4 ways to plan for business success in 2023
With 2023 just around the corner, it's time to put plans in place for the future success of your business. We take a look at some easy ways to get ready for a great year.
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2022 has flown by and 2023 is just around the corner. If you haven't already, it's time to start thinking about your business goals for the new year – and maybe even beyond!
Let's take a look at 4 of the key ways you can set you and your business up for future success.
1. Set your goals
Setting goals is one of the most important things your business can do to kick off 2023 – or any new year, for that matter. Without clear goals in place, it's very difficult to set metrics for success or to assess where you might have fallen short.
Of course, the specifics of these will look different for every business. It may be geared towards hitting a certain sales target, achieving a percentage growth in profit, opening a new location or growing a new division.
What's important is that you have indicators of success attached. This way, you'll be able to justify the necessary costs and effort involved to stakeholders. Whether that's yourself as a business owner or to a board of directors, the underlying principles are much the same.
In fact, one of the best ways to set goals is using the SMART system, which is an acronym for "Specific, Measurable, Assignable, Realistic and Time-related". You're able to break a goal down to key components:
- Specific – What you're trying to achieve
- Measurable – Its metrics for success
- Assignable – Who on your team can do it
- Realistic – Determine whether it's achievable
- Time-related – What sort of timeframe it can be done in
2. Keep an eye on cash flow during interest rate rises
During 2022 we saw the cash rate rise a number of times, and businesses are understandably wondering whether this will continue into 2023. It's important to be prepared accordingly, and there are some key steps your business can take in preparation.
Ensuring adequate cash flow is one of the most important steps in the process. Cash flow is essential for any business – but rising interest rates can have an impact on investments and capital. It could also lead to higher repayments on some loans. That makes liquidity harder to manage, which is where financial tools like charge cards can be quite useful.
Unlike credit cards, charge cards have no pre-set monthly spending limit1 or interest charges. For example, the American Express Platinum Business Card offers up to 55 days to pay for purchases2. It also earns points which can be used to help offset certain business expenses. It's a straightforward way to free up some cash flow.
It can also help you put in the hard yards at the back end of 2022 and ensure that your business is set up for success and ready to go from January 2023.
3. Invest in better cybersecurity
One of the key investments you need to make in 2023 is better cybersecurity for your business. SME owners often find themselves in the mindset that they're "too small" to attract attention from cyber criminals.
But in truth, they're often the most vulnerable. After all, it's easier for hackers to send 200 spoof emails to SMEs with unsophisticated cybersecurity policies than it is to try and take down a major corporation.
This risk is elevated if you've got a remote workforce – a distributed network means more potential entry points. So if you haven't reassessed your cybersecurity risk recently, there's never been a better time. Update your cybersecurity and cyber insurance policies ASAP.
4. Get ready for new opportunities
Though it can be tempting to focus on the negatives with interest rates on the rise, this would be a mistake. After all, with every new challenge comes a new opportunity.
For example, rising costs mean that customers are often looking for new places to buy from. Larger suppliers are often looking to lock in guaranteed business to offset potential losses. Both of these have the potential to benefit your business, as you can appeal to new customers and potentially negotiate with your suppliers for a better deal.
Of course, this still means preparation on your part. This will take different forms for just about every business, but there are a few that apply to almost every business, such as checking your business credit rating. Additionally, if you're looking to borrow this year, work with a broker to navigate the lending landscape more effectively.