6 Financial Tips on How to Set Business Goals for 2023
With an uncertain economy, rising interest rates and a recession looming, there are several factors for business leaders to consider when setting goals and plans for 2023. Below, we share six financial tips for business leaders strategizing the new year.
1. Clear and Specific Objectives
Start by identifying key objectives, and then refine them to their simplest and most succinct form, according to an article in Firm of the Future. It can feel overwhelming and is often self-defeating to tackle everything at once. I like to think of it like traveling to a foreign country; you won’t be able to experience the whole thing, but with careful planning, you’ll get to experience the sites that are most important to you. Reflect and differentiate between what is important and valuable today.
2. Focus On Liquidity
With financial experts predicting a recession sometime in 2023, it’s critical that business leaders focus on liquidity by reducing expenses and conserving cash. Small businesses are particularly vulnerable during a recession due to the tendency to operate on tight budgets. Get lean on unnecessary costs, pump the brakes on expansion and hiring and consider restructuring outstanding debts or renegotiating lease payments.
3. Plan Your Income First
As a business leader, planning your income must come first. Leaders are only as successful as their income planning. Budgets, taxes and all other forms of financial planning in a business are dependent upon income. Plan your marketing, sales and delivery to perpetuate that income and then develop other forms of planning. Even if your business is successful, each year presents a new opportunity to further increase your income.
4. Build Up Your Customer Forecast
Q1 2023 has the most macroeconomic uncertainty, reports a recent article in Forbes Magazine. Talking to your customers now to get a handle on their plans and spending is vital. Formulate account plans at least 90 days in advance that factor in realistic data and goals and then updating plans with action steps is a must to stay in lock step with your clients’ business needs and goals. This will help avoid any unexpected surprises and lay the foundation for positive, realistic outcomes.
5. Update Your Toolbox with a Tech Stack
What financial solutions is your company using? Do these systems provide the real-time data and insights you need to make on-demand decisions? Using a single, cloud-based solution can reduce your technology overhead and manpower to help you withstand changing macroeconomic conditions and proactively help you control costs. According to Insightful Accountant, “Additionally, you must train all staff and clients on how to use the technology. When your tech stack is well-planned and integrates with existing systems in place, it will make tax season move along more fluidly.” To learn more about the benefits of implementing a Tech Stack, read our blog here.
6. Stay Attentive to Client Concerns
We are facing a lot of uncertainty in the marketplace, and business leaders must prepare for uncertain times. Communicate with your clients as a top priority. Let them know you care and are watching out for their best interest. Consider doing a holistic review of their business goals to help navigate any potential threats or opportunities for growth. For example, if they have a desire to change their filing from a Schedule C to an S Corp, take the initiative and ask them why. It does take a bit of training for both of you, but the insights that you’ll uncover can be a game-changer. You can read more about this filing consideration in our previous blog here.
In Conclusion
Now is the time to further build trust with your clients so they look to you for advice ahead of time rather than after the fact.
Achieving your business planning goals in the coming year may hinge on how you approach your financial responsibilities. As circumstances change and the economy becomes more known, it’s vital that you’re as realistic as possible and just as willing to adapt as you would be to grow. Be thoughtful with your decisions, especially if you want to avoid an economic hangover that might keep you tied up in knots in 2023.
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