If you’re like 49 percent of the business population, you’ll spend the first couple months of 2017 creating resolutions for your online organization. One of the top three resolutions each year is gaining control of finances. Most companies could benefit from spending a little less and saving a little more, but oftentimes financial success comes from being a little more specific.
Specifics are essential in making business resolutions. After all, only about eight percent of those who make resolutions at the beginning of the year keep them. Most lose momentum early on.
If you want to make financial resolutions that will have a powerful and long-lasting impact, look for specific and actionable goals. Here are some suggestions.
1. Cut Specific Monthly Costs
Choose areas of excess spending and reduce expenditures there. Most organizations know they’re overpaying for certain services, but finding a more affordable alternative isn’t a top priority. This year, highlight those expensive areas and seek more affordable alternatives or packages that can reduce your monthly costs.
For example, many small businesses pay for a warehouse for their inventory, even though they don’t use the whole space. To save money, companies could switch to a self-storage unit, which performs the same function, but costs much less in square footage and manpower. As you can see here, the cost for a unit is much smaller than a warehouse. As your company grows, you can expand your inventory storage, but there’s no need to overpay for space you won’t use this year.
2. Invest in Better Accounting Software
Without good accounting software, controlling finances is much more difficult. You need to find a quality program without overpaying.
Usually, choosing better and more affordable accounting software means switching to cloud-based tools. Rather than downloading an expensive platform, use an online ledger that will update across all systems.
Some of the highest recommended affordable cloud-based tools include:
- QuickBooks Online Simple Start
After you’ve set up your account, use the software to define areas of excess spending. The software can offer solutions for cutting costs and gaining more financial control.
3. Re-Invest Cash Flow
If you’re aiming for growth in your small business, re-investing your cash flow is a smart move. After you’ve paid yourself a livable wage, you can use the surplus to improve your business.
Improvements can enhance your growth and customer retention, and improving your website is one of the most important steps forward. According to research from Adobe, 39 percent of people will abandon a website if it loads slowly or the content/layout is unattractive.
Use some of your cash flow to update your site’s design and improve the copy. Spending the money on this may seem counterintuitive, but the result will be more engaged visitors and higher sales, returning your investment with interest.
4. Make Advertising More Effective
Too often, small business owners pour money into their internet marketing campaigns without properly measuring the effectiveness. It leads to wasted funds that can stall your marketing efforts.
Measuring advertising metrics allows your money to do the most good for your company. It shows you areas of success and what needs improvement, allowing you to pull out of a marketing tactic before you lose too much money.
According to the Content Marketing Institute, the six most important metrics to measure when determining the effectiveness of your marketing include:
- Unique visitors
- Page views
- Search engine traffic
- Bounce rate
- Conversion rate
- Inbound links
By channeling your funds to these metrics and using the data to determine the effectiveness of any ad campaign, you can easily recognize and fix spending issues.