Most of us have had at least one year on this earth where everything just sort of clicked. For some, it might have been senior year of high school. Others hit their stride in college, balancing coursework and parties with the dexterity of a pro. Perhaps for you it was after college, when you experienced your first big entrepreneurial success.
The thing is, we sometimes look back at those bygone days as though our apex is in the rearview mirror. Nope. It doesn’t have to be. If we keep swinging the bat with power and purpose, we’re bound to hit another home run.
So here’s an idea: rather than trying to replicate that one epic year in high school when you landed the lead role in the play, scored the winning goal in the state soccer tournament, and endlessly made out with your crush beneath the bleachers, why not focus on an area of your business that you’d like to achieve some magic with? And there are few places that are better to start than with your finances.
Get the lay of the land
In order to effectively find areas for financial improvement, you’ll need to take an extra-close look at your business. Start with a comprehensive review, identifying areas for refinement and opportunities for added investments.
Just as the key ingredient in all delicious food is butter, the crucial element for improving your business finances will always be data.
Collect on every IOU
If you’re like most business owners, you have many clients and customers who owe you money. Some folks may have innocently forgotten to pay you, while others are repeat offenders who are strategically avoiding you.
Whatever the situation, following up on unpaid and overdue invoices is a great way to shore up your finances and start the year strong. It’s reported that U.S. small businesses are owed more than $800 billion in total unpaid invoices. That’s about $80,000 due to each of America’s small business, which could go a long way in improving financial health for individual business owners and our economy at large.
Look for little savings
Whether it’s your monthly Internet bill, the amount you’re paying on envelopes, or the temperature you’re keeping the thermostat, there are numerous small areas that can be streamlined to help you save a few bucks. These modest savings will add up and boost your bottom line.
The key is to approach your business expenses with the scrutinizing eye of an accountant. Don’t assume an expense is acceptable just because you’ve paid it for a long time. Every expense must pass muster. And if it doesn’t, find a better option.
By treating your business with the same tenacity you would use while cleaning out an overloaded sock drawer, you’ll put yourself in prime position for a financial year that’s truly worth writing home about.