Have you caught the San Diego Padres gearing up for the regular season during spring training? It’s when prospective players get their shot to try out and current players strengthen their skills — but how does that relate to your small business? Like the Padres, this is your chance to check in, try new things, build upon your skills and strengths, and get ready for the months ahead. 

Review or Set Goals

It’s never too early to check in on your goals, make tweaks, or establish clear objectives if you’ve been winging it. Here’s what you can think about:

  • How can you streamline operations and remove inefficiencies? Consider improving cumbersome customer processes, outsourcing or automating tasks, and freeing up resources to reinvest in your business.
  • Are your marketing and sales efforts attracting your ideal customer? To increase your reach, it may be time to ramp up your social media presence, make practical updates to your website, and nurture your current client base.
  • Do you have enough cash on hand to handle the unexpected or pursue a timely investment opportunity? Setting clear SMART goals helps you explore how to tap into capital and free up resources to reach your objectives.

Identify Ways to Increase Cash Flow

Want to save money in the long run? Get a clear picture of your cash flow and find ways to increase it. With tracking tools or the help of a professional, you can anticipate your needs, spot potential problems, and proactively plan for contingencies. Once you have a bird’s eye view, you can consider additional strategies to increase cash flow, such as:

  • Renegotiate rates and ask for better terms with vendors and partners.
  • Get less popular inventory out the door and reallocate funds from those products toward top-selling products, an emergency fund, or other areas that will increase profitability.
  • Access non-dilutive capital through an alternative lender to establish a healthy stream of funds when needed.
  • Learn how to grow your business for free while not constraining your cash flow, such as through a new email campaign or identifying operational redundancies you can remove.

Manage Your Tax Liability

Get on the right financial foot by taking a proactive approach to your tax management. You may consider the following on your own or with a professional:

  • Establish a recordkeeping system to organize and track your expenses, income, charitable donations, profit and loss statements, and more.
  • Identify eligible deductions to reduce your taxable income, and consider other strategies, such as timing your purchases or delaying collection payments, and how they may benefit your tax situation later.
  • Stay informed about changes to tax laws and opportunities or consequences they may present for your business.

Ready to take your small business to the big leagues? Take a play from spring training: consistency, strategic planning, and mastering the fundamentals we’ve discussed are great starts to a winning season. Visit our blog for more small business resources.