{"id":75888,"date":"2023-04-14T07:30:00","date_gmt":"2023-04-14T14:30:00","guid":{"rendered":"https:\/\/honeybook.site.strattic.io\/?p=75888"},"modified":"2023-04-14T08:10:31","modified_gmt":"2023-04-14T15:10:31","slug":"financial-health-check","status":"publish","type":"post","link":"https:\/\/hbbadmin.dev.reliablepenguin.com\/blog\/financial-health-check","title":{"rendered":"How to conduct a business financial health check this year"},"content":{"rendered":"\n

Conduct a business financial health check by understanding your revenue, expenses, credit, and more. Set yourself up for steady cash flow and long-term growth.<\/em><\/p>\n\n\n\n

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As you begin to pursue your goals this year, make sure you\u2019re keeping your profits in the green by setting aside some time to conduct a business financial health check. When you understand the ins and outs of your financial performance, you can be more strategic about reaching your business goals. Making sure you have a long-term plan for the well-being of your business can set you up for financial success.<\/p>\n\n\n\n

To determine if your business is financially healthy, you should take a look at your revenue, expenses, business credit, and investments. Assess how your money is coming in and out as well as how you\u2019re using it. This will help you determine the types of clients you should take on, your ideal pricing structure, and what resources you need this year. <\/p>\n\n\n\n

If you haven\u2019t already, prepare for your financial review by pulling these five year-end reports<\/a>.<\/p>\n\n\n\n

Evaluate your operating expenses<\/h2>\n\n\n\n

First, evaluate your business expenses. If you use an integrated CRM for small businesses<\/a>, you should already have all your costs tracked. Using an all-in-one solution like HoneyBook integrated with QuickBooks, you can view your expenses and revenue all in one place.\u00a0<\/p>\n\n\n\n

Once you pull your expense report, audit the full list for expenses you can cut this year. Think about what you used last year and assess whether everything on this list is really needed. There may be software subscriptions you aren\u2019t using or even larger expenses like office rent. <\/p>\n\n\n\n

By completing an audit, you might realize that you\u2019ve been spending money on multiple subscriptions when you could be consolidating with all-in-one solutions. Instead of paying for meeting scheduling tools<\/a>, an invoicing system, and a time-tracking app, consider migrating all your needs into one streamlined HoneyBook account<\/a>. By satisfying multiple needs with one tool, you\u2019ll eliminate the need for smaller subscriptions that can really add up. <\/p>\n\n\n\n

Once you\u2019ve identified where you\u2019re spending extra money, you can make the choice to get rid of the expenses<\/a> that you don\u2019t need. <\/p>\n\n\n\n

As your business grows, you may have new (or growing) expenses to take on each year that you know you can\u2019t cut. You may be at the point where you\u2019re taking on payroll expenses or payments to contractors. In this digital age, software is essential for growing your business. Make a list of these new items, and items you\u2019ll eventually need for growth, and consider how much you need to raise your prices to accommodate everything. <\/p>\n\n\n\n

Don\u2019t be afraid to establish pricing<\/a> that keeps your business moving forward. If your new expenses are adding value for your clients, they\u2019ll understand why you need to increase pricing and make a few changes.<\/p>\n\n\n\n

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Get our free pricing strategy guide<\/h2>\n

Scale your business’s financial health year after year by understanding how to set your prices and increase appropriately.<\/p>\nGet The Guide<\/a><\/div>\n<\/div>\n\n\n\n

Consider diversifying your total revenue<\/h2>\n\n\n\n

After you\u2019ve analyzed your expenses, take a look at your total revenue from the past year. Decreasing expenses and raising prices<\/a> is one way to work toward greater profits, but you should also consider ways you can diversify your income. <\/p>\n\n\n\n

Many independent business owners reach a point where they\u2019re ready to take on bigger projects, which can bring in greater revenue. If you feel like you\u2019re at the point where you can take on new clients, consider your marketing plan and goals this year. Even if you\u2019re just testing new initiatives to start, bringing in new types of clients can help you secure your financial health for years to come. <\/p>\n\n\n\n

While you\u2019re going after bigger projects, that doesn\u2019t mean you need to ignore your other clients. Consider clients you\u2019ve had to turn away because of their budget limitations. Look for ways you can service these clients without adding more work to your plate. That creates a win-win situation where you\u2019re also growing your revenue. <\/p>\n\n\n\n

Create a-la-carte services, or design digital products that create consistent cash flow<\/a>. Your a-la-carte services can function as add-ons or small projects for clients who might not have the budget for your full-scope services. <\/p>\n\n\n\n

Digitizing your services can also function as passive income. For example, if you\u2019re a business coach you can create paid worksheets or digital courses that clients can pay for and use on their own time. <\/p>\n\n\n\n

With greater income coming from a variety of sources as well as fewer expenses, you can raise your bottom line this year.<\/p>\n\n\n\n

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