially when New Year’s Day this year falls on a Monday). It’s time to shake off the highs and lows of last year, put some pen to paper and get cracking with your small business goals for the next 12 months.

If you’re reading this thinking, “Huh?” then don’t panic. It’s never too late to get into the habit of prepping for a never ending January with new business and financial goals to keep you going through the winter months.

We’re diving into the best way business owners can look at goal setting and reflecting for 2024, and some starters for ten on targets to help you get started. So, what are we waiting for - let’s get started.

Understanding the Financial Landscape of the Past Year

Without wanting to sound too much like Yoda: the more you understand about your past, the better you can plan for the future. That means it’s time to take stock of 2023 and have a think about what did and didn’t go well for your business.

It’s been a tricky year for many founders, entrepreneurs and small business owners thanks to high interest rates and inflation. But you may have had some wins you want to celebrate, however small, to keep things balanced.

Some questions to ask yourself: did your business adapt well to market changes? How did your financial decisions impact overall performance? What were some financial wins you’d like to replicate next year? Taking the time to reflect is pivotal for planning ahead.

The goal is to start the next financial year not only brighter, but also more strategically sound and prosperous. Wouldn’t that be nice?

Setting Smart Financial Goals

Setting financial goals is a game-changer for small businesses, and it's more than just aiming high. It's about getting SMART - clear, trackable, realistic, relevant, and timely goals.

Let’s break it down: specific goals give you a clear target, like boosting your profit by 15%. They should be measurable so you know exactly how far you've come, like cutting costs by a certain percentage. 

Achievable goals keep things realistic, while relevant goals align with your business’s big picture. Finally, time-bound goals add a sense of urgency, pushing you to hit milestones, like improving customer retention in six months.

Here’s an example: "By the end of the next quarter, our small business aims to increase online sales by 20% through targeted social media advertising and improved website user experience." See how much more specific that is than “Improve sales”?

Some Example Goal Ideas for 2024

Sure, everyone and their business is different, and your goal planning should be tailored to what your company needs. But we still see some common threads as accountants across small business owners and their financial plans for the year, so let’s unpack them to give you some inspo.

Budgeting and Financial Planning

If you think your business went OTT on the expenses this year, embrace 2024 with a fresh perspective on budgeting and financial planning. Setting a goal to reduce unnecessary spending by 10% can streamline operations. 

Or, consider planning for a quarterly financial review to keep your business agile and responsive. Smart budgeting isn't just about cutting costs - it's also about squeezing the value from every pound spent.

Cash Flow Management

Found yourself wincing at your accounts more than once last year? 2024 is the year to master your cash flow. Aim to shorten your invoice payment terms to improve liquidity or set a goal to maintain a minimum cash reserve that covers three months of operating expenses. 

Efficient cash flow management is the lifeblood of a thriving business, so you're always ready for both opportunities and challenges. Getting the basics of cash flow management down now will help for years to come - all made easier with your friendly neighbourhood accountant, of course.

Tax Planning and Compliance

Tax planning and compliance can be your business's unsung hero in 2024. Set a goal to optimize tax benefits, maybe through more strategic asset purchases or by exploring relevant tax credits. Staying ahead of tax obligations keeps you compliant and positions your business for success in the long run.

Investing in Growth and Expansion

Let 2024 be the year your business reaches new heights. Set a bold yet attainable goal, like expanding your product line or entering a new market. Investing in growth requires careful planning but can lead to rewarding outcomes, and balancing risk with opportunity is key to sustainable expansion.

How We Can Help

Setting precise financial goals for the year ahead is your roadmap to success. Embrace these strategies to navigate the year with confidence and clarity. Ready to transform your financial journey? Contact us today for expert guidance and support in making your financial resolutions a reality. Let's make 2024 your business's best year yet.