It’s that time of the year when businesses take a long, hard look at their accounts and evaluate the success of the financial year that is ending. The transition from one financial year to another offers a good opportunity to reflect and, more importantly, to plan ahead so that your business continues to flourish.
So how can you better set financial goals and objectives for your business?
What are some ways to improve the financial management of your business?
An important yet often overlooked process, setting financial goals and objectives for your business can be challenging, especially if you don’t consider yourself a numbers person.
But the truth is that setting financial goals often has very little to do with numbers.
Mapping out a trajectory for your finances requires you to think about why you are in the game in the first place. So it’s as simple as asking yourself this: why are you in business? For some, there is a clear answer. For others, the answer may not be so immediately apparent. Asking yourself this fundamental question, though, allows you to gain a better understanding of your personal and professional goals as a businesswoman, and how these may have evolved since starting up.
It is therefore important to understand that all businesses have different objectives and expectations. Some people start their business as a lifestyle choice, wanting to earn income along the way. Others prefer not to work the standard nine-to-five hours, Monday to Friday, and want to be their own boss. And then there are those who establish their business to eventually be in a position to sell it in the future. Asking yourself why you’re in business in the first place challenges you to consider what you’re getting out of it, as well as the direction you want it to go in.
This simple act of self-reflection will then allow you to then ask yourself: how can I get the numbers to make that happen?
This post is based on the HerBusiness Network’s Small Business Finance Course, a three-part online course designed to arm small business owners with the skills to better manage their small business finances. For details of upcoming courses, call us on 1300 720 120 or visit the upcoming events page on our website.
