Preparing your finances now can help you build resilience and position your business for growth.
Here are key steps to focus on:
1. Revisit Your Cash Flow Strategy
Review your monthly expenses and identify non-essential costs to trim. Aim to build or maintain a cash reserve covering 3 to 6 months of operating expenses. Update your revenue projections conservatively for 2026 to avoid surprises. Strong cash flow can give you more flexibility to help manage fluctuations and seize new opportunities.
2. Prepare for Potential Tax Changes
Tax rules may shift next year, so evaluate whether it makes sense to accelerate income or delay deductions based on your outlook. Keep your bookkeeping accurate and up to date—this is critical for effective tax planning and reducing unexpected liabilities.
3. Strengthen Retirement and Exit Plans
Your business is one of your most valuable assets, so don’t delay your personal financial planning. Review or set up a retirement plan (SEP IRA, Solo 401(k), etc.) and ensure you’re improving contributions. Also, revisit your exit strategy—whether selling, transitioning, or winding down—to help protect your legacy.
4. Review Debt and Interest Rate Exposure
Interest rates may fluctuate in 2026. Assess your current loans and lines of credit to see if refinancing or locking in fixed rates could benefit you. Understanding how rate changes impact your cash flow can help you manage costs and maintain stability.
5. Update Insurance and Risk Management
Your business likely has new risks since last year. Review your coverage, including liability, property, workers’ comp, cybersecurity, and business interruption insurance, to help make sure you’re adequately protected.
6. Invest in Technology and Efficiency
Automation, AI, and digital tools continue to reshape business operations. Consider investing in software that streamlines accounting, sales, or HR, enhances cybersecurity, or improves customer experience—these can help boost profitability and reduce workload.
7. Build a Proactive Advisory Team
Successful business owners collaborate closely with their financial advisor, CPA, and attorney. Together, we can coordinate tax and financial strategies, stress-test your 2026 budget, and spot opportunities to help you grow your wealth and navigate regulatory changes.
Let’s Build Your 2026 Plan Today
Whether your goal is to expand, stabilize, or prepare for transition, early planning can help gives you a competitive edge. Contact me to review your current strategy and develop a personalized plan for 2026.
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