The start of a new year can be both exciting and nerve-racking. It doesn’t necessarily matter how your business did the year before, there is always some level of uncertainty as to what the future will hold. The stock market seems to be heading in the right direction, and talks of a recession have calmed down a bit; but this doesn’t mean you are in the clear or shouldn’t prepare if the economy takes a turn for the worse. If you haven’t yet made a plan, below are a few tips that will help you quickly fire up revenue in 2020 and position you for success in any economic climate.
Cut Non-Revenue Generating Expenses
When business is going well and the economy is growing, it’s easy to get carried away with spending. If you invested in automation, technology, or work-life balance benefits for your employees, then you will most certainly reap the benefits of those expenditures. However, not every business purchase you made in 2019 may bring dollars through the door down the road. It’s important at the end of each year to review all your recurring expenses (expenses you are charged on a repeating basis, usually monthly) and see which ones benefit your business.
If you increased your advertising expenditure in 2019, check the performance of each ad to see if it converted to new clients. Also, evaluate your current systems to see if they are outdated or too expensive. Do you have old equipment you are currently paying to service regularly? Do you have an expensive phone system that could be replaced with affordable cloud-based technology? A recession may or may not come in 2020, but if it does, you want to be sure your business is operating as lean and efficiently as possible.
Organize Your Balance Sheet
If 2019 saw your business accumulate excessive or expensive debt then now may be a good time to consider consolidating that debt into one, more affordable loan. Many business owners find the allure of easy access to capital hard to resist, and end up taking on unnecessary loans or merchant cash advances. A good rule of thumb is to only borrow money your business can truly use for revenue generating expansion, and afford to pay back. If you borrowed too much in 2019, or your current debt is too expensive, contact South End Capital to learn more about their 7.5% consolidation loan that is amortized over 10 or 25 years.
One of the biggest mistakes business owners make when borrowing is taking out a loan just to have money in the bank. Although having money in your account for a rainy day may seem smart, it will cost you hundreds or thousands of dollars in unnecessary interest payments. Having reserve capital in place is a great idea, but a business line of credit should always be used for this purpose, not a loan. Opening a business line of credit is free, and you only pay interest if you draw down funds from your credit line, not just to have it in place. Fundbox offers business credit lines up to $100,000, most businesses are eligible, and borrowers with credit scores of 500 or greater can apply and get a decision online in as little as 3 minutes.
Working with a specialized debt adviser can also be a great benefit to not only help you clean up your balance sheet, but put a structured and responsible debt plan in place for 2020. Strategic Capital‘s business debt specialists deliver no pressure, concierge level customer service to help you organize your business debt. Strategic Capital will also recommend financing options that are best suited for your business.
Setup or Improve Your Online Presence
If you aren’t online, you’re not only losing business, but you are setting yourself up for failure. Not having a business email address and website projects the image that you are either not competent or not reputable. Setting up a website and business email is simple and in some cases free. If you are using your personal email address to conduct business, you’ll look much more professional if you setup a business email account that ends if your company’s website address (i.e. firstname.lastname@example.org). Also, if your website hasn’t been updated in at least the last 5 years, it’s time to do so. How people interact with websites has changed dramatically in the last half-decade and they expect a fresh and contemporary experience.
Getting your business ready for 2020 can be a painless process and yield great results. It will only require you to carve out a little bit of time at the beginning of the new year to review surplus expenses, evaluate your balance sheet, and update your online presence. Each of the above items can be done with minimal time and capital investment, and if done correctly will help position you for your best year yet.
Interested in consolidating high-cost business debt, opening up a business credit line, or working with a business debt adviser? Contact our recommend lenders South End Capital, Fundbox, or Strategic Capital.