As entrepreneurs prepare to launch full-force into the 2023 fiscal year, it’s important to note that business planning should be dynamic and adaptable. Many outside forces can impact profits and growth, so keeping an eye on the state of business – and the world – is always a good part of any business plan.
Here are a few things to consider when planning for any personal or business financial moves in the new fiscal year.
Consider market volatility
The current bear market has both short- and long-term implications for personal investment strategy and industry. Stay abreast of what’s happening with the stock market today, and use reputable sources for keeping up with what’s projected in the days ahead. Governmental actions have ramifications even when not directly related to the markets, though sometimes those effects aren’t realized for months or years. Plan accordingly.
If you’re a Good Life client, you should receive a weekly email from DeWayne addressing current market news and providing some insight from our seasoned advisors. Contact us to sign up for that weekly update if you’re not seeing it.
Watch the Fed and inflation
As the Fed attempts to minimize inflationary woes through interest rate changes, your business may be directly or indirectly affected. A good business planning financial advisor will be able to address specific concerns, so keep in touch as interest rates and inflation concerns change.
Here’s a link to the daily Federal Reserve interest rate report.
You may need to adjust your FY23 planning to account for the rising cost of goods, changes in consumer demand, supply chain disruptions, and other effects of American economic fluctuations. You’re likely already experiencing some of these pain points, but the situation remains fluid and can change drastically with even the slightest interest rate increase.
Consult the CPI
A good indicator of future consumer demand is the Consumer Price Index (CPI), maintained by the U.S. Bureau of Labor Statistics. Here’s where you can find the latest CPI reports, organized by urban consumer goods and services. These reports come out on or about the 10th of each month, so set a reminder to get your CPI news straight from the source. Analysis of what those reports mean to your business will depend on your industry, geography, and the demographics you serve.
Keep business goals, timeline in mind
Even as so many details of what FY23 has in store are in flux, remember that your personal and business financial goals, timeline, and cash flow should dictate your level of risk tolerance. Just because you’ve created a plan for the new fiscal year doesn’t mean you shouldn’t re-evaluate internal and external factors at regular intervals. High volatility in the markets and larger economy dictate at least monthly assessment and adjustment of business planning factors for the coming year.
Meet with a business planning advisor
It’s easy to become overwhelmed by the sheer volume of information you’re required to monitor as an entrepreneur or business manager. That’s why you need a financial planning partner who has your best interests in mind. Meet with a Good Life Asset Strategies advisor to evaluate your personal and business financial goals, complete a current-state assessment, and create a plan to mitigate the effects of any possible scenario and protect your assets.
Contact us today for an initial consultation or to reassess your personal and business financial planning strategy. We’re ready when you are.