Love your business and watch it grow!
Not sure where the year has gone. We’ve just started a new financial year and we’re already into August. Spring is just around the corner.
Like any new year, you should also have your business resolutions in place for the new financial year! It’s time to love your business and give it a thorough health check and review. Here are some ideas:
- Do a mini financial review by conducting basic calculations on liquidity, solvency, profitability and return on investment.
Compare with the previous two years’ figures – so you can spot any trends.
- Does your business have a strategic plan?
Now is the time to create one or re-evaluate your existing plan. Take an honest look at your business, mapping out what worked, what didn’t work, your goals, strategies and action plan for the coming year.
- Create a budget that aligns with your strategic plan.
Ensure you allocate resources to achieve your plan’s objectives. Remember, you should regularly check the budget against actual results and review any variations. You should be checking this on a monthly basis.
- Cash is King.
Prepare a cash flow forecast, ensuring it aligns with your budget. Monitor your forecast regularly.
- Review your business’s profitability.
Is it where you want it to be? Factors to consider – staff productivity, production processes, suppliers, use of business assets and costs.
- Based on your strategic plan and budget.
You make need to meet with your banker to discuss lending options for the upcoming year.
- Be prepared by creating (or re-evaluating) a risk management strategy.
Factors to consider include relying too heavily on a small number of major customers, over-reliance on a single supplier, selling on credit, fraud and cyber security.
It’s important to note that the above focus more on the financial side of the business. You also need to consider your advertising and marketing plans for the new year, to get your business name out there, and into the minds of existing and potential clients.
By taking the time to review these aspects, you are putting some love back into your business, to ensure it grows during this new financial year and beyond.
DISCLAIMER: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.