How Can Your Small Business Pick Up Momentum This Year?

Small businesses are the life’s blood of the US economy. According to the SBA, there are 30.2 million small businesses in the United States as of the end of 2018.

Every business has its own challenges and goals in 2019. We’re already at the end of  2nd quarter, and you may have some momentum as you look forward to the end of the year – but there’s always room for improvement. Here are a few tips to help your small business pick up financial momentum this year.

Analyze Last Year’s Numbers

A good place to start is with last year’s numbers. Reviewing them can help you understand where your business succeeded and where your strategies may have fallen short. How did your first quarter compare to last year’s? How are the projections shaping up for Q2?

You should plan to look at your income, budget, expenditures and net profits. If your projections for last year were off, take a second look at the potential reasons, and try to brainstorm some new ideas to carry out later this year.

It also helps to take another look at any of last year’s sales reports. They may contain further insight into your business’s volumes and revenues. Make note of anything you may have overlooked during your initial analysis of the numbers.

Make Projections

Once you’ve thoroughly analyzed your numbers from last year, you can use what you’ve learned to create more accurate projections for the third and fourth quarters of the year.

For the rest of the year, make sure to request numbers from your sales team frequently and do some more in-depth research into the market to further refine your projections. From this information, you can develop new promotional strategies to try later in the year.

Finally, be sure to think carefully about which products or services are already performing the best so far this year as well as those that may need a new sales strategy.

Craft a Budget

Next, adjust your business’s budget for the third and fourth quarters of the year, taking what you’ve just learned into consideration. You may find opportunities to reduce your operating costs and increase your profits.

Specifically, you should plan to:

  • Project your company’s sales and expenses for the third and fourth quarters of the year, working with your management team as needed; and
  • Review the master budget, which should reflect the adjustments you make to your projections, cash reserve estimates and credit availability.
  • Update your cash flow statement, balance sheet, profit and loss statement and debt.

Keeping everything up-to-date will help you manage your cash flow more effectively while giving your small business the opportunity to grow.

Re-Examine Your Estimated Year-End Profit

Finally, you should review your year-end profit projection. If it no longer seems realistic, you may need to cut your costs, reduce your debt, or ramp up your marketing efforts to make more sales to meet your goals.

If you do find that your business is running into cash flow and financial issues, you may want to consider partnering with an invoice factoring company. Factoring provides near-immediate cash flow and can provide you with the capital you need to maintain your momentum for the rest of 2019.

For more information about small business invoice factoring services, click here to contact Triumph Business Capital.