With the new-year upon us and hopefully a chance to rest and recuperate we have a unique opportunity to reflect on how our business is going and what we can do to improve it.
While we all have a feeling on how our business is travelling without some accurate figures we are really working in the dark.
Are our management accounts up to date? Do we have a budget to compare those results to? Have we compared them to the same period last year or to business benchmarks?
All these things will give us hard data that we can use to make appropriate business decisions.
At this time of year when trading can slow down for a lot of businesses the old saying that “cash is king” has never been truer. With our quarterly commitments being payable in January and February, and increased pressure from suppliers it is more important than ever that billing and collection procedures are in place and adhered to; are we billing regularly and on a timely basis; have we reviewed the aging of our debtors and taken appropriate follow up action, including in extreme cases, legal action to ensure recovery?
When running a business we often make the mistake of spending our time working in, rather than on, our business. Are there tasks that can be delegated to others to create the time we need for business planning, promoting our business and most importantly for ourselves and family?
Networking groups can be an awesome way to promote your business but often these group turn into social gatherings with little business being done. If you are part of a networking group now is the time to consider the benefits and value you have received from both the time devoted to the group and membership fees paid.
Something we can all be guilty of at one time or another is “making do”. Whether that involves a piece of out-dated equipment or an employee that just isn’t working out, now is the time to make those, often hard, decisions for the long term benefit of your business. With tax concessions for a small business including an instant deduction for equipment with a cost of less than $20,000 there’s really no reason to make do anymore.
If any of these comments ring bells with you and you would like to discuss them further then call us at Gillespie & Co and our experienced team members can help you.