We may mock them, but most of us make them. Moore Stephens recommends keeping these 10 business-related New Year resolutions in 2012.
1. Set clear goals
If you don’t have targets, there’s no way of judging how successful you are. Budgets are dull, but essential.
2. Keep to your terms of business
Review the credit limits you have set in your business – then apply them and stick to them.
3. Take prompt payment discounts
Settlement discounts can be as high as 2.5%, worth an annual return of 34.5% – about the best rate of interest legally available to most businesses. Take them.
4. Review your prices
With inflation at 5%, price rises will be expected by customers. You can only live on cost cutting for so long.
5. Review employee incentives
Good people are cheaper to retain than recruit. Talented people are always in demand, so ensure your incentives at least match the competition. Don’t be afraid to innovate.
6. Manage your cash
Cash always has been and will continue to be king. Keep control of it and ensure its accounting is always up to date. Don’t be afraid to ask questions.
7. Check your disaster recovery plan
Don’t just check it, but test it. If the test gives a 100% result, retest it because you probably didn’t do it right the first time.
8. Commit to good housekeeping
Ensure that accounts, tax computations, VAT, PAYE and any other regulatory returns are submitted, and payments made, on time. Failure to do so is becoming increasingly expensive.
9. Keep the bank informed
Don’t surprise the bank with last minute overdraft requests. Keep rolling budgets and forecasts and ask well ahead of your actual requirement.
10. Don’t act as banker to your clients
Send a reminder a week before due date, then chase debts hard immediately when they become overdue.