A new year is always a time for reflection, to look back and then forward. In both your personal life and your business, it’s a time to decide what you want to bring with you into this year and what you want to leave behind, what new things you want to try, and the goals you’d like to achieve. For businesses, this includes strategic financial planning. In this article, we’ll walk you through the process of assessing and realigning your financial strategies for growth and stability in the new year.
Update Your Business Plan
A new year is a great time to review and update your business plan, especially if you haven’t looked at it in over a year. Consider the following:
- Evaluate the past year’s achievements and challenges.
- Set realistic, measurable goals based on market analysis.
- Look at what your competitors are doing and ask yourself if anything needs to change with your business.
- Research new market trends you could incorporate.
- Brainstorm new products or services you could offer.
- Strategize about how to adapt to emerging technologies and consumer trends such as AI.
- Remember that prioritizing excellent service and products over low costs usually leads to brand loyalty.
- Integrate sustainability practices into your operations. For groups of consumers who choose brands based on environmental concerns, advertising your sustainable practices can help build trust and loyalty.
- Invest in improving digital support systems, such as enhancing the quality of digital customer service. These kinds of efforts can significantly boost customer satisfaction and loyalty.
Review Your Cash Flow
Along with updating your business plan, it’s a good time to analyze the financial health of your company and make any needed adjustments.
- Review income and expenses to identify financial strengths and weaknesses.
- Forecast future cash flow based on current trends.
- Implement efficient cash flow strategies.
- Utilize budgeting tools and software such as Google Sheets, Tesorio, and Kolleno for better financial management.
- Develop contingency plans for unexpected expenses and open a high interest business savings account for your business emergency fund.
Expand Charitable Giving
Launching a new charitable initiative can bring a variety of benefits to your company, not to mention the good it does in your community. Supporting local charities, sponsoring local events, and showing up to help with one-off things like clean-ups or days of service connects you to your community, an organic way to increase awareness of your business.
If you don’t have the capacity right now to launch a company-wide charitable endeavor, you could offer a certain amount of PTO for employees to use for volunteering. This is another way to make philanthropy part of your company culture. It could even boost employee morale and retention.
Another approach is to build partnerships with non-profits in your community–this could offer mutual branding opportunities for both of you.
Finally, be wary of gift card, website, and email scams that exploit generosity for fraudulent purposes.
Of course, charitable giving also comes with potential tax benefits. Talk to your accountant about maximizing tax deductions through strategic charitable donations.
Invest in Cybersecurity
Unfortunately, cybersecurity threats only seem to grow with every passing year. Whether your business, is small, medium, or large, you could become a target of cyber criminals. And it’s not just financial loss you need to worry about, but also damage to your reputation that can be very hard to undo. So, it’s important to prioritize data protection and stay ahead of cyber threats by taking the following steps:
- Conduct cybersecurity audits to identify vulnerabilities.
- Train staff on cybersecurity best practices. Make this an ongoing program, not just “one and done.”
- Regularly update cybersecurity policies and protocols.
- Invest in advanced security technologies and services.
Discuss Your Business Goals with a Relationship Banker
Your business banker isn’t just there to help you open a new account, send a wire transfer, or apply for a loan. We are a true partner who can help with strategic financial planning and customized banking solutions such as:
- Analyzing the financial products and services that align with your business goals.
- Receiving personalized advice on business growth and risk management.
- Assessing loan options, credit facilities, and investment opportunities.
- Tailoring banking services to fit specific business needs.
Meet our team of knowledgeable bankers ready to help your business succeed.
Let’s make 2024 your best year yet!
Which of these resolutions is on your list for 2024? Wherever you’re looking to improve, pivot, or grow, we can help. Kickstart your business’s financial success in the new year with Cogent Bank. Connect with us for expert banking solutions and personalized financial advice.
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The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.
