CONNECT Magazine Article
10 Good Habits for Business Owners
Author: Canadian Western Bank
A round up of best practices entrepreneurs will want to start – or continue – this year.
- Keep current with investment opportunities – and this year think longer term when it comes to locking in your business-related funds.
Take advantage of strong GIC rates to help grow your business’ cash. If you can, maximize your returns by investing some of those funds for a longer term because these rates won’t last forever.
- Map out your renewal or refinancing deadlines.
Loan or mortgage coming due this year? Save some stress by refreshing yourself on your lending agreements.
- Brush up on your understanding of how to use your business funds.
Lines of credit that are margined by inventory and/or receivables are not intended to be used for capital expenditures – they’re for day-to-day operations. Term debt – or accumulated cash on hand – is what you should be using for your capital expenditures.
- Improve your recruitment and retention efforts with an employee group savings program.
Helping employees reduce their money worries isn’t just a great way to show you’re a caring employer – it can also go a long way in attracting team members to your company and encouraging them to stay.
- Get into planning mode.
While resolutions may be all the rage, the first part of the new year is also an opportune time to revisit, refresh, or write your business and financial plans for the year.
- Don’t sit on your problems.
Be proactive and get in the practice of talking to your external partners the moment a problem is identified – whether that’s your banker, insurance company, accountant, or lawyer. You’ll likely find them in a better position to help.
- Review your business credit score.
Check your business credit score at least every quarter. This will help to identify any surprises or challenges with making current loan payments. It will also provide a sense of the business’ financial health and the chances of getting another loan approved.
- Reduce your risk of cyber fraud.
Set a calendar reminder to frequently change your passwords. When someone emails or texts you a website link and you’re unsure if it’s valid, call the source directly to verify it’s safe.
- Invest in cyber security awareness training for your team.
Coach your staff on how to spot and avoid cyber security threats and what it means to practice good security habits.
- Leverage your social media accounts to better understand your customer.
Use social media to research and engage with your customer base, gather important feedback on your services or products, and keep a pulse on customer needs.
Get more insights: www.cwbank.com/blog
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