We often find in business that many entrepreneurs and business owners are moments away from realising the potential that a few small changes in their modus operandi (or “method of operation”) can have on their business. This is without mentioning the amount of planning and strategy that can be used for significant tax savings if implemented before 30 June.
We recently put together a webinar with Paul Dunn of B1G1 into the “7 Things Business Owners MUST Implement Before 30 June”. Those seven things are:
Tax Planning Strategy
This is an opportunity where, when executed correctly, can save businesses tens of thousands of dollars. A tax planning strategy must be implemented before the financial year ends for the greatest effect. Correctly structuring distribution of profits, working out what expenses to pay this side of the financial year, or after – and many more opportunities are considered in a tax planning strategy.
Business Structure Review
Before the financial year ends is a perfect time to review your current business structure. Any changes that need to be implemented can be set up ready for the new financial year, and it also gives and opportunity to weigh in on the tax planning opportunities above. The correct business structure is essential in many aspects of running a business.
Real Time Accounting Software such as Xero
This is a must to get up to date with the changing times. If you haven’t already adopted real time accounting software, now is the time! Real time accounting software is best implemented at the start of a financial quarter, the next of which is 1 July. There is plenty to have ready by what we call the “conversion date”, so it is best to start planning for this at least two weeks prior to year end.
A 90 Day “Change Up” Action Plan
To set yourself up for the financial year, it’s best to break down the year into actionable 90 day quarters. The task then is to identify important numbers for each 90 days. In the book ‘The 4 Disciplines of Execution’, co-author Sean Covey talks about the “WIG”, or “Wildly Important Goal”. This is the key number or key metric that will have the greatest impact on your business. This kind of business-wide, laser focus has turned big businesses around from losing millions of dollars, to record breaking profits. Brainstorm some key numbers for the next 90 days, and write down the greatest one, with projects to implement to help you get there.
A One Page Strategic Plan
Another management and employee engagement tool is an effective business plan. Most businesses will have started with a 30 page plan, that has never been updated, let alone actually read through since is was established. Verne Harnish has introduced to the business world, his one-page plan. This is all of the key metrics, goals, SWOT analysis and many more strategies of a business on a single page. Each team member in the business also has a tailored section of the one-page plan, specific to their role in the organisation. This is a no-brainer to implement to set your business up for a successful financial year!
Budget & Cashflow Forecasts for FY 2015
If you don’t have a budget and cash flow forecast for the 2015 financial year, you’re going to have a bad time. Budgets and cash flow forecasts give you the ability to sleep easier at night, knowing in advance whether or not you’re going to be able to put food on the table. Not only this, it allows time in advance, if there is something coming up which you need additional cash to account for.
A Management and Accountability Schedule
Finally, once you’ve put together your strategic one-page plan, you have your budgets and cash flow forecasts ready, you’ve got your wildly important goal for the next 90 days, it is important to then set yourself some management and accountability rhythms. What we mean by rhythms, is meetings or certain dates that you will be accountable to your management team, or your advisers.
A lot of small business owners hold their team members to extraordinary levels of accountability. While this is great, the business owner often lacks accountability to someone else, which is a critical driver of business performance.
Before the financial year starts, identify an appropriate adviser who understands your business to keep you accountable on a regular, planned basis.