It’s the beginning of the new financial year, and a perfect time to check how your business is tracking.
There are 4 things you really need to do and questions to ask yourself.
- Personal goals – make sure you take the time to reassess your personal goals. It’s important to make sure your goals are adjusted to meet your current reality in relation to your cost of living, your mortgage and your lifestyle. What financially do your require to live and more importantly what do you require financially to make your dreams come true. Revise them now to make them as relevant and meaningful as possible.
- Business goals and strategy review – taking your personal goals into account you need to consider the position of your business by answering the following questions:
1. Can the business deliver my required personal financial return?
2. Is what got us here likely to be good enough to get us where we want to go?
3. What investment is required to continue to grow my revenue?
4. Are we aligned with the right business partners and advisors to take our business further?
5. Have our goals shifted? How has the business environment changed?
6. How can we innovate to stay ahead (or catch-up with) our competitors?
7. Is there some way we can disrupt the market to our advantage?
8. How do we need to change to be more successful?
9. And lastly and most importantly; do we have a business budget, and a set of key performance indicators (KPI’s) so we know how we’re tracking at any given time?
- Tax planning and financial position – It’s also very important to review your personal and businesses financial affairs by answering the following questions:
1. Have we discussed tax-planning with our financial advisor or accountant? Are there things we could be doing to legitimately reduce or defer our tax liabilities?
2. Are we current and up to date with our tax affairs? And if not, do we have a payment plan in place to catch up?
3. Do we have any cash sitting around we could be investing into our super accounts?
4. Do we have a Self-Managed Super Fund (SMSF) which could be used to help our financial position in the long run? For example, it’s a common practice for SMSF to own the commercial property their business operates from. This can be a very effective tool for long term wealth creation, but you would need good professional advice to set it up.
5. Are we taking advantage of the current tax rules in relation to depreciating assets immediately up to $20k.
- Risk review – Are you serious about minimising risk and potential consequences that can arise if not managed, answer the following questions:
1. Are our insurances adequate? Great time for a review, to confirm we’re not over or under insured, or likely to be impacted by policy exclusions.
2. Are we complying with our Workplace Health Safety (WHS) obligations?
3. Are we fulfilling our duties in relation to the Fair Work Act?
4. Are we Super Stream compliant?
So to summarise, set your business up for success this year through setting goals, planning and executing a well thought out strategy. And most importantly, getting the right team of partners and advisors on-board your business journey. You can’t do it all yourself!
Get excited about your business!
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