We hope that all of our clients are planning a break in the weeks ahead – it’s important to take time for yourself and your family! While you’re surfing, travelling, watching the cricket or relaxing by the pool, give a thought to the year ahead.
What are the things you need to do to make next year profitable? We give you some thought starters with our top five new year’s resolutions.
1. I will delegate more
“What has this got to do with profitability?” I hear you asking yourself. The more time you are spending keeping tight control of absolutely everything around you, the less time you are spending servicing your customers and planning the next phase of your business success.
2. I will make business planning a weekly event
When we use the term “business plan” we are not talking about that long-winded Powerpoint presentation you prepared for your bank manager. What we are referring to is the 3-5 key objectives that you have set for your business.
Make a weekly diary appointment to review those objectives. In each meeting (even if its only with yourself) ask: How am I progressing? What should I be doing this week or month to stay on track?
You will be amazed at how your profits will increase if you can keep yourself focused on the main game. For more see our guest blog on business planning by Neil McVicar.
3. I will find and eliminate waste
The “reduce-reuse-recycle” motto is not just a path to a sustainable environment; it can also be a path to a more profitable business. It’s obvious isn’t it? Less time and money wasted, more flows to the bottom line.
Why not spend a day when you get back from your break taking a hard look at what gets wasted in your business?
Consider your stationary – can you switch to cheaper recycled paper? Are you printing on both sides?
Consider your packaging – are you over-packaging?
Consider your processes – are staff engaged in activities that don’t genuinely add-value?
4. I will collect debts more quickly
Strictly speaking how quickly you collect your debts impacts your cash flow but not your profits. However, the better your cash flow the more funds you have available to invest in business growth. So your profits do rely on you paying attention to debt collection.
Set a goal for yourself that you will always invoice quickly and send regular reminders and statements. Consider what you can do to make it easier for your clients to pay. And check out our six steps to avoiding bad debt.
5. I will get control of my stock levels
Every dollar you have invested in inventory is a dollar that you cannot invest in marketing, product development or other activities that might grow your profits. Make this the year that you get your stock levels under control.
We recommend that you review your current stock levels early in January and move quickly to get rid of any excess stock. But perhaps more important consider reviewing or establishing your stock control policy. Can you negotiate better deals with your suppliers? Can you tighten up on your buying?
We know….it all sounds exhausting now. Take that break we mentioned at the start and mull these over. Even if you only tackle one of these resolutions come January you will be putting yourself on the road to better profits.