Article by Jane Tweedy, Business Advisor, Western Sydney Business Centre
With another financial year end over, it’s a great time to review where your business is at, and where it’s going.
Accounting and tax
If you don’t know where your business is at for the year, your bookkeeping may need addressing. You may need to engage external help and/or move to an accounting system. Remember your accountant is not responsible for your tax return accuracy – it is you! If you’re not sure about something, ask, and remember they’re human – they may not be right!
Strengths, Weaknesses, Opportunities, Threats (SWOT)
Evaluate the wins you had in your business and the strengths that you can leverage off. Weaknesses (including not hitting financial plans) either need to be accepted or taken as an opportunity to improve in 2017/18. Opportunities and threats are typically external to the business, and monitoring allows us to avoid a Kodak moment!
Is your business structure still best for your business? Many start out as a sole trader or partnership, however with the ATO tightening up on what is deemed an employee versus contractor, it can remove the issue when someone hires you to provide a Business to Business (B2B) service if you are a company.
Pricing and packaging
When did you last put up your prices? Have your costs increased? Do you price your labour into your product or service correctly? Can you package to provide more value, but using less labour? Can you create products to complement your offer?
Are you on top of your customers paying? Check out the CollectMore 2.0 app if this is a problem for you. Without money (cashflow), your business will struggle.
Forecasting and planning
Take this time to update or create a living business plan, to help you achieve your goals and allow you to make conscious decisions. For instance it may be time to seek external help.
If any of this makes you feel uncomfortable, it’s a great time to utilise the services of a business advisor. Business Connect funds four hours of advice for all small business owners – please make sure you utilise this service!