Whether you are thinking of starting a business or purchasing an established one, proper business planning is a vital component for your success. From tracking your spending to analyzing your growth, establishing a budget and staying within it, to planning for your financial future, a strong business plan is the only way to achieve your short-term and long-term goals. With over 35 years in the accounting and business advisory world, the experts at SD Associates know that a business plan is not the same for a large corporation as it is for a small business—so here are four business planning tips for you and your small business!
Be Sure to Balance Your Business and Personal Goals
As a small business owner, your business and personal financial goals are closely aligned, and because of this, it is crucial for you to establish both short-term and long-term goals every year. For example, if you’re looking to expand your business into a new market or move into a larger space, these goals may impact a personal goal of saving for retirement or buying a new home. It is important to strike a balance between the two, and SD Associates can assist you with that.
Keep Costs Under Control
For any size business, the only way to avoid failure is to generate a profit, but as a small business owner, your business’ success directly affects your personal financial success. To help keep your small business successful, staying on top of all your expenditures is crucial. This can make or break your business’ success. Investing in a solid business advisor can pay off big in the end—not only will they assist you in tracking and analyzing your costs, they will also know to look for things such as operational deficiencies and redundancies, result-based compensation, economies of scale and ways to increase productivity.
Start with the End in Mind
Although you may be focused on having your business benefit your current financial situation, establishing a retirement plan will benefit you and your employees’ future stability. Retirement plans are a great way to save money long-term, but they can also help reduce your current taxes and increase the employees’ loyalty. There are a number of types of retirement plans, but a few that be should considered are a 401(k), SEP IRA and SIMPLE IRA. Along with your financial advisor, SD Associates can assist you in determining the best option for you and your business.
Don’t Miss Out on Tax Opportunities
When it comes to filing and paying your taxes, it can be a stressful and complicated process, and as a small business owner, you are going to want to maximize your deductions as much as possible. To ensure you’re not missing any opportunities, be sure to start your year-end process early. Another important tip is to keep a detailed record of your expenditures, track all filing dates and remember to pay all federal, state and local taxes, payroll taxes, local permits and fees. This is a lot of responsibility if you are doing this yourself, so it’s best to hire a small business professional.
Looking to improve—or implement for the first time—the business plan for your small business? Contact us today!