This year, let’s resolve to work smarter, not harder, especially regarding your business. How do reliable cash flow, increased capital, and a rainy day strategy for your company sound? This may seem ambitious, but you may be surprised by the impact realistic goals and adjustments to your business can have on your cash flow and growth this year. This blog post will explore goal setting and share simple yet powerful strategies you can implement to ease your cash flow challenges while supporting your ability to scale. 

Set SMART Growth Goals

First things first, you must get clear about what you want to achieve. For example, do you want to expand to another location, explore new technology, or launch a new product? You may want enough cash on hand to manage the unexpected or to capitalize on a timely investment opportunity. The SMART method simplifies establishing goals and encourages sticking to them. You can get started by asking yourself if the goal is:

  • Specific. Instead of vague goals such as, “I want to increase my revenue,” go in-depth with exact metrics such as, “I want to increase revenue by 20% by the end of the year.”
  • Measurable. Keep yourself accountable by determining how you will track your progress and measure completion.
  • Achievable. The sweet spot in goal setting and avoiding burnout is to make your objective challenging and realistic enough that it’s impactful and attainable, e.g., a 20% annual revenue increase is more practical than a 70% increase yet still considerable.
  • Relevant. Set goals that will directly benefit your business and contribute to its success.
  • Timebound. Set a realistic timeframe for completing the goal and break down larger goals into manageable quarterly or monthly targets for a more achievable roadmap.

Be sure to check in on your progress frequently to keep your goals at the forefront and reassess as necessary. With your goals in mind, let’s explore how to tap into capital and free up resources to achieve your goals.

Make Business Adjustments to Increase Cash Flow

  • Hire an accountant or explore tracking tools: Ditch the guesswork this year and invest in a professional’s guidance or tracking software that gives you a clear picture of your cash flow. While an investment, the insights gained through projections and analyzing patterns can help you anticipate your cash flow needs, identify potential problems, proactively plan for contingencies, and save money in the long run.
  • Shop around for better rates: It’s always beneficial to explore renegotiating rates or asking your service providers and vendors if they can offer better terms that could save you money. It’s not uncommon for businesses to stick with a plan because it’s longstanding or they’re unaware of competitive alternatives. Review where you can cut costs, such as in your utilities or insurance, so you can compare rates, request a price match, or switch providers. 
  • Prioritize top-selling products: Identify your top movers and slow-moving inventory. Find creative ways to get less popular inventory out the door and reallocate funds from those products. Consider putting those additional funds toward boosting your bestsellers, building an emergency fund, or investing in other areas of the business that will increase overall profitability, such as employee development.
  • Consider an alternative lending partner: Having access to non-dilutive capital can be a game-changer, providing a healthy stream of capital when you need it most. Developing a relationship with an alternative lender, e.g., through invoice factoring, can help ease your cash flow concerns and weather unexpected challenges. Alternative lending can offer supportive solutions if you need more inventory quickly or want to invest in new equipment or technology.

Effective goal setting, cash flow management, and contingency planning are highly connected, paving the way for success and resilience this year. Remember to stay focused on your objectives, remain adaptable, and implement these strategies for sustained growth throughout the year. Please contact our team for additional assistance setting goals or exploring alternative lending.