A small business step-by-step guide to financial freedom, reduced stress and business success.
New Year’s resolutions: we all love to make them but how many of us are following through? From dramatic weight loss goals to clearing debt or saving for a first home, personal goals generally start well, but statistically, 80 per cent of us fail by the second week of February.
The good news for businesses however, is that from 1 July it’s a new financial year and we get to start over. Wipe the slate clean, set new goals and with a little help, see them through. With lack of accountability being a common pain point with many of our new clients, we firmly believe that with a little coaching, business owners can improve their company’s financial position, reduce stress associated with taxes and minimise business risk.
If you are looking to turn over a new leaf and kick some serious business goals this financial year here are our top five easy (and non-time consuming) solutions for improving business success:
- Lodge on time
We understand that the day-to-day running of a small business is all consuming, however we strongly recommend lodging on time to reduce audit risk. Schedule the time needed to make this happen, if needed set an interruption free morning by turning off your email notifications and forwarding your calls. Prioritise lodging your returns and other submissions on time. Up to date data is also good business acumen for decision-making and forecasting for the next financial year and a good way to start the new year afresh.
- Be accountable
Set periodic reviews of your business performance with an external provider such as your accountant or business advisor. This enables you to evaluate how you are tracking financially and make proactive decisions in real time. Often many small businesses go a full financial year without seeing or speaking to a financial expert for a check-up or review. We recommend quarterly catch ups to ensure your business continues to succeed.
- Find a business mentor
Mark Zuckerberg was mentored by Steve Jobs, Bill Gates by Warren Buffett and Lady Gaga openly calls Elton John one of her personal and professional guides. The moral to this story is that no one is above seeking the expertise and advice of a trusted mentor or coach. A mentor can provide knowledge and guidance to overcome business challenges. Mentoring also offers a platform to discuss pain points within your business and access objective advice on how to improve. A mentor can be your accountant, a previous boss, a member of a business association or someone you admire within your business community. Think of a mentor much the same as a personal trainer – you do better with one, then without.
- Review your business structure
Ensuring your business is structured correctly can save you money and stress. The four most common business structures in Australia are sole trader, partnership, company and trusts. Your business structure can determine your tax liabilities, responsibilities as a business owner, potential personal exposure, asset protection and ongoing costs. It is a good idea to speak to your accountant or financial advisor on an ongoing basis to ensure you are structured correctly.
- Minimise your business risk
Access to good advice and the right business documentation will reduce you or your businesses exposure to risk. Identify, analyse and manage risks associated with your business by performing an internal audit and/or creating a risk management plan. Start online by searching for a template or speak to us.
At VJC we believe our professional services, expertise and advice can provide our clients with their version of financial freedom. We protect you and remove your pain points in life and business. If you need help with any of the above resolutions, contact our lead adviser, Adrian Chaudhary about how VJC can help you to achieve your NY financial goals. You will very likely improve your life, boost your business performance and achieve your goals. Sometimes the simple step of engaging and paying for a service is the best motivator to achieve engagement and reach your goals. All of us are guilty of putting off tasks that lead to change in lieu of routine duties, make this FY your time to change, because to quote the great Albert Einstein: Insanity is doing the same thing over and over again and expecting different results.
Invest in solid advice and take your business to the next level, undertake our free accounting health check list here and we’ll call you for an obligation free chat on how we can help you to achieve your business goals and ultimately, life success (sadly, no promises on the weight loss).
