New Year's resolutions for business owners
More than 8 in 10 people plan to make New Year's resolutions, according to an Australian Management Institute survey. But vows to do better in 2020 don't have to be limited to personal goals like dropping five kilos or exercising three times a week. Consider making New Year's resolutions for your business.
First let's review what makes a good, achievable resolution. The science says the single best thing to do is to pick goals that you really want to meet - not ones you think you should want to meet. That's the main advice of Christie Aschwanden, lead science writer for the data journalism site FiveThirtyEight.com, after reviewing the current literature. This dynamic should help you in choosing meaningful goals that make a difference for your enterprise.
It also matters how you express your goal. As a business owner, you've likely heard that making goals SMART increases your chances of success. Here's a quick review, courtesy of two Sydney businesses: Forest Accountability, a CPA firm, and Wise Up Marketing, a marketing agency focusing on SMEs. Make sure your goals are:
- Specific: Don't resolve to improve sales. Resolve to increase sales by 20 per cent in the 12 months of 2020.
- Measurable: "If you can't measure it, you can't manage it," as Forest Accountability puts it.
- Attainable: Don't set them so high that you and your employees become demotivated. Make them a stretch, but not impossible.
- Realistic: Wise Up Marketing recommends breaking long-term goals into shorter-term goals supported by objectives that let you know you're making progress. For instance, boosting customer loyalty by 25 per cent by Dec. 31, 2020 is an objective supporting the long-term goal of being the top Australian company in your industry.
- Timely: Setting a time limit gives urgency to your goal. Failing to set a deadline can make the commitment seem too vague.
OK, with those best practices in mind, here are a few 2020 resolutions to consider:
Improve cash flow
Who doesn't want better cash flow? Of course you do. To get there, set a specific goal. For instance, if you have just three months of operating expenses on hand, commit to increasing that to six months in 2020. Debtor finance offers a scalable way to achieve this goal. Unlock a portion of your outstanding or unpaid invoices to grow your operations without waiting to be paid by your customers. This lets you turn invoices into cash-on-hand.
Invest in game-changing equipment
Resolving to finally take the plunge on equipment that will give you an advantage over your competition doesn't have to mean stockpiling money for a lump-sum capital expenditure. By financing your equipment you can set regularly monthly payments instead. At Classic Funding Group, we offer a fast application process and same-day settlement so you can put that equipment to work as soon as possible.
Whatever goals you pick for your business in 2020, Classic Funding Group are here with the financial solutions to help you reach them.