When you own a small business, April showers signal the close of the year’s first quarter – and the opportunity to empower yourself to do a little bit of spring cleaning around the office.
And we don’t just mean decluttering the shelves and throwing out old supplies.
Now is the right time to dust off your business plan to evaluate and consider the state of your business. What strategies worked or didn’t work? Are there campaigns that need a little extra push in the second quarter? Do your finances need some TLC as your small business grows – not just into the coming months, but into a bigger company, as well?
Take some time this month to examine your business plan to ensure your team and company are ready for what’s to come. We’ve got a quick five tips to get you started:
Refer to Your Budget
Your Business may be blooming – but your budget shouldn’t be sprouting any unexpected additions. As a financial roadmap, it remains the easiest way to track your finances. That means little or no changes should be made to the plan throughout the year. Instead, use this year’s budget, this year’s performance and last year’s data to gauge where your financial standing is. You can then use the information to determine if changes should be made to your overall business plan for the coming year.
Deep Clean Your Records
Chances are, you’ve got a mountain of old files and undigitized receipts that could do with some tidying.
Take a day – or a week – to really dive into your records, especially your accounting books. This includes reviewing and organizing all of your documents, ranging from outdated paperwork to bank statements. After you’ve finished spring cleaning your records, be mindful of your new system to help you maintain order throughout the rest of the year.
Your financial records, just like your budget, help you forecast what’s to come. They can also help you from making any ‘green’ mistakes that might come with being a new small business owner.
Examine Your Cash Flow
Business finances, just like our personal accounts, have a way of getting away from us. We often think knowing our cash flow sounds easy, but that’s not always the case – especially as small expenses add up or unexpected bills come in.
Cash flow, however, is paramount to the survival of small businesses. Sit down this month to examine your invoices and expenses, ensure your credits are on track to be paid. Double-check your debt-to-income ratio. Keeping this at a manageable figure allows your business to keep doing what it does best: serving your customers.
Separate Your Business Finances
Separating your business expenses from personal expenditure is vital for reducing personal liability. By mastering the art of separating business and personal expenses, you are improving your trust and legitimacy with bankers and other financiers.
Whatever your small business is, we guarantee you’re an expert in your field. Keeping up-to-date on the inner workings of craft beer, house plants, home decor or even the food industry leaves little room for learning accounting, business law and finance.
Thankfully, you don’t have to.
A quick Google search reveals local companies in just about every niche that also cater to small enterprises – including Florida Capital Bank.
Our professionals, and others like us, are ready to help you organize your business by building a plan and system that works for you and your financial situation.
At Florida Capital Bank, you’ll find business advisors able to educate and counsel small business owners through major changes and decisions, providing options on business financing along the way.
Your business plan shouldn’t be collecting dust in the corner; instead, it should be a living document. The best plans shape and adapt to the flow of the economic client, expanding or consolidating when necessary.
As we prepare for warm weather and a busier season, take the time now to revisit the business plan you have for your company to make sure you’re ready for any changes to come.