There’s no time like the present when it comes to putting in place good habits for spending your company’s money. You may be toying with the idea of adopting better financial habits in the new year. But it would be better to start spending and saving your money more thoughtfully now.
Thinking about your business financial habits with plenty of time before the new financial year will cement those good habits and put you on the right track. Experts on habits agree. If you are going to make a new habit part of your life, you need to start now. Not on Monday, not on the first of the month and not in the new year. Here are tips to help you change your habits.
Plan. For your business to be successful, you need to have a plan. You can’t blindly stumble from a big win, to a failure and back again. You need to have clearly defined goals for each day, week, month and year. You’ll also need to look back often to assess your goals and make sure they are still right for you. Without these goals, your days and years will be spent running from one drama to the next.
Organise. After you’ve made your plans, you need to organise how you are going to make them happen. If you fail to follow these steps, you could be spending time and money doing tasks which aren’t necessary. As US founding father Benjamin Franklin famously said: “If you fail to plan, you plan to fail.”
Budget. They may not seem like the most fun, but they are essential. It is vital to know what money is going out and what is coming in. By budgeting, you can find where you can cut costs. For example, when paying staff, you should be making use of a debit order to save thousands of rands in bank charges.
Staff. There is a fine line between hiring inexperienced and cheap staff versus people who have the necessary experience but cost more. There isn’t a right or wrong answer. You need to decide what solution works best for you in each situation. Just remember, everyone has to start somewhere.
Delegate. As the company owner, your time is far more expensive than the rest of your staff. Your daily activities need to bring money into your business. Smaller tasks – from making coffee, to filing paperwork and answering phones – should be dealt with by someone else.
Keep these habits in mind now and put them into practice. You’ll be thanking yourself when January 1 rolls around.