4 strategies for business success

Your business advisor is a reliable source of guidance in high-stakes situations, covering goal and performance alignment, tax responsibilities, strategic planning, operational efficiency, and compliance.

This new financial year, consider the following four areas:

1.      Compare the financial performance of the company with its goals

At the beginning of the current financial year, you should have created a budget outlining your anticipated revenue, costs, and overall financial performance. Now is the time to compare the projections you made 12 months ago with the actual figures in your financial statements.

If there are significant differences, use the lessons from your inaccurate estimates to inform next year’s budget planning. Look into your key performance indicators to gain more insights into the variations.

Evaluate how major decisions made during the year, such as launching new products, entering new markets, relocating premises, refinancing, restructuring, expanding, or cutting back, have financially impacted the business.

2.      Future-proof your business

Annual budgets and long-term financial forecasts are vital for establishing both current and future financial objectives. It is crucial to base them on existing data and developing trends to accurately pinpoint potential risks such as economic downturns, market volatility, inflation, and interest rate changes. Your forecast will subsequently empower you to confidently discuss risk mitigation strategies with your business advisor, including enhancing risk controls, reviewing insurance cover, diversifying revenue streams, and establishing a solid financial cushion.

Succession planning is also a critical strategy for the future. Engage in discussions about succession planning with your business advisor to ensure that your enterprise remains in capable hands and financially robust in the long term.

3.      Stay up-to-date on legislation and compliance

Ensuring compliance with legal obligations and maximizing government incentives can be time-consuming. However, a skilled business advisor can expertly navigate these sectors on your behalf, keeping you up-to-date with ease, which may affect your business.

Compliance

Failure to comply with all local, state, and federal regulations may lead to expensive penalties and harm to the business brand.

Government incentives and support

New government programs may benefit your business this EOFY. Use the government’s grants and programs finder to identify funding opportunities in areas such as low-carbon product manufacturing, digital connectivity, primary production, and over 600 others.

Environmental, social and governance (ESG)

Consider any recent ESG updates and how your business can align with ESG principles. This includes reducing carbon footprint, promoting diversity and inclusion, and improving transparency and accountability in corporate governance practices. These steps will enhance your brand and ensure that you are able to remain a part of the supply chain of larger businesses, given the proposed mandatory reporting on the sustainability of their suppliers

4.      Improve operational efficiency

EOFY planning provides the perfect opportunity for business leaders to prepare for operational enhancements in the coming year. Focus on three key areas when reviewing operational efficiency:

Streamlined systems

Scrutinise areas where methods could be improved or rationalised in order to increase productivity or reduce costs, possibly through automation or outsourcing.

Technology investments

Integrating new technologies, such as cloud computing, AI, or industry-specific tools, could improve business capability.

Employee training

Employee training programs could enhance skill sets, increase efficiency, boost employee engagement and reduce staff turnover.