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Five Game-Changing Financial Decisions to Make for Your Business in 2020

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2020 is approaching, which means it’s time for a new year and a new you! But the end of 2019 is bringing in something a little different — the start of a new decade. As we enter the 20s, we have the chance to start our business off on the right foot so that we get the financial boost we all need after a busy (and lazy) festive period. To help you begin this new business journey, we have listed five of our best tips for making these big financial steps, each of which will help you to boost your business, your brand, and your confidence as a leader.  

1. Set Concrete Goals

This may seem obvious and something you’ll be reminded about a lot — but it’s also very important! Without goals and a plan, your business has no structure and is a recipe for disaster! It’s the easiest way to end up broke, so before that happens, take some time to think about what you want to achieve over the next few years. Write it out and set realistic goals that are manageable and achievable. Stick to them and you’ll find that success is just around the corner. 

2. Don’t Be Afraid to Take Risks 

As they say — no risk, no reward. Taking risks is a part of business, and it can often result in excellent profits or new connections. Of course, not every risk ends up being worth it, but that’s the beauty of the situation. We have to take risks in order to achieve the next level for our businesses, and while some may cost you more than expected, others will yield you plenty of cash. Don’t be afraid. 

3. Track Every Penny

Spending is easy to do in excess both in our personal and business lives. A coffee here, a pack of envelopes there — while in the moment these expenses mean nothing, they definitely add up over time. Tracking your business expenses is one of the easiest ways to keep your finances on track and cut down unnecessary costs.

When you realize you’re spending way too much on individually printer cartridges, maybe plan ahead and buy them in bulk, saving you money. One pro tip: consider opening a separate account so that you have your own debit card for petty cash and day-to-day expenses. It’s pretty easy to open an online account without having to visit a branch! Just avoid a prepaid card as they usually have lots of fees and hidden charges.

4. Pay Yourself  

If you don’t take a wage, the excitement of having your own business stops being worth it. It’s an important financial decision because it rewards you for all the hard work that you’ve accomplished! You won’t always be able to give yourself a lot in the beginning, but even a tiny wage of a few bucks is better than nothing at all. No need for complete self-sacrifice — work that wage into your budget so that you have enough of an incentive to keep plugging along.

5. Remember — You’re Always Learning  

We should all strive to be lifelong learners, but especially if you’re a business owner. There’s a lot to understand about business finances: tax returns, stocks and bonds, investments, the list goes on, and it can become overwhelming. So every week you should set aside some time to better understand these money terms so that you can stay on top of the game. It will help you to make informed financial choices as well as budget your money and choose better investments. Keep learning, keep asking questions, stay humble, and you’ll stay on the right path. 

Hopefully these tips have given you the head start you need to start planning your 2020 finances. Business is not always an easy journey — which is what makes it so rewarding! You may have to take some risks and make a few cuts, but in the end, you won’t regret it. Ring in the new year feeling confident in your next steps and make sure you stick to your business plan. Happy planning!

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