Alternative Risk And Strategy In Business, Business Woman's Hand
Credit: Alternative Risk and Strategy in business, Business woman's hands protect balance wooden stack with hand control risk shape hierarchy on growing to lay the foundation and development to successful.
SMEs make up 98 per cent of Australian businesses and typically turn over between $100,000 and $50,000,000 annually.
so much riding on the average small business, why do so many business owners
risk it all by having poor planning within their businesses?
What we have found in our 85 years of working with SMEs is that often, the business owner doesn’t fully understand the crucial five elements that need some forward planning.
When a business takes some time upfront to get organised, it can dramatically improve business outcomes in the long term.
matter the size of your business, it’s important to outline your goals and have
strategies in place.
outlined the five key areas that we believe will set your business up for long
term success and help you avoid some common SME mistakes.
Human Resources (HR)
Sales and Marketing
Operations and Processes
working with a qualified business advisor to follow these steps, you are well
on your way toward securing your business future.
A common cry for help from SME owners is often related to their cash flow. Regardless of the business, you’re running or how good you are at your craft, at the end of the day cashflow is what you’re tracking. Throw this in with trying to work out tax minimisation strategies and risk management and you’re already getting snowed under – and this is only one pillar out of five. Identify your high and lowcash flow periods and be prepared for any unexpected expenses that may arise. And, if you struggle to get your head around it, get help, and get help early. Pre-planning will save you lots of headaches.
Human Resources (HR)
employees are your business. These are the people that you trust to help you
achieve business success. You’re paying these people to ensure your daily
business operations run smoothly, effectively and efficiently. Make sure they
know why they’re there, give them clarity around their job roles and
responsibilities, set clear expectations and hold them accountable. We find the
key to having good people is communication. Communication is the answer to
everything and can solve majority of your problems – before they arise.
Sales and marketing
you know what your brand is? (and no – it’s not your logo!) If you don’t know
what your brand is or what you stand for, how can you expect your customers to?
Clarify what your brand is and identify who your customers are. Then, you can
start mapping out your sales and marketing strategies and maximise your budget
with targeted marketing. Your marketing plan will reflect the periods you have
just identified as your high and low cash flow periods.
Operations and processes
is essential that your internal systems and processes reflect you and your
business needs. Ensuring your processes and procedures are up to date will save
your staff time – and remember, you’re paying them for their time. If you can
make it a priority to regularly review your procedures, you’re setting yourself
up for efficient work practises.
Information Technology (IT)
sure your IT is led by your business. There is no point having software in
place if it is not meeting the everyday needs of your company. Choose IT systems that make your life easier,
are simple to use and add value to your business.