Every new year is an excellent time to plan or revisit your short-term and long-term goals for your business. Business goals are undoubtedly critical, as they provide you with motivation, direction and a clear method for measuring your progress.
However, of the many different goals that you have, it could be difficult to determine which ones you should prioritize. That being said, start with your business finances. Whether you are a proud owner of a virtual office franchise, coffee shop or online retail store, here are vital short-term financial goals that you should focus on this year. But first, what are short-term goals?
Put simply, these are specific goals that you want to achieve in the next three, six or 12 months. These goals are extremely vital, as you would be hard pressed to find a route to where your business is currently at, to where you want it to be if you do not have goals.
Increase Revenue
It is necessary for every business to want to increase revenues. But in order to boost revenue in the short term, you need to try different tactics. For instance, if it has been some time since you have increased your prices, you can consider informing existing customers that you will be increasing your rates soon and raising prices for new customers.
When dealing with existing customers, there’s a risk that they might find another business that offers better pricing, so try to establish first how strong your relationship is with them and whether or not they’ll still do business with you if you increase your rates. You could likewise invest more into your marketing efforts to boost sales, hire more salespeople to work more territories, amp up your social media strategy, or offer existing customers some incentives to do more business with you.
Improve and Keep Track of Your Business Credit
The first thing to know with business credit is that it is different from your personal credit score. With that said, a high business credit score will help make certain that you will be eligible for reduced interest rates in the event that you need to obtain a line of credit for your business or a loan. To increase your business credit score, keep your debt-to-credit ratio on the lower end, open credit accounts with suppliers and vendors, and always pay your bills on time.
Make sure that you have a separate account for your business and do not use your personal account for business transactions, and vice versa. Get in the habit of monitoring your business’ credit report because any error can lower your credit score.
Financial goals could be small, big, far or near, but regardless of your goal, ensure that you take the necessary steps to accomplish them all. And while you must focus on your specific financial goals, it is important that you learn to adjust, as your goals might change or shift over time. Take everything day by day and just keep moving forward until you achieve them.