A new financial year is a great opportunity to review how you approach your business finances.
It can also be one of the best times to plan ahead and make changes to help improve your business’s success.
So, let’s explore some strategies that may help your small business’s finances and goals.
Prioritise profits
One of your first priorities can be to plan out the year ahead. Consider whether strategies you have used in recent years are still appropriate and review whether you are measuring the right things.
“As the saying goes, if you can’t measure it, you can’t manage it. So, make sure you are quantifying what’s important,” says Andrew Ash, Business Advisory Director for professional services firm HLB Mann Judd.
For example, you could look to check whether the amount you charge for your products and services still means you earn a profit amid rising costs.
If you are not producing a return, it’s important to review your pricing strategy and make changes so you are generating a profit.
“Acknowledge the reality of your circumstances and prepare for a number of different outcomes”
Do a budget
Budgeting and forecasting can be tricky, especially in uncertain times. But there are a lot of known factors for which you can plan.
“Take the time to go through your fixed costs and question them. Check to make sure you’re getting the best price available,” says Ash.
Once you have a budget, you and your team must take ownership of it. This means regularly reviewing it to give you the opportunity to make changes if costs rise or revenue drops.
For instance, you may be able to find a less expensive power supplier and identify deals for buying in bulk.
Look for new business opportunities
A new financial year is a great time to set sales goals, find new customers and develop strategies to win market share.
“Business development is all about progress, and the best way to make progress is to consistently take action,” Ash says.
When you’re defining your business goals, consider factors such as revenue and customer acquisition targets and expansion plans. Having clear objectives will guide your actions and help you stay focused.
Identify and manage risks
Great businesses are realistic and acknowledge their trading conditions. They contemplate alternative scenarios and have a strong understanding of the key drivers within their business, monitor them closely and act decisively when needed.
“Take the time to consider the risks to your business, acknowledge the reality of your circumstances and prepare for a number of different outcomes. Seek advice and build a system to manage and review risks,” says Ash.
A new financial year is one of the best times to make sure your insurance is fit-for-purpose.
Talk to your broker today about your strategies for the new financial year to make sure when risks arise, you’re covered.
Important notice
All information in this article is of a general nature only. This information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete. Information is subject to change.
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