The race to the end of the year can often mean franchisors don’t feel they can take the time to plan for the new year. Yet effective financial planning is critical to ensure your business’ ongoing success. Taking a few moments now to complete these key tasks can save time and money in 2015.
1. Review your products and services
Do your offerings still appeal to your target market? Check to see whether there are any products that previously performed well and have started to decline. It could be time to retire that product or find ways to refresh it. Also start planning for seasonal peaks and troughs as they apply to your business, for example, Easter, Mother’s Day, Father’s Day and school holidays.
2. Review your pricing
If you haven’t raised prices for a while, now may be the time to do so. You should have formal price review procedures in place including responding to competitor pricing changes and specials.
3. Review stock levels
Make sure you have enough stock on hand to satisfy anticipated demand but avoid carrying too much stock at one time. Slow-moving stock could be liquidated as bargains or bundled with other products to add value and increase turnover.
4. Review sales, marketing and promotion plans
Review the results of campaigns that were undertaken during 2014 and consider whether they should be repeated, scrapped or changed for 2015. Ensure staff know what the targets are for each week and be proactive in monitoring and addressing shortfalls.
5. Review staffing and rostering
Make sure all staff are aware of what’s required and annual leave plans have been finalised. Have a contingency plan for unforeseen staff absences during the holidays.
6. Protect your business
Review fraud and theft protection systems and make sure all staff understand their responsibility to be vigilant.
7. Cash flow management
Review debtor lists and actively chase all overdue accounts. Managing your cash flow throughout the year is vital. Make plans for collections and regular reviews.
8. Review your debts
Overdrafts, premium funding, lease facilities and cash flow funding products can be excellent tools to help manage your finances but make sure you choose the right ones and use them effectively.
9. Set goals
The beginning of the year is the ideal time to start working towards goals such as present and future investments and expansion or retirement planning.
10. Update your business plan
Make sure your business plan reflects changing market and economic conditions. Make sure it’s ready for scrutiny from any government agencies or financial institutions you deal with.
11. Look at ways to reduce your tax burden
For example, ensure superannuation payments are made on time, both for employees and for your personal super. Review your finances in general to ensure your business is structured correctly and your liabilities are minimised.
12. Remember that you deserve a break
Plan to take advantage of public holidays and other time off to protect your own health and wellbeing, and reduce the chance of illness disrupting your business activities. RSM Bird Cameron’s latest thinkBIG study revealed that 30 percent of business owners are planning to have just two weeks or less time off in the next 12 months. Planning time off during slower periods throughout the year to rest and rejuvenate is important. It gives business owners the opportunity to reflect and refresh their plans without the distraction of day-to-day workload. It helps them get a fresh perspective on the business.