How good is it being in business and having two new years to celebrate?! Yes, we’ve rung in the new decade, but now it’s time to get ready to ring in the start of a new financial year!
By the time March rolls around we are usually all head down, bottom-up in ‘stuff to do.’ While that’s usually a good sign business is going well, it makes it easy to forget the bigger picture. As the business owner, it’s your responsibility to keep sight of the end goal.
While there are a couple of big macro issues bubbling away, we do expect them to be relatively short-term, although for some a little painful. The good news for just about all of us is we just need a couple of percent of the whole target market to succeed- so stay firmly focussed on your target segments. And reflect back on last week’s newsletter for tips around flourishing even when the macro environment gets a little challenging.
This week’s email serves to act as a timely reminder to stop and take time before the end of this month to recommit to your strategy. The start of a new financial year is the perfect time to refocus on your vision, tweak it if needed, and set some aspirational resolutions for how you will get there.
Keep reading for some guidance on how to start the new financial year with laser focus.
Planning for prosperity
It’s time to pull out the big guns. Those two meaty questions that will determine how and where you steer your business for this next financial year.
- How much profit do I want to make in FY 2020?
- What is my end goal? i.e. When do I want to sell my business and how much for?
Take the time to check your answers haven’t changed since the last time you asked yourself them, and then share these answers with your accountant. You may be surprised to see how a change in answer could change your accounting decisions.
Identifying your opportunities
Now you know where you’re going, you’re going to want to get there as fast as possible. Here are some areas you might want to consider making changes in.
- Looking to recruit more customers? You need to really understand customer journeys and effective return on investment marketing. Grow Digi can help.
- Looking to create efficiencies in business costs? You’ll need to ensure every dollar is being stretched for the best return. Consider energy costs, insurance premiums, lending rates & HR overheads
- Looking to get to your customers before your competition does? In today’s digital world great SEO gives you the loudest voice and the brightest signage. Make sure yours is fully optimised.
- Looking to bring in specialist expertise? Outsourcing allows you to hire an expert for as little or as long as you need. You’re drawing on the benefits of a specialist, but minus the overheads. Grow NZ has a number of proven partners who can help.
Know your competition
A great way to really understand the competitive landscape your business will be operating in during 2020 is to apply the Porter’s 5 Forces model. This model identifies and analyses five competitive forces that shape every industry and helps articulate your industry’s weaknesses and strengths. You can use the results to map out your competition and secure your company’s long-term profitability. Check it out here.
If you commit to just one thing this financial year…
…Make it promising yourself to make every business decision in the context of the two big financial questions you asked yourself at the beginning of this email. Once you have that clarity and the discipline to live by it – you’re on your way. And hey – if 2020 is the year you want to sell your business, chat to our partner, Link, for advice first.
We’ll be back soon with more advice on ways to partner with your accountant to achieve your FY 2020 business goals. Stay tuned.