Author: Canadian Western Bank

Here’s a set of solid practices a business owner like you should develop – or reinforce – until the end of 2024.

1. Keep track of your renewal or refinancing deadlines

Loan or mortgage coming due this year? Save some stress by reviewing your lending agreements. Plus, make sure smaller renewal dates, like utilities, don’t catch you by surprise.

2. 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.

3. Get into planning mode

Any time is a good time to revisit, refresh, or write your business and financial plans for the rest of the year. And don’t wait until January to think about what you want your 2025 to look like – start now.

4. Keep current with investment opportunities –and 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.

5. Don’t sit on your issues and challenges

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 that they’ll have helpful advice or direction.

6. 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.

7. 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.

8. 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. Consider coaching your staff on how to spot and avoid cyber security threats and what it means to practice good security habits.

9. 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

About the Author

Mississauga Board of Trade