A new financial year has begun, marking the perfect time for business owners to evaluate their position and make necessary changes for success. The economic landscape has presented businesses with challenges, such as rising interest rates, soaring fuel costs, and increasing consumable expenses. Some economists are warning of a potential global recession, causing concern among business owners. Rather than succumbing to the fear of uncertainty, business owners should take this time to evaluate past performance and plan for growth while managing costs effectively. Below is our six-point checklist to position your business for success in the new financial year.
1. Cost evaluation (and, where necessary, reduction)
Reviewing costs for the previous year is an essential first step in reducing expenses. Prices across the board are rising, and exploring options like purchasing in bulk quantities to save money or eliminating unnecessary subscriptions or products will have an impact. Knowing your costs will also help you negotiate with suppliers and providers, possibly resulting in more favourable payment terms for the new financial year. The goal is to trim non-essential expenses and reinvest any saved funds into initiatives that will yield rewards for your business.
2. Cash flow management
Maintaining strong cash flow is always crucial for business growth and sustainability. In the new financial year businesses should update cash flow projections and plan for any potential downturns. This will help safeguard against shortfalls. Your business should have funds to cover overheads, tax obligations, wages, superannuation, and other bills. Regularly update your cash flow projections to avoid the risk of trading while insolvent, which can lead to dire consequences like liquidation, personal bankruptcy, or director liability.
3. Time management and streamlined processes
Work smarter, not harder, by evaluating how to streamline tasks and processes. This will allow business owners to plan strategically rather than be consumed by day-to-day running. Streamlining can be aided by apps or software that can help simplify operations. This may look like creating templates for important documents or even implementing project management systems. Wherever possible, automating and organising your records is best practice.
4. Investment in technology
Investigate whether your business is equipped with the latest and most efficient technology (within your budget) to help it run smoothly. Take the time to prioritise the security and productivity of your business by upgrading any anti-virus or anti-malware programs, as well as accounting and administrative software.
5. Strategic marketing
Marketing is the engine that drives sales and business growth. Developing a robust marketing plan for the new financial year will increase your businesses chance of success. If you’re not already doing so, consider whether investing in skilled personnel or marketing software is feasible. If a full-time employee is not possible, look into agencies that can assist with SEO, sales funnel development, PR, and targeted advertising.
6. Sound business plan and SMART goals
When preparing new financial year goals for your business, remember to keep them SMART. Your business plan should outline specific, measurable, achievable, relevant, and time-bound (SMART) goals. Regularly revisit these throughout the financial year and adjusted them quarterly to ensure they are still in alignment.
As the new financial year begins, it’s essential to prepare your business for success, particularly in this dawn of economic uncertainty. By following the checklist above, you can position your business to withstand economic pressures and even succeed despite them.
At NMC Finance, we understand the challenges that business owners face and the importance of strategic financial planning. Our team of experts is dedicated to helping businesses like yours thrive. Whether you need assistance with business loans to fund growth opportunities or equipment finance to upgrade your operations, we are here to support you every step of the way. Get ready for the new financial year by completing our business checklist and contacting our team for any finance needs.
* This blog is intended for general informational purposes only. For personalised advice tailored to your unique financial situation, please contact NMC Finance.
