What’s your financial goal for your small business? Having clear and attainable objectives for your business is fundamental to shaping its strategic direction and driving growth and profitability. The process of setting and striving to achieve financial targets provides you with opportunities to gain clarity, focus, and motivation. These, in turn, can serve as your compass as you navigate the complexities of running an enterprise and overcome the challenges that naturally come with it. Now, what financial goals should your small businesses strive to achieve? Here’s a list of the objectives you should consider adopting:
1. Increase Revenue
Making a goal of boosting business revenue directly impacts your company’s growth and profitability. It can serve as the driving force behind your organization’s top-line performance and inspire you to generate more income that you can reinvest into your operations and fuel further growth. More than increasing the financial resources available to the business, increasing revenue also strengthens your enterprise’s competitive position in the market.
Attaining this fundamental financial objective requires your small business to increase sales, expand into new markets, or even introduce new products and services. Some enterprises implement targeted marketing strategies, while others optimize pricing strategies and focus on customer acquisition and retention. At the same time, identifying niche opportunities and leveraging technology to streamline sales processes can also help your businesses drive revenue growth.
2. Reduce Debt
Bank loans provide enterprises like yours with the resources needed to improve cash flow or expand your operations, among other benefits. However, it’s prudent to make a financial goal of managing business debts effectively to reduce the financial risk that comes with these debts and improve your enterprise’s long-term financial health. Making a priority of reducing debt levels enables your business to free up financial resources that can be allocated to other business priorities, such as investment in growth initiatives or building financial reserves.
Start working on this target by developing a debt repayment plan. The strategies for managing debt differ per business, but it’s practical to prioritize resolving high-interest debt. It’s also a good idea to explore debt consolidation to make the process of repaying debt more manageable.
When exploring credit options in the future, it would be a good idea to consider loan products with more reasonable payment terms. Maya Business, for instance, offers Maya Flexi Loan that enables small businesses like yours to unlock up to PHP 2 million in additional funding with borrower-friendly fees. This can be a viable alternative to popular but high-interest loans, and relying on it can make it easier for your business to meet its financial obligations while seizing opportunities for growth.
3. Diversify Revenue Streams
Diversifying revenue streams is a strategic financial objective for small businesses that aim to reduce dependence on a single source of income and mitigate the risk of revenue fluctuations. This goal provides your enterprise with multiple sources of income, which can then reduce its vulnerability to economic downturns, changes in consumer preferences, or industry-specific challenges. There are different ways to diversify your enterprise’s revenue streams. For instance, your company can expand into new markets, offer complementary goods and services, or target different customer segments.
4. Build Financial Reserves
Small businesses like yours require a cash cushion to mitigate the impact of unforeseen events, economic downturns, or unexpected expenses. By setting aside funds for emergencies, you can avoid cash flow disruptions, maintain financial stability, and navigate challenging times with confidence. It’s possible to attain this objective by setting aside a portion of your profits regularly, establishing a dedicated emergency fund, and automating savings contributions to ensure consistency.
A smart way to build your enterprise’s financial reserve is to make your money work for you. For instance, you can put your financial resources in fully digital business banking services providers that offer much higher interest rates compared to traditional banks. Maya Business Deposit, one of the online business banking solutions offered by Maya Business, is a practical option. The amount you set aside in this account can earn a 2.5% interest rate, which is some 20 to 25 times more than what the average commercial bank is willing to give. At the same time, this bank account can be used to transfer funds to any bank via InstaPay and PESONet for free, allowing your business to enjoy a greater deal of savings while processing transactions.
5. Improve Profitability
A key requirement to ensure the long-term viability and success of a business, improving profitability is a target that can enhance your enterprise’s bottom-line performance and strengthen its financial position. Realizing this objective gives your business the financial resources needed to reinvest in the company and withstand economic downturns or unforeseen challenges.
There are plenty of ways to maximize profit margins, such as through cost control and pricing optimization. Other tried-and-tested ways of improving profit margins are closely monitoring expenses, identifying cost-saving opportunities, and implementing measures to enhance productivity and efficiency. Investing in training and development as well as the acquisition of technology solutions are also effective ways of preparing your business to improve its profitability and drive sustainable growth in the long run.
Maya Business: Your Partner in Achieving Your Business Financial Goals
The assistance of a dependable business banking online solutions provider is essential to achieving your financial goals for your enterprise. Find one today by signing up for Maya Business.
Setting up a Maya Business account lets you open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. This comes with the capability to send money to your partners and suppliers for free via InstaPay and PESONet, which can lead to more savings.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months. Just use Maya Business as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.
Sign up for Maya Business today to enjoy the financial advantages offered by using Maya Business solutions.
