Making Good Financial Choices for The Year Ahead
With the start of a new calendar year, and the end of the tax year looming, many businesses will be looking at their finances and planning their spending over the coming months.
Spending time reviewing your business plan and modifying it to reflect changes in the market is one of the key actions of successful management. And, therefore will ready you for making great financial choices in the year ahead.
Identify the changes
New businesses come and go, customers can be fickle and change suppliers. New technologies can improve productivity or threaten your business. By comparing your position in the market today with where you were the last review you can identify your strengths and weaknesses and pinpoint new opportunities and threats.
Save or invest?
In uncertain times, it can be tempting to be conservative in your financial planning. Although it is wise to set aside some buffers for those inevitable rainy days, uncertain times can also be a great time to capitalise on your competitors’ reluctance to expand. Whilst reviewing your business plan you can identify whether you have cash available to invest and where best to invest it, such as training or equipment. You can also predict when you will need extra funding, which will allow you to avoid being forced into taking poor deals.
Once you have completed your planning you will have decided which areas of your business are getting a cash injection and which need to tighten their belts. Then you can decide on the specifics of spending the cash. If you have decided to buy new manufacturing equipment will it fit in your existing premises or will you be looking to move? If you need to take on more staff will you be looking to rent more office space? If you are improving staff training will you need to hire meeting rooms or training suites?
Politically, the whole world is in turmoil with a lot of uncertainty about what Brexit and the Trump administration will mean for business. This means that keeping your plans flexible. At RTC Business Park we have a wide range of offices to rent in Derby and light industrial spaces to meet the needs of modern businesses, including conference facilities and on-site canteen and trolley service. Renting allows you to easily change the amount of space you use and we have a range of flexible leases to ensure that you can respond to whatever the future holds.