Are you preparing for growth next year? Here are nine strategies for improving profits, boosting cash flow and reducing stress this holiday season.
Believe it or not the end of 2013 is just around the corner. The New Year has a habit of creeping up fast, so don’t let yourself be caught out.
According to RSM Bird Cameron, more than 60% of small businesses expect their business to grow in the coming year.
The company's national head of business solutions Andrew Graham urges business owners not to waste the opportunity to make their high hopes a reality.
“To make the most of this optimism and ensure they have a clear path to growth business owners need to have strategies in place to end the year and start the new one in the best shape possible. This will also ensure that business owners can make the most of the holiday period.”
He offers the following nine tips to improve profits, cash flow and reduce stress levels during the holiday season:
- Set effective goals: The beginning of the new year is an ideal time to review goals set at the beginning of the financial year, ensure you are on track to achieve them and put in place an action if you can see areas that are not working. Important things to consider include retirement planning, present and future investments, maximising your superannuation scheme and reviewing assets
- Complete a GST health check: Small businesses are in danger of losing time and money because of unreliable or out-dated business systems causing them to incorrectly report GST.
- Update your business plan: Make sure your business plan is updated regularly to reflect changing market and economic conditions. Keep in mind a solid business plan is critical in meeting financing requirements as many industries face increased scrutiny from government and financial institutions requiring a much higher quality of management reporting and strategic planning to support funding applications and reviews.
- Strategically plan end of year gifts and entertainment to key clients, prospects, suppliers and business partners: This will strengthen relationships into the New Year rather than simply being a cost of doing business.
- Carefully plan end of year staff parties to reward and recognise efforts for the year: Remember your workplace obligations to provide a safe environment for the event in relation to alcohol and discrimination.
- Review sales, marketing and promotion plans: Make sure plans are optimised to help achieve the best results not only during the holiday season but well into the New Year. Ensure staff are aware of the targets for each week and be proactive in monitoring and addressing shortfalls.
- Review staffing plans and confirm acceptance of the rosters by all staff: Annual leave plans need to be balanced and finalised as early as possible to ensure the business continues to operate effectively. Decide if you will shut down your brokerage over the Christmas and New Year period to use up staff annual leave balances during the quiet time.
- Review the use of finance products for effectiveness: Overdrafts, premium funding, lease facilities and cash flow funding products can all be excellent tools to help match a business’ cash supply with planned outlays, and may be especially useful in managing cash flow throughout the holiday season.
- Remember that you deserve a break as well! Plan to take advantage of any public holidays or other time off to protect your own health and wellbeing and reduce the chance of illness disrupting your business activities.
