Financial Resolutions for 2020

It is so easy to start a new year with a power-packed list of resolutions, that come February will find itself in the bottom of your trash can. For you and for your small business, create a list of financial resolutions that you can really stick to. Let this list make 2020 be your most successful year yet! 

Let's shake up the beginning of this new year with a set of resolutions that you can really and truly stick to. New Year's resolutions aren't just for dieting and working out. They can be utilized to give your finances a boost. It's a new decade and it's an exciting time for you and your small business. This new year doesn't have to be a burden for you or your company. Take 2020 and turn it on its head by beating it to the finish line with resolutions you can be proud of! Keep in mind too, that even though these resolutions have been specifically picked for your company to thrive, you can also apply them to your personal life. Let's get going! 

• Add a Month to your Emergency Fund 

Most American's and many small businesses don't have a rainy day fund for when things get hard or when business isn't booming. Not having a rainy day fund is essentially putting your company at risk for a financial catastrophe. It is recommended to build a fund that has between 12-18 months' worth of operating costs. Don't put your company and everything in your life on hold to make this goal happen overnight. Remember, this is a resolution. It will take time to reach this goal. Even though it won't happen by January 1 or even February 1 of this new year, continue to make it a priority as you plan out your fiscal year and your budget for 2020. 

• Create a Reasonable Budget 

Speaking of creating a budget, resolution number two is creating a reasonable budget that you can maintain in reality and stick to all year long. It is always great to dream but begin with reality so you can build your dreams on top of that. Avoid credit card debt and limit your spending on credit cards to exactly what you're budgeting for them. Remember how damaging missed payments and poor credit scores can be to the future of your small business and your finances. It can halt the growth of your business and keep it from expanding until you deal with it. This will cause you to lose precious work time and money spent on recovering from these poor actions. 

• Security Care

It's time, if you haven't already, to invest in excellent security care. The number of internet leaks and hacks of both personal and professional information in 2019 alone was terrifying. This has lead to the destruction of huge companies, the loss of loyal customers, and a fear that is all too real for the company and client alike. No matter the size of your company, you need to be prepared. Back up your data regularly. Create a very strong firewall to keep out intruders. Invest in the best security, optimize the safest web browsers, and use the best operating systems. Protect your companies money and information that you have worked so hard to build. 

• The Long Term 

Take the time to determine your long term financial goals. It's easy to get caught up in what your current financial status is and what your budget is for the current quarter. But what is your long term goal? Knowing and understanding this is just as important as setting your yearly goal and budget. Your yearly goals should be determined by where you want to go and where you want to end up. This can include how much you want the company to make, how much you want your employees to make, how much you want to give in retirement, benefits, HSA's, how much it will cost to grow your physical office space, how much it will cost to hire more employees, and how much it will cost to create more products. The options are staggering, but if you have a long term goal to work towards, it will be a much easier path to walk. 

• Clean It Out

As painful as it can be, sometimes cleaning out the cobwebs throughout your company can help your finances more than you think. Getting rid of the unnecessary things and really "trimming the fat" can cut down production and operating costs very quickly. Every company can streamline operations and cut back to save money. As much as you want to keep every employee on board, the cost of labor is going to continue to rise for the foreseeable future. Overstaffing becomes very costly very quickly. Make sure you are properly staffed during busy and slow seasons. Also, continue to review your vendor pricing. There is nothing wrong with looking around and checking out the competition. Always stay on top of technology that can cut costs for your company too. Going paperless is one of the most popular ways to save money right away. 

This won't be the easiest list of resolutions to follow, but the important ones never are. We can guarantee that each one of these is worth sticking to and the will help you and your company in the long run! Cheers to 2020!