A new decade is just around the corner.
While the new year brings some uncertainty — the presidential election, the U.S.-China trade war and rising taxes — according to research done by different financial institutions across the country, the majority of business owners have a positive outlook for what’s to come.
Are you ready for 2020?
2019 vs. 2020: Accomplished Goals, Setting New Ones
As you recap on your business’s performance in 2019, you’re bound to find some areas for improvement.
Don’t regard underperformance as something negative. It’s an opportunity to learn from unmet goals that could’ve been done differently to ensure more practical use of time and resources. Make sure to thoroughly understand your financial statements including profit and loss, balance sheet, and cash flows to understand where you’re coming from.
Pay attention to your expenses and income when you draft your projected cash flow for 2020. Staying on top of when and how often your money comes in and managing where it goes, is the best way to keep cash flowing, grow your business, and prepare for unexpected expenses. Often, we get clients who weren’t financially ready for an emergency.
Once you’ve identified what tactics are working, use them as guidelines to map out a plan to execute in the new year.
Set realistic and attainable goals that relate to your business and help you grow in your industry. Keep track of your progress and success by setting deadlines and regrouping once they’re met.
Above all, be flexible. The ability to adapt to the adversity of obstacles is crucial to achieving your goals and succeeding in the new year.
Did you know the success of your business is a vital part of the U.S. economy? Here’s how your business will contribute in 2020.
Your Business Stimulates the U.S. Economy
According to the Small Business Administration (SBA), small business owners — businesses with 500 employees or less — represent 99.9% of all U.S. businesses, and they continue to be “incubators of innovation and employment growth.”
Your business contributes to the local economy by providing employment opportunities, and encouraging people to spend, which puts money back into the economy. You have the advantage of being customer-oriented and understanding the needs of your community, which allows you to adapt and respond to economic changes. Your customers’ loyalty will help you stay afloat during an economic crisis, which in turn will strengthen the local economy. It’s a delicate cycle, and your business will play a crucial role in its development come the new year.
But even with a new set of goals and a detailed plan to follow in 2020, it’s understandable if you’re hesitant; significant events may affect business owners in the new year.
3 Major Events Depend on the 2020 Presidential Election
According to Capital One Small Business Growth Index, 65% of business owners believe the 2020 presidential election will impact their business. The survey also showed taxes, competition and new technology as main concerns.
Pay attention to the candidates’ stance on the tax code and business regulations, changes may directly affect your business. The success of your business depends on you staying informed about changes to the tax code, tariffs and regulations.
Focus on the quality of your product and customer satisfaction to keep up with competition. Make sure you invest in your staff; they are the mediator between your product and your customers. A happy team means happy clients, and in turn, happy return of investment (ROI). Your ROI is a crucial metric for your business. Strengthen it by being aware of the tactics that retain existing customers and converts them into loyal buyers. There will be times where making your loyal customers happy weighs over gaining new customers, and that’s a decision you can make based on your ROI performance. This metric will be crucial in the new year because customers may be more reluctant to spend as the presidential election approaches.
The final concern for business owners is technology. It can be overwhelming to see the vast extent of the technology available. Making new implementations will benefit your business, but you don’t have to acquire every piece of technology you learn about. Determine what type of technology will be most helpful to your business’s growth. That way, you won’t make unnecessary expenses that could put you in a financial predicament in the future. Find technology that will help you improve customer satisfaction and ROI.
Embrace the new decade with determination, enthusiasm and positivity. Focus on tactics that will help you stay on top of your expenses, strengthen customer satisfaction, and increase your return of investment. By doing so, you’ll overcome any obstacles the new year brings.
At Evolution Capital Group, we’re committed to help you grow your business. We’ve helped many merchants by auditing financials and creating a plan for the future. Don’t hesitate to contact us for a free consultation in 2020.
Evolution Capital Group