We know it's still really up and down for businesses due to COVID and the changing Alert Levels, but that makes planning for the year ahead (as much as possible) even more important.
Like any new year we all start off with good intentions but how far we take those intentions or resolutions is often the difference between success and failure. Setting goals for the year ahead takes some planning, but if we want to achieve our goals, both personally and professionally, there’s no time like the present.
To set goals, we visualise what we can achieve when we take certain actions. A good motivator can also be to visualise what happens if we don’t set goals and take positive action.
Think about it this way; if you keep overspending in your business and at home what is the pain you will experience? Not being able to pay your bills on time is one. Interest and late penalties being applied comes a close second. Savings for things like holidays start to pay for business debt which is never nice.
The solution?
Creating a budget and sticking to it. It doesn’t matter whether it’s a grocery shop or buying a new PC for the office. You want to make sure every spend is a good one. If you have a budget where you’re tracking precious income and keeping an eye on expenses going out you’ll know exactly what you can and cannot afford
What to do so you can afford what you want? Work on your business plan.
This new financial year make it a habit to keep working on your business plan or if you don’t yet have one, the only way you’re going to go from here to there (i.e. the reward) is to create a business plan.
Your business plan will help you look at all areas of your business from marketing to financials so you can set yourself goals to achieve. For example, if you need to increase revenue what actions can you take? Write them all down in your business plan as SMART goals. The good news is your business plan is a live document which means you can update it and improve as you go.
One top tip for business planning and budgeting is to find a business advisor. The person you have to answer to when you don’t do what you say you’re going to do. It could be a business coach or your accountant, but it’s a great motivator when you have to answer to someone besides yourself.
Don’t forget about your tax planning (income tax, GST, and provisional tax), which includes when you need to have returns done by, and ensure your payment plan is included in your budget. The pain point? Thinking you have more money up your sleeve for that holiday when in fact you forgot about that provisional tax payment due next week!
Top Tip: To help stay motivated surround yourself with believers who love your drive and ambition. To focus on your budget and business plan - focus on pain points as well as feel goods. If you overspend one week multiply that by 4 for the month and then 52 for the year and the pain of that should be a real kick in the you know what!
If you need us to be your business advisor we’d love to invite you for a cup of coffee where we will help you eat those new financial year goals one bite at a time!
If things have changed drastically in your business over the last 12 months, it might be worth wiping the slate clean and starting a new plan. Check out our clean slate planning blog for more information.
Need helpful templates and guides? Take a look at these informative resource links:
