A new year is a new chance to get your business’s finances back on track. Financial forecasting isn’t always easy, but it’s an integral part of managing revenue and expenses throughout the year. Use these tips to make sure that you have the funding necessary to keep your business running smoothly:
1. Create financial goals
First, it’s important to determine what financial goals you’d like to meet in 2016. This should include both immediate goals, like paying off debts, and long-term goals, such as expanding a product line.
2. Figure out your risks
No matter your goals, you’re going to face risks. These risks have the potential to impact your business’s bottom line. Define them at the start of the year to more accurately plan for your company’s fiscal future.
3. Overestimate all expenses
Does your business function on a project-to-project basis? If so, you already understand that every deal is different. The variety can make work more interesting, but it also makes budgeting difficult. Always budget a bit above your anticipated expenses to ensure you’re prepared.
4. Cut costs
Debt can hamper business growth and development, so reduce costs wherever possible. If you don’t know where to start, make a list and prioritize in order of interest rate or payoff date. Every time you pay off a debt, put the payment amount into your next one.
5. Revisit occasionally
It’s great to create an annual budget, but don’t hesitate to review and revise periodically. For small businesses in particular, it can be difficult to predict expenses and revenue. Revisit your budget every two months or so to make adjustments as needed.
Unfortunately, life happens — even in business. If your budget veers off course, you can count on the experts of RMP Capital for creative funding services that allow you to effectively run and grow your business while we handle speeding up your cash flow. To learn more, give us a call at 631.738.0047.