2020 is just a few short weeks away. Before then most of us will take a break, rejuvenate and come back fresh to face another year. But another year of what?
Will it be the same old stuff or will you do things differently and squeeze as much as you possibly can out of the year ahead?
Set some goals
I know, you’ve heard it before but really, how hard is it to write a few down? (I have a list of about 100 things I like to achieve each year.) Split them into business and personal goals.
Your business goals may be to improve your financial management systems, increase your invoice value or introduce a new product or service to capture greater market share. Personally, you might want to lose weight, get fit, get more sleep or take more time out from your business.
Schedule dates throughout the year to review your progress. I’ve been doing this for a while, so I look at my goals every 3 months and this reminds me about what’s important and it keeps me on track. At the end of the year I find it satisfying to cross off goals I’ve achieved, and add new ones for the year ahead.
Stick to the basics
Don’t make things harder than they need to be. Simplicity creates clarity and that will eradicate a lot of time wasting and cost. Your basics might be as straight forward as keeping timesheets so you can actually bill all the hours spent on a job; paying yourself a regular salary and superannuation rather than on an ad hoc basis; or forecasting your sales and expenditures so that you control your business cashflow and personal finances. If you are not making progress, it’s often because you’re not doing the basics. Get advice, engage a business accountant and others in your professional team to guide and advise you.
Build a financial buffer while downsizing your debt. Be smart and use your business profit with purpose, rather than allowing excess cash to sit in your business account. Extract it, invest it, buy income generating assets or reward yourself.
Mix things up
Ensure you engage in activities that help you today (‘water the garden’) while doing other things that result in successful long-term objectives (‘plant some seeds’). Keep up to date with new technologies and laws that impact your business operations and that can affect your profitability and ROI.
Don’t back out
Once you’ve set your goals, do everything you can to achieve them. Make sure you have the right support around you from committed employees to external professionals with specific skill sets. To put it plainly, set out to finish what you’ve planned for 2020.
What you should do next…
Write down your vision for 2020, then share it with someone who will hold you accountable – your partner for your personal goals and your accountant for your business goals.
How to be successful in business is as much about effective financial and operational management as it is about being physically and mentally fit to take on the demands of being in business. At risk of sounding like a broken record, the sole purpose of a business is for it to make a profit and that underpins your personal prosperity. Money, among other things, creates choices.
If you found this article helpful, and you need advice for implementing business strategies so you can succeed in business, extract wealth and enjoy personal prosperity, please contact me on +61 2 9699 9171 or email email@example.com
This information (including taxation) is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Make Cents Accounting strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.