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Tag: strategy

8
Jan 2018

Business New Year’s Resolutions

New Year’s resolutions are easy to make; the hard part is sticking with them.  Business New Year’s resolutions are no different.

Here are our tips to freshen up your business and renew your enthusiasm for getting your business into shape.

Review your budget – have you stuck to it so far?

Of course you did your business budget back when the financial year started in July, but have you looked at it since? Usually a budget will have considered the changes you wish to make, the KPI’s you wanted to achieve, and targets which aid you in achieving the goal you’ve set.

Now is the time  to look at how you’re actually travelling, and make any adjustments to what you are doing so that you can build on wins or help turn around any losses.

Check health of cash flow – do you need to plan ahead?

December, January &  February are often the months that cause a heavy toll on business cash flow. Generally staff enjoy celebrations and time off so cash flow feels the extra pressure of holiday payments, bonuses, entertainment, as well as all the usual expenses like GST, PAYG, and superannuation outflows.

You may be lucky enough to be in an industry which is at it’s highest cash flow inflows at this time, and if not, you had to plan for it (and may still be doing so). Many of our clients have separate bank accounts where they park cash regularly to cover GST, PAYG, and superannuation so they’re not caught short when these payments are due.

Improve your understanding of your own numbers

We strongly recommend that you learn to understand your Balance Sheet as well as your Profit & Loss Statement (P&L).  Your business is much more than the money you have in your bank account, and ideally business decisions should not be based on cash flow alone.

All your assets, liabilities & equity play a part in making smart strategic decisions, and it’s so important you have the knowledge to check information on these pieces of paper is accurate before you commit yourself to a course of action.

Get your time back

You may have asked yourself “where did last year go?”.  We did too. Many businesses are now taking advantage of new technology and online solutions to make routine tasks quick & easy. The result is that transactions & decisions taking place in the world around you are speeding up, whether or not you join in. Your competitors probably already are.

Give yourself back the time to focus on what will let you achieve your budget & cash flow targets. Avoid the pressure cooker from being out of control.

You may have balked at the cost of an online solution in the past; however, the true cost of not automating is probably much higher. Now is the time to check in on whether you should look at an online accounting solution like Xero which links in to so many apps to make your life simpler, cash flow faster and reporting more accurate.

 

If you would like our help with budgeting (creation or review), cash flow or online accounting solutions, just give us a call on (07) 5446 1226.

 

 

Posted by Sigrid Arundel | Posted in Inspiration, My Accountant Qld | Tags: MAQ Clients, planning, strategy |
21
Sep 2017

Decisions you make in your business

Are your investment decisions working for you? The key to enlightenment is to look at your results. But first let’s get back to basics.

When you are a business owner you can make investment decisions whether you’re aware of making that decision or not.

Lifestyle   The amount of time you use in your day to attend to tasks in your business, as well as the amount of “bleed” you accept all impact your lifestyle, your contentment and your well being. By “bleed” we mean the little things that you do in your own time that somehow need to be done but not intended to do which impact your me time (such as returning that phone call just as the first guests arrive to your BBQ).

Capital   In very simple terms this is the investment you’ve made in the business where you’ve contributed to the business in some way. This might be money you’ve put in over time, the purchase price you paid for the business, the earnings you’ve forfeited to invest further into your business.

Financing   This is the method you’re using to put that Capital into the business. If you’ve not gone on holiday to use the funds for a gizmo for the business, then you’ve funded that transaction and contributed equity to your business (you sacrificed personal cash flows for the business). If your bank gave you the money for that gizmo, then you’ve increased debt in the business and not equity, probably to ease your cash flow. In this case you’re potentially building equity over time, and betting that your investment will yield greater returns than it costs.

Have you considered the investment decisions you’re making and the impact they are having?

What dice are you rolling each day? Better choices are made when you know and are OK with how they roll. Take time out to examine how things stand for you.

Lifestyle   Is your lifestyle satisfactory? Do you get time out from your business? Are you confident choices made while you’re not there are in line with your plans?

Capital   Are you satisfied that you are getting the returns from your capital investments?

Financing   Are in control of your cash flow and satisfied with what’s happening?

If you don’t answer these questions with a 100% positive YES! then you should take some time out to consider your options to improve things.

An interesting challenge is to determine how much money your business generates for you for each hour you invest. If you include all that “bleed” time you will get a clearer view of the real cost to you.

If you have decided you want to improve your situation you don’t have to go it alone. We can help you analyse what’s happening, help you identify options to help you find the best solution for you.

Posted by Sigrid | Posted in Business Planning | Tags: planning, strategy |
21
Sep 2017

Planning with purpose

If your business is your “retirement fund” or your key to a more passive income (that is, you don’t need to be there 100% of the time to make it work), then it’s essential you put some thought into how the business operates now and where it should head in the future.

If you want to take your business to the next level then proactively thinking about your plan will give you the key to taking advantage of opportunities that come your way.

We all know that plans don’t always work out the way you imagined they would; however the process of thinking through potential scenarios means that you are much more prepared to make the best decision for you in the moment that opportunities arise.

When you develop those scenarios and plans there are a few aspects you should consider.

Practicality. This is the actual execution of the plan. Do you have the people, skills, knowledge & resources you need?

Balance Sheet effect. How the plan impacts on your assets & liabilities. Does the plan build strength so that you achieve a return on your investment, get financier support and so on?

P&L effect. How the plan affects your business income, expenses, profitability and bottom line. What line items are affected by the plan and what might you need to do?

Cash flow effect. How the plan impacts your cash flow. Often there’s an upfront cost to recoup over time; how can you best manage that for you?

You’re the expert in the Practicality aspect. We’d love to be your sounding board in the other aspects so that you are clear on the ramifications & can plan your actions to get the best result for you.

Your “retirement fund” will love you for it!

Posted by Sigrid | Posted in Business Planning | Tags: planning, strategy |

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