Fiscal fitness is always a concern of small business owners on Long Island, yet it is a subject that can easily get pushed to the side when conducting day-to-day business, or when other challenges appear. Whether you have just started on your business journey or it’s been years in the making, being financially sound is the only way your business will survive in this temperamental environment where fickle customers, encroaching AI and strong competitors test you every day.
There are a host of questions that fall under the umbrella of “is your business fiscally fit?” You should make it a habit to review these on a regular, scheduled time period so that you maintain a realistic long term view of your assets and can quickly course correct when you see any potential monetary problems looming.
Questions to Ask Yourself
- Do you have a consistent influx of earnings each month? Does your cash flow vary by season?
- Having emergency cash on hand is a necessity. Do you have at least two – three months worth of revenue put aside in the event your business runs into unforeseen circumstances (a fire or flood are just a few examples)
- Is there a quick succession plan in place should you suddenly become ill or unable to work for a period of time?
- You may have adequate insurance plans in place, but have your coverage needs changed due to an increase in staff, new equipment or other improvements you have made?
- Do you regularly seek counsel from a financial advisor or your accountant to make sure that you are keeping up with any investments you are making and paying estimated taxes on time to avoid costly penalties?
- Are you consistently monitoring your staff payroll and benefits costs and making regular adjustments in your budget to cover increases and rising coverage costs?
Playing The Long Game
When in the process of trying to grow your business, it’s even harder to keep a sharp eye on your finances. You may be weighing the cost of improvements, while balancing the current needs of your company. Sometimes it’s very tempting to make some short term investments, but you should never overlook the potential long term damage should something go wrong.
Fostering an entrepreneurial mindset is what made your business thrive in the first place, so it’s crucial to keep re-visiting the goals you set to remind you of where you are versus where you want to be.
Resources For You
Hello Alice offers a website that offers small business owners a variety of tools to create a personalized small business growth plan that positions your company for success now and in the future. They offer a five-minute business health check-in detailed below that will “help you see how far you’ve come and what you should focus on next! It’s like a GPS for your entrepreneurial journey.”
Is It Time To Check?
Measure Your Health Score
“See how banks, creditors, investors, partners, contractors and more view the health of your business”
Improve Your Health Score
“Gain access to step-by-step, personalized frameworks designed to optimize the health of your business”
Get rewarded for growth
“Unlock grants, discounts, experiences and other opportunities along your journey.
Times Are Rapidly Changing The Way We Work
In addition to responsibly managing your finances, it’s also time to question where your expenses can be cut or even re-directed to make your company more profitable. It might feel like a luxury to set aside time for re-imaging how your company is run, but it could potentially save you thousands of dollars or even enable you to re-distribute your current cash flow.
- Do you need to change how you are marketing your value to your customers?
- Are you leveraging social media the right way to tell your customers your brand value proposition?
- Do you know how to defend and communicate the perceived value of your products or services?
- Have you examined in detail what your competitors might be doing differently in the marketplace?
- Do you have a pulse on how current and prospective customers view your business?
- Explored how the use of AI could make your business run more efficiently?
Small businesses are the background of our country and the engines that single handedly keep our small town centers thriving. Staying on top of your finances while also meeting other budgetary goals on a regular basis will help to keep your company in tip top fiscal shape and just as importantly, give you peace of mind.
