There’s no time like the beginning of the year to complete a thorough assessment of your business activities.  Where have we been? Where are we now? and Where are we going? Most good business owners take the time to at least think about what the year will bring. And in the wake of uncertainty of the upcoming year given inflation, increasing interest rates, the war overseas, and political turmoil, one of those line item tasks should include asking:

Who do I surround myself with this year?

Take an assessment of the professionals around you. Your attorney, your cpa, your banker, your technology person. Yes, you’ve worked with them for years, but are they serving the purpose you need them to right now? Certainly, you do not want to be in a quandary and then have limited options to choose from. The best time to explore your options is when you are not under a stressful situation.

Who should be on my team in 2023?

The obvious as stated above, but is that all the key management players I need to achieve my big impossible goals this year? Who else should I consider to help my teams perform? More importantly, who are bringing good ideas to the table that lets me choose the next steps for our business? Or takes my business into a new direction?

Think you have it under control? Think again! The world of finance is changing rapidly.  You do not have the time nor probably the desire to keep up with the latest and greatest growing financing trends, but there is nothing wrong with exploring some tried-and-true methods and incorporate some well-worn paths to grow your business.

As I have said many times before, cashflow is king. Protecting your business cashflow is the secret to your business success. I can guarantee, that none of those professionals can advise you on protecting your cashflow. They can only speak to managing your money, not generating it. Which is actually different than managing your cashflow.  Not having cash-on-hand to make payroll or pay your bills is one of those things that will keep you up at night. Not being prepared for a surprise negative cashflow situation, will take you out of business in an instant.

Of course, turning to the banks, when you need the money; they cannot lend it to you when you are in an adverse financial position. We are already witnessing the banks tightening their lending criteria and standards. And if you remember in 2008 crisis, the banks were not your friend. They were often the source of the problem. I am not saying this is 2008 all over again. The current situation is very different and there are some strong fundamentals at play. However, there are some similarities that are worth paying attention to. How does the saying go? The banks only lend money when you don’t need it. There is some truth to that.

And if you find yourself in a quandary, predatory lenders are waiting behind the scenes to scoop up on the opportunity. This is a position you want to avoid. So, if you are planning for a business-as-usual kind of year during your assessment, you may miss the mark. Lets be honest, this is a “Take Action” kind of year, not a wait and see how it goes kind of year. The smart people will make decisive plans and act early in the cycle. They will expand their tolerance limits and plan for the low cashflow possibilities. And they will surround themselves with talented people who can bring creative ideas to the table when navigating a difficult year. You will be brilliant!

At Business Loan Solutions, we are dedicated to your business success. We understand the importance of cashflow in your business and we strive to find the right solutions to keep operations running smoothly, even in this uncertain time. If the saying goes, the banks only lend money when you don’t need it is true, then the opposite is true too.  While your business is going well, look for solutions that work for you. Consider a working capital loan or a line of credit as a back up plan. Consider consolidating your loans, especially if you have a long-term loan coming due this year. Take advantage of equipment leasing or invoice factoring to diversify your cashflow possibilities. Or even investigate an SBA loan to expand your business. We have many levers to pull in your favor and we can help you plan this year’s cashflow strategy.  

So as we head into an uncertain economic year, who do you want on your team?