6 Steps to Ensure That Your Business is Financially Fit and Healthy

As a business owner, you are probably always looking for ways to increase revenue. But what about ensuring that your company is financially fit and healthy? While it may seem like the two are mutually exclusive, they are not. In this post we'll share six simple tips that will help ensure that your company is in tip-top financial shape.

#1 - Set a Goal

 Ask any personal trainer if it's a good idea to set fitness goals and they'll respond with an emphatic "yes!"

The same rings true for your business' financial fitness. Setting goals is a great way to ensure that you're on track for success.

Remember that your goals should be SMART: Specific, Measurable, Achievable, Relevant and Time-based.

For example:

• Reduce expenses by 5% by the end of Q1

• Set aside enough capital to open a second location within three years

• Hire a full-time marketing manager by the end of Q3

#2 - Create a Plan to Achieve Your Goals

 Once you've set your goals, it's time to create a plan for achieving them.

If your goal is to reduce expenses by five percent by the end of Q1, then list out specific areas that are ripe for improvement and identify potential solutions. For example:

• Reduce postage expenditure by implementing an online postage system

• Implement a more efficient way to track inventory

• Create new systems to increase productivity

• Increase hybrid working hours

• Relocate to a smaller office space

  #3 - Track Your Progress

  Just as runners track their miles on their Garmin watches or weight lifters keep a log of their sets and reps each session, business owners should keep track of their data in order to track progress and identify trends. However, instead of a smartwatch or phone app, business owners should opt for a cloud accounting system like Xero.

  This gives you greater financial visibility and anytime, anywhere access to all of the numbers that matter. It also makes it easy to track your invoices and transactions, and get a handle on your cash flow. Plus, also be enable you to visualise data, which can help you to identify problems and opportunities that might otherwise go undetected.

  #4 - Prioritise Cash Flow

  Cash flow is one of the most important aspects of a healthy business. If you don't have enough cash to pay your employees, suppliers and other bills then it doesn't matter how much revenue you're bringing in - your bottom line will be negative every month. 

   

  Cash Flow is imperative to the financial health of your business.

  We have a great Cash Flow Tracking System available on our website. Check them out here

   

  #5 - Hire a Consultant/Advisor/Accountant

  Just as fitness fanatics hire personal trainers, business owners need the guidance of a quality consultant/advisor/accountant.

  A great consultant/advisor/accountant will allow you to tackle the particular problems and pitfalls of your industry using a proven method for success. They will point out where there is room for improvement and identify opportunities for growth that you may have missed.