It is the start of another year! 2025 is rolling in hot for a lot of us. The expectation at the start of the year is for resolutions to be made, goals to be written, annual bingo cards to be created, and vision boards to be inspired.
A business owner’s resolution may be to become financially prepared for the future. But how? We are here to help make this daunting task into small, consumable bits.
Create a Budget
A great first step to being financially prepared is creating a budget. You need some basic financial information about your business to create a budget.
Track your standard monthly income and expenses. Accounting software is a great way to organize monthly, quarterly, and annual income and expenses. When reviewing your historical financials over different time periods, you will see different patterns in both income and expenses.
When you know the monthly/quarterly/annual income and costs, you can budget for the future (also known as creating projections).
If you need help creating a budget or choosing the right accounting software, email lrc@businessimpactnw.org. Business Impact NW also offers Virtual Tax & Bookkeeping Coaching, which is exclusive to our clients and is heavily discounted at just $40.
Save for Tomorrow
Once you have a budget created, you will have a much better understanding of when it is logical for you to put surplus income away into a savings account.
You may ask, why do I need a savings account? Why not use it to buy more inventory or give myself or my employees a bonus? Having money saved for an inevitable rainy day can be a lifesaver. Savings can be used to pay for an unending list of things:
- Inventory – A product may sell twice as fast this year. If you have a savings account, you could buy more of that product before you run out.
- New equipment – Savings can be used as a down payment or to cover the whole cost of a new piece of equipment.
- Repairs – Savings can pay for unexpected repairs.
- Unexpected slow days—Savings can help cover expenses when earnings fall short due to events like snowstorms, heat waves, or power outages.
- New hires – Bringing on employees comes with upfront costs. Savings can help cover training until they become revenue-generating.
Choosing the right savings account can feel overwhelming, but we’re here to help. Our business coaches are available virtually or in person, and you can check our calendar for dates and locations. We also offer Grow & Thrive, a great resource for business owners seeking guidance. If you already have a savings account, your financial institution and CPA can also provide valuable advice on the best options for your situation.
Loans
If your budget shows that saving for your next project will take longer than you’d like, we’re here to help. Business Impact NW offers business coaching and loans to support improvements, energy efficiency upgrades, equipment purchases, and more.
Want to know if your business is loan-ready? Check out Smart Borrowing for insights.
About the author
Katelin Enos
(Kayt- Lynn, Ee-nus)
Katelin is the Vice President of Lending Operations and Credit for Business Impact NW, where she oversees the Lending Team. With a dedicated focus on steering the Loan Officers, Underwriters, and Documentation & Servicing Team, she ensures that Business Impact NW’s portfolio adheres to compliance standards. Katelin’s expertise, honed by over nine years in the financial industry, shines through her two promotions, culminating in her current position. Having previously worked with First Interstate Bank for nearly 7 years, her vast experience also includes approval authority of funds and assisting with forming the Lending Department. Katelin additionally holds a Bachelor’s of Finance from Oregon State University.