How often do you tidy up your business finances? As the end of financial year rolls by again, now is a great time to undertake a bit of business housekeeping.
The stresses of running a small business often see us rushing, unprepared, towards June 30th. It’s the time when we draw a line under our business finances for one year, take a deep breath, and plunge into the next.
This year, before holding your nose and leaping into July, why not take a moment to dust off your finances and begin the year with a fresh outlook?
Here are 5 small business growth strategies to get you started.
Insurance
Get help understanding your compulsory business insurance requirements by visiting the Australian government’s business website, www.business.gov.au.
The site can help you understand your compulsory along with other covers you should consider, such as personal insurances to protect yourself, your income, and your family in the event you become injured or too ill to work.
In addition, there are policies to protect your business premises, your stock. and machinery.
If you’ve had business insurance for a while, it might be worthwhile to shop around and see if there are better deals to be had.
Tax Planning
The start of a new financial year is perfect for developing a forward strategy. Get and stay organised throughout the coming year start by understanding your industry’s regulatory obligations and entitlements. Look at government concessions, asset write-offs and deductions.
Stay up-to-date with compliance responsibilities like Single Touch Payroll, effective from 1 July 2019.
To prepare your small business for growth this year you should:
- analyse your profit and loss: monthly, quarterly, annually
- track revenue to ensure billing and collecting provides adequate cash flow
- calculate the cost of doing business
- devote more time to activities that are the most profitable and help grow your business
Your tax accountant can help you put a system in place that will keep your tax records organised and up-to-date throughout the year. Why not call us to arrange a time to talk it through?
Systems Optimisation
Now is a great time to cast a critical eye over your business procedures, especially if you’re doing things a certain way because that’s how they’ve always been done.
Are there:
- better/faster/more efficient ways of doing things?
- technologies to simplify processes, such as point-of-sale (POS) systems?
- ways to safely bypass process bottle-necks or duplicated steps?
- ways to automate manual processes like running reports or paying regular accounts?
Business Tracking
Regularly reviewing business performance, trends, and cash flow can eliminate surprises by spotting potential problems and identifying supply and demand patterns.
You can:
- analyse data from previous years or seasons
- look for peaks and troughs in sales/turnover/productivity
- identify what worked and what didn’t
Plan To Grow
Running your own business is hard work, but it’s also one of the most satisfying things you can do.
Richard Branson once said,
“A business is simply an idea to make other people’s lives better.”
So, start this new financial year refreshed and set yourself up to make your life, your family’s life, and your customers’ lives better.
Once you know where you are, you can look for strategic ways to move forward and grow your small business.
Whatever your small business’s growth strategy, be sure you have the resources to support it.
Reflect on whether you need to invest in, reduce or change: machinery, supplies, systems, processes or specialist staff?
Now, update your business plan and review it regularly to stay focused on where you’re heading.
For assistance with small business growth strategies specific to your business, book a call with Laura Elkaslassy or Michael Samu our Certified Profit First Professionals. They can help you get your business from where you are, to where you’d really like to be.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs. Speak with a tax accounting specialist (such as TBFG) who is up-to-date with applicable deductions, tax law, and business structuring to get you the biggest return on your EOFY tax assessment.
