8 Tips for 2012

02 January 2012

As we move forward from the GFC, (which has affected businesses in different industries in various ways) now is the time to look to the future and prepare your business for the times ahead.

Following are 8 simple tips to give your business the best chance at success in whatever lies ahead for your industry:

1. Budgets

Always important, but now more than ever. Relatively small decreases in income and/or increases in expenses can make a huge difference to your bottom line. Picking up on these changes as quickly as possible is particularly important in these changing times. Budgets can be fixed or moving, daily, weekly or monthly – the type is dependant on how your business runs and what works for you. If you don't feel confident in setting the budgets yourself, your accountant will be able to either assist or prepare it for you, and advise on the type that is most suitable for you.

2. Keep your records up to date

If your records are only up to date when you have to prepare a BAS form then you are using historical data. To be in the best position to follow your budgets and act on changes quickly, your records must be as current as possible. To do this set up a system to ensure that the records are updated regularly

3. Marketing

In some industries this is an expense that has a very long lead time to actually getting customers through the door, so it's very tempting to make this one of the areas to cut costs in. This is actually counter productive, because when the economy starts to move, you want your business in the best branding position you can possibly be in so the people spending money think of you FIRST. Rather than cutting the amount you are spending on marketing, do some research on new customers and where they heard of you so you can make sure your marketing dollars are being spent in the most efficient way possible.

4. Watch your debtor days

This is the average time taken by debtors to pay their debts to you. It is calculated by dividing your total debtors figure by the last 12 months sales and multiplying by 365. If this number starts to creep up, you need to tighten your collection processes immediately as this can severely affect your cashflow. Your accountant can do a 'what if' analysis in this area to show you how your business is affected by changes in this number.

5. Customer analysis

Undertake surveys of your customers to see what they like about your business and where they think you can improve. Are you holding the stock or offering the types of services that they are interested in buying? A word of warning: when you undertake this type of survey be prepared to ACT on it. There is nothing worse, from a customer's point of view, of taking the time to fill in a survey and then seeing nothing change...

6. Make sure you are taking the time to work ON your business, not just IN.

A business with no clear direction or business plan is a bit like a ship without a rudder. How can you expect your team to be working towards a common goal if nobody (including you) knows what that goal is? Organise some time every week to do some planning for the week ahead, and then more time periodically to set your goals and assess where the business is going. Above all, communicate these goals and values to your team so that you are truly working together towards the same goal.

7. Time management

Whilst it's tempting to 'do it all yourself', for you to be able to achieve time to work on your business, your time management skills must be efficient. Remember the three D's – for every task make an assessment: 1. Dump it – does it really need to be done or can it be dumped? 2. Delegate it to someone else - do you really need to do it yourself? 3. Decide when – if it really has to be done, and you can't delegate it to anyone, then can you schedule it into your diary at a later date or does it need to be done now? There are many good time management courses out there – pick one and take lots of notes (and don't forget to IMPLEMENT the changes).

8. Get a business coach

While all the above tips will certainly put your business in a strong position to succeed, sometimes you just need that extra push to make it happen. A business coach is very similar to a Personal Trainer at the gym. Studies show that you will get better and quicker results working with a PT, than working on your own (why else would the Hollywood greats spend all that money on PT's, chefs etc?) The same follows with a business coach. Money spent on a coach will generally be returned in spades by the improvements in your business, as long as you follow the plan you both agree on.

Your accountant can assist you with most, if not all of the above. So give them a call and see how they can partner with you and take your business to the next level of success.

Posted under: Performance