Every year many of us return to the office after Christmas and discuss what New Year’s resolutions we have decided to set ourselves; perhaps it is getting fit, going vegetarian or squirrelling a little extra money away in your savings.
Of course, inevitably, life can get in the way and it is easy to give up on or accidentally renege on those promises we make.
If you are a business owner, your goal for the year ahead (amongst other things, perhaps) is likely for your business to flourish and thrive.
What exactly this looks like, will be different for every business; success isn’t always denoted by ‘scaling’ and ‘growth’, but other times by building and maintaining resilience.
So, if you’re keen to make your business more resilient in 2022, we’ve come up with a few New Year’s resolutions that just might help you on your way.
Determine whether you need additional funding, and how you’ll obtain it
You may be lucky enough to be in a position whereby your business can continue to operate as normal, without the need for any additional funding, but if the converse is true you would be wise to proactively contemplate your options.
Although many of the Government-backed schemes are now closed, the Recovery Loan Scheme has been extended into 2022, offering much-needed support to small and medium-sized enterprises (SME).
The British Business Bank is also playing a part in managing many regional schemes for small businesses, so it is worth taking a look at its website here.
If you can’t secure funding from traditional lenders, such as banks, there are alternative finance options that you might want to consider. However, we would encourage you to seek professional advice beforehand, to ensure that the solution you’re inclined to opt for is right for your needs.
Improve data quality and use it to better care for your business’ financial health
It is very difficult to plan ahead or react to changes in the economy and wider business setting, without having a clear picture of your organisation’s financial health.
To make truly effective decisions about your business, you need to be able to rely upon and to access good quality data and information. You might already be using data to its fullest potential, within your operation, but if not, then where do you start?
Thankfully, there has perhaps never been a greater opportunity to learn more about your business through regular management accounts, supported by the latest cloud accounting technology, – which can also feed you information in real-time.
This, in turn, can help you to improve (and stop worrying so much) about your cash flow, to strengthen and automate your credit control systems, or to boost sales and reduce costs.
Revitalise your business plan
When was the last time you properly reviewed your business plan? If you haven’t done it in a while, or if you ended up making temporary changes to it during COVID-19, you should revisit it to make sure your objectives are correctly identified and that any strategies detailed within are aligned with these.
Take some time to review your operation and ask yourself what is proving to be profitable, what supports stable cash flow and where your weaknesses are.
Having answers to these questions should assist you with the formulation of a new business plan to cover the next 12 months. In addition, you should commit to continuing to review your business plan at regular intervals and, where necessary, act upon your findings.
Minimise your tax liabilities
Do you, or does your business, pay too much tax? Many taxpayers often pay more than they need to because they are not aware of the reliefs, allowances, or tax-saving opportunities available to them and, where they are aware, do not make full use of these.
Every year we surprise our clients by opening their eyes to tax planning opportunities, often saving them and their business thousands of pounds in the process.
Minimising your tax liabilities need not be a complex process, if you seek the support of your accountant or tax adviser, who can review your activities, taxable income and investments and establish a plan of action based on such an assessment.
Don’t be afraid to ask for help
Perhaps the most essential piece of advice we can offer, is to ask for help. You are not alone and there are always people who have the knowledge and experience to support you in your venture.
A small investment at the start of 2022, to secure the right professional advice and partnership, could see you well on your way to making your business more resilient and to enjoying a successful year.
To explore whether we could be the right fit for your business, contact us to arrange a consultation with one of our team in Bedfordshire, Hertfordshire or Cambridgeshire.
