EOFY resolutions for your small business
Welcome to the 2017/18 Financial Year!
It’s already the end of July. By now your business resolutions should be set for the financial year! Give your business a thorough health check. Here are some recommendations:
- Do a mini financial review by conducting basic calculations on liquidity, solvency, profitability and return on investment. Compare with previous annual figures.
- Do you have a strategic plan? Now is the time to create one or re-evaluate your existing plan if you have one. You will need to take an honest look at your business mapping out critical success factors, goals, strategies and action plan.
- Create a budget that aligns with your strategic plan. Ensure you allocate resources to achieve your plan’s objectives. Remember that you should regularly check the budget against actual results and variations. This is where the gold is!
- Prepare a cash flow forecast ensuring your forecast aligns with your budget. Monitor your forecast regularly.
- Review your business’s profitability. Consider staff productivity, production processes, supply chain, use of business assets and costs.
- Evaluate you finance options. If you borrowed from a lending institution, now is the time to meet with your lender to discuss your business plans for the upcoming year.
- Create or re-evaluate your marketing plan. Create a plan which draws on the current trends and opportunities.
- 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.
If you need help with any of these plans or directions, speak to us today on 07 4151 8898.