Interest rates are rising, fuel costs are soaring and the cost of consumables is going through the roof. Economists are issuing dire global recession warnings, and anyone would be forgiven for feeling apprehensive about the new financial year.
If you have never reviewed your business performance before, now is the time companies should be evaluating their previous year’s performance and planning ahead on how to grow your business, while reining in unnecessary costs.
Here’s a top six checklist on how to prepare for the new financial year, ensuring you get off on the right foot.
1. Costs
Having reviewed last year’s costs, and knowing prices are rising, where can you trim back on products or services? Can you buy products in bulk to save money or cut back on subscriptions (professional, publications etc) you don’t use? Can you negotiate lower rates or more favourable payment terms with suppliers or providers? Of course, you don’t need to cut out the things that are working for you – just trim the things that aren’t. Reinvest that money and money from any tax return you get into initiatives that will reap rewards in your business if you can afford to.
2. Cashflow
To grow, any business needs strong cash flow and some money in the bank to cover business overheads, tax bills, wages, superannuation and other expenses. Update your cash flow projections so you can plan for and protect any “down” periods and plan for any possible shortfalls. Trading while insolvent can spell the end of a company, with possible outcomes such as liquidation, personal bankruptcy and director liability.
3. Processes and time management
Business owners are forever trying to manage the minutiae of running their business, as well as looking for ways to scale up. There never seems to be enough time. The key is to work smarter, not harder. Look at how you can streamline tasks and processes. Often there’s an app or software that can help, from creating templates for important documents to project management software. Look at keeping your records organised and automated if at all possible. If you have a reasonable number of employees, there are some fantastic cloud-based HR and performance management platforms available to businesses of all sizes to help with day-to-day employee management, performance management, onboarding and training needs.
4. Invest in technology
Now is the time to check if you have the most recent and efficient technology you can afford to perform your day-to-day business. Look at updating anti-virus and anti-malware programs and updating accounting and administrative software. Investments in technology are tax-deductible at the end of the year as well.
5. Marketing
Marketing is the engine room that helps grow sales. Develop a strong marketing plan for the new year. Invest in people and marketing software if you have the budget to do so. If you can’t stretch to a full-time marketing employee, consider agencies to help you with SEO, developing a robust sales funnel, PR and advertising where appropriate. There are also online options such as Salesforce, which has sales and marketing solutions for companies of all shapes and sizes.
6. Business Plan
To kick some goals, you’ll need a game strategy on how you will achieve business growth. Remember to make them SMART goals: specific, measurable, achievable, relevant and time-bound. Think about what you want to achieve and ensure you revisit the plan frequently throughout the year to keep yourself accountable. Most business review and adjust plans, as appropriate, quarterly, with monthly team check-ins to keep the business on track.
