by Stephen Reed | Business Consulting, News, Professional Services
Experiencing business growth is always exciting for an entrepreneur, but periods of growth aren’t always continuous given that every business has ups and downs. Implement growth strategies with the tips below to help your business become more sustainably profitable over time.
Define the Purpose of Your Business
A clear purpose propels growth, profit, and sustainable success, but business owners must regularly review their objectives to be sure that they’re still serving the company in an authentic way. Does your purpose still prompt strong engagement within the company as well as with clients? Does it still lend itself to focus, drive, and innovation? A genuine and straightforward vision helps both entrepreneurs and team members to create valuable and original products and services.
Maximize Operational Efficiency
Delegate, delegate, delegate. Transferring tasks and projects to qualified employees saves you time by removing the burden of smaller duties from your proverbial plate, which allows you to focus on larger aspects of running a business. Relinquishing some of this control also allows you to move into a business leadership and visionary position at a macro level rather than spinning your wheels at the micro level just to keep the business afloat.
Build Your Brand
Your business can grow by leaps and bounds when you develop a reputable and reliable brand. A well-considered brand will help you stand out among competitors and stay fresh in the minds of both new and potential customers. However much of your budget you can allot to marketing, make sure you pin point your target audience, connect with your audience in an authentic way, and keep your messaging concise, simple, and inspiring.
Cultivate Customer Loyalty
A vital factor of business growth and sustainability is your company’s ability to keep repeat customers. Not only does establishing client loyalty help to bolster sales, it also spurs word-of-mouth testimonies that will bring in more business. Be sure to implement expectations within your hiring, training, and review processes that will strengthen your company’s relationship with customers. Keeping in touch with clients and asking their opinions will also help to ensure repeat business.
Be Attentive to Budgeting
Maintaining a budget keeps unnecessary expenses at bay and necessary expenses within financial means. Additionally, acute awareness of your company’s funds means that you know how much can be spent on marketing, technology, new product, new hires, etc. in any quarter or season. Let your budget slip and you risk delving into debt, which will only slow the long-term growth of your business.
Embrace Change
Businesses can grow under the guidance of flexible and adaptive leaders who are willing to embrace new methods and processes, new technology, new industry standards, etc. All businesses unavoidably experience seasons of growing pains, but how you as an entrepreneur approach those seasons makes all the difference. You can continue to do the things the way you’ve always done them and risk a stagnant business, or you can embrace change and move your business forward.
by Pete McAllister | Accounting News, Estate Planning - Individual, News, Resources, Retirement, Tax, Tax Planning - Individual
Even those of us who have the best intentions with our money can fall victim to bad financial habits, which can cause unnecessary stress and anxiety. Some of the most common bad habits we fall into include:
- Impulse spending
- Not budgeting (or not sticking to a budget)
- Spending more than you earn
- Relying on credit cards
- Falling into the trap of convenience
Breaking bad financial habits takes time, intention, and effort. Below are some ideas for starting better habits to get your money to work for you.
Start an Emergency Savings Account
This isn’t anything you haven’t been told before, but if you want to quit the cycle of credit card debt, you’re going to need a savings account to fall back on in times of financial hardship or unforeseen costs. Start with a goal of saving $1,000 specifically for emergencies, so next time your car needs work, for example, you’ll have the funds to pay for it rather than sinking farther into credit card debt.
Budget
Nothing says “taking control of my money” like creating a budget that works for you. When you assign a purpose to every dollar, not only are you actively monitoring your income and spending habits, but you’re avoiding debt and reaching your financial goals more quickly. The trick is sticking to it. It’s important to track your spending monthly, and revisit your budget at the beginning of each month, adjusting as needed with the goal of spending less than you bring in. If you know you have a bigger expense coming up later that month, or even in a few months, you’ll have a big picture of your finances and you can begin to make a plan for saving. You can also decide what your priorities will be for that month, and start saving toward your goals.
Make a Plan to Get Out of Debt
Credit cards, student loans, and car payments eat into your budget, and limit the amount of money you can put toward retirement and other financial goals. In short, debt limits your choices.
One popular and time-tested method of getting out of debt is often referred to as the snowball method. You start by paying off the smallest debt, then once that’s paid off, you add that monthly payment toward the next smallest debt until that one’s paid off. For example, if your smallest debt is a doctor bill for $200 and you make arrangements to pay $50 per month until it’s paid off, for the next four months you’ll pay that $50 to your doctor’s office while paying the minimum on every other debt. Once the doctor bill is paid in full, you add that $50 to the monthly payment of your next smallest debt while continuing to pay the minimum on your other larger debts. As each debt is paid off, you’re adding more to the next debt and building momentum until even your largest debt is paid off.
Save for the Future and Start Investing
Once you set up an emergency savings account and pay off your debt, you can begin to save more aggressively. The first step is to bulk up your emergency savings fund to the equivalent of six months of living expenses so you’ll have something to fall back on in case of a major unexpected life event, such as a job loss. Once this is accomplished, you can grow your wealth by investing your money. You’ll need to work with a financial planner to help advise you in investments and diversify your portfolio.
Stay Focused
It’s easy to get off track and lose focus when paying off debt, keeping on track with your budget, and saving for the future, so it helps to have some goals in mind. Whether your goals include a vacation home on a tropical island, paying for you child’s college education, or achieving early retirement (or maybe all three), keep these goals at the forefront of your mind whenever you lose steam. You can even create a vision board and put it someplace where you’ll see it every day, reminding you that good financial habits will pay off in the end.
If you have questions on setting healthy financial goals or would like to discuss your 2019 tax return, please feel free to email me at [email protected] or call 317.549.3091.
by Jean Miller | Estate Planning - Individual, News, Retirement, Tax, Tax Consulting, Tax Planning, Tax Planning - Individual
Many older generations believe millennials to be poor budgeters and decision makers who don’t consider, or care to consider, their financial futures beyond tomorrow’s trip to get Thai food. While that may be the case for a select number of those under 35, millennials do not have to ascribe to this stereotype and, even on a limited budget, can begin saving for their futures. Below are some helpful tips for getting your money organized and putting some away for your future, even on the tightest of budgets.
- Budget, budget, budget – One thing is for certain, while all millennials may not be financially incompetent, they are almost all technologically adept. And in today’s world, it’s simple to track your spending and stop living paycheck to paycheck, right from your smartphone. Whether you track your funds and spending on your bank’s app, or use an outside app as a budgeting tool, it’s vital to consider what’s coming in, what’s going out, and what habits you can change to have more to set aside.
- Pay yourself first – Unfortunately, this doesn’t mean every payday you get to go buy a new shirt or gadget. Rather, every paycheck, set aside a small percentage (5%) for an emergency fund and another 10% for a retirement fund. If your company offers a retirement fund and matching contributions, it is absolutely vital to contribute, even if the funds only amount to 3% of your annual salary. If you don’t have a 401(k) option, consider opening a Roth IRA and begin saving on your own. Even setting aside an amount as small as $25 a month can mean thousands for your future, if you stay diligent.
- Talk about your finances – Whether you’re married or single, find someone you trust to discuss your finances with who can keep you accountable. This could mean you and your spouse regularly keep track of your spending and cash flow, reminding each other when slips occur, or it could look like sitting down with a parent, friend or outside source whose financial acumen you admire, asking for help/accountability. Having someone to remind you of your goals, pushing you to stay on track, will always prove beneficial.
- Steer clear of the “lifestyle” shift – For many, a new job or a raise might make them think they’ve “earned” a bigger apartment, or can put more in their vacation or entertainment funds. While rewarding yourself is healthy now and again, rather than sending that extra cash straight out the door, consider creating a S.M.A.R.T financial goal (specific, measurable, achievable, relevant and time bound), and begin putting funds aside to save for that goal. So whether it’s saving for your first house, buying a new car or just adding more to your retirement fund, don’t jump right in when finances increase, plan and save with clear goals in mind.
Budgeting well and saving is process that takes commitment and continuity, but with proper tracking and monitoring, and some strong accountability, anyone can achieve their financial goals and begin putting money away for the future.
