New Year’s resolutions are a wonderful tradition that can set the tone for the year ahead. Families and friends often set New Year’s resolutions, but this practice can be especially helpful for business owners.
Since you already have business goals, take a moment to reflect on a few business resolutions to help you meet those goals in the year to come.
Here are some financial resolution ideas to get you started:
1. Track Expenses Every Day
Business owners do plenty of bookkeeping. But are you looking into your accounts every single day? If not, this upcoming year is a great time to start!
Monitoring your business account each day will help you track your expenses and adjust spending accordingly. More importantly, regularly logging into your online banking is one of the most effective ways to prevent identity theft.
Business identity theft is a lot like regular identity theft. Criminals steal the identity of a business and use it to open up lines of credit. When you monitor your accounts, you can find and report suspicious activity right away.
2. Find a Financial Institution that Meets Your Needs
You already have a financial institution for your business. Now let’s make sure you have the best one! Make a resolution to look into what financial institution works best for your business.
Look for a financial partner that doesn’t charge you a bunch of fees. Even small fees add up and can take away from your bottom line. Free services can also help you save money.
Great rates are another important thing to look for so you can save on interest with your business credit card or loan. And look for a place that offers strong returns on your deposits.
Don’t forget about things like community involvement. Since small businesses rely on communities for success, it makes sense to look for a financial institution that shares the same local values and community spirit.
3. Create Your Retirement Plan
Business owners don’t always have the typical retirement options that many employees have. When you’re your own boss, it’s your responsibility to not only make your business succeed today, but also plan for your future.
Opening a retirement account to start saving and earning interest for the future is a good first step. But you can also consider buying your commercial property to create a nest egg for the future.
Since property is an investment, when you buy instead of rent, you build equity. If your property value increases over time, you can potentially sell it in the future when you’re ready to retire.
4. Work on a Succession Plan
When you put your all into building a business, you’re often focused on the daily needs and immediate goals. But do you have a long-term plan for what to do with your business when you’re ready to retire?
Many business owners don’t have a succession plan to cover who will take over upon retirement or in the case of death or disability. This can be a difficult discussion to have, especially with businesses that have multiple owners.
Take this upcoming year to start creating your plan. It’s an important part of protecting what you worked so hard for.
Once you combine these easy New Year’s resolutions with your existing business goals, you’re ready to have a happy and successful New Year!