Capitalise on your hard work. Now is the right time, and here is what you need to do:
As we head into the new financial year – it is the right time to ensure that you captialise on your hard work and put in place strong financial routines to ensure that your business can grow and achieve its goals.
Let me share some preparatory manoeuvres to help you to look at what I would look at.
Things that you can control:
Wages – Assess resourcing requirements appropriate for the level of income.
- What is the mix of permanent staff and contractors
- What are the Full Time Equivalent wages for part time staff?
Rent – Review space optimisation.
- Do we need to move? Or should we sub-let or share
- What is the lease term? Are there any restrictions?
Are you charging the right price? In fact, you might ask: What is the right price?
- Review your productivity levels.
- Know your running costs, and budget to repay directors’ loans, fund new head-count and growth plans.
- Set a reasonable profit contribution margin.
- What will the market pay? Do you know how to use benchmarks?
- Look beyond the hourly rate – what other pricing models could you implement and how could your clients benefit
- Review your rate cards and client agreements.
Review your financial processes & reporting routines – weekly, monthly, quarterly, half-yearly.
- Start this new financial year with a strong reporting routine, lock in your dates.
- Be clear on the focus of each meeting, agree metrics and responsibilities.
- Identify a designated driver – to propel your team towards achieving your goals and stretch targets.
The time is now to put these plans into action – schedule an hour with your team to review the above, and conclude your meeting with an agreed plan of action for the year ahead.
Remember, something is better than nothing: Set some goals and seriously monitor them – agree responsibilities and put dates in the diary!
I hope that the above gives you some clues on how to move forward, however, I know only too well that sometimes the financial side of running a business can be tough, confusing, and at times quite overwhelming – so please don’t hesitate to pick up the phone and call me – I’d love the opportunity to help, and a quick call might be just what you need to steer you away from the rocks and ensure that the new financial year is a success story.