Executive’s Desk: How to position your business for success this fall

For many entrepreneurs, fall marks a key transition point that can set the tone for year-end performance. It’s a crucial time for business owners to assess their finances and practices to prepare for upcoming opportunities and new seasonal cycles of customer engagement.

To ensure success and maximize the last part of the year, here are some tips to help optimize cash flow, make data-driven decisions, and keep important information secure.

Solidify cash flow

To finish the year strong, business owners should meticulously manage and monitor cash flow by:

Forecasting budget:

• Businesses in certain sectors can be susceptible to feast-or-famine cycles. Here in New Mexico, with the Balloon Fiesta and perfect temperatures for outdoor excursions, fall brings peak numbers of tourists, which boosts revenue for many businesses. But also prepare for decreases during winter as well. Whether your business is preparing for higher or lower demand, it’s important to build potential revenue cycles into your budget.

Proactively exploring financing options:

• Don’t wait until you’re in a Q4 cash crunch to seek financing. If you don’t have an existing relationship with a bank or credit union, start the fall season off right by establishing one. A line of credit can be a valuable safety net toward the end of the year.

Think like a CFO

Every season, business owners should use data to identify trends, forecast revenues, and plan accordingly. To better understand your performance, start by:

Segmenting your customer base:

• Understand which customer segments are most active in the fall and tailor your offerings to them. Are locals more likely to spend, or are you reliant on tourists? These considerations can better inform marketing messaging and spending.

Developing and tracking key performance indicators (KPIs):

• While overall revenue is important, use a variety of metrics to measure the success of your business. Track KPIs like customer acquisition cost, average transaction value, and website traffic, which provide visibility into your current performance and enable you to pinpoint optimization opportunities.

Take a proactive approach to cybersecurity

Recently, we have seen a rise in customers and businesses falling victim to sophisticated scams and cyberattacks. As threats evolve, cybersecurity management is essential for maintaining business operations and retaining the trust of clients and partners. Three areas of focus to start with include:

Building and testing a comprehensive ransomware plan:

• About a third of breaches involve ransomware in businesses of all sizes. Staying informed about current cyber threats and creating a ransomware response plan is a priority for every modern business.

Combating business email compromise:

• This is a type of social engineering where criminals send digital communications impersonating known contacts to distribute malware through infected attachments, coax email recipients to visit infected sites, or trick recipients into sharing confidential or proprietary information or access credentials. This costs businesses billions in financial damage every year. Regularly train employees to recognize suspicious activity and consider investing in email filters to help flag and detect fraudulent emails.

Preparing against AI-assisted social engineering:

• Cybercriminals are using AI to defeat security controls and to trick employees. Again, employee education is key in keeping your business, employee, and client information safe. Businesses can also deploy AI tools to counter social engineering tactics by using the tools to identify and manage threats, scan for system vulnerabilities, and respond to alerts.

Owning a business is a rewarding but challenging vocation, and a crucial element of success lies in effectively managing fluctuating consumer needs and costs as the seasons change, while staying vigilant of information security. By taking proactive steps through the fall months, you can set your business up to end the year strong.