We have now ended the fiscal year. This is the best time to take a moment to evaluate your business to make plans for the future, as you now have the most accurate information regarding your company's financial standing, inventory levels, profitability, and other metrics. Using this to make well-informed choices about your business direction.
Initial aspects to consider when planning for the next financial year:
>Employees: This is crucial in driving your business forward.
>Customers: Look at your client's preferences and what they want in your business.
>Competitive landscape: Look at industry trends, particularly your competition's strategies. Go into your competition shop, look around and ask yourself why are they doing this?
>Technology: Ensure your technologies will do the job. Technology is constantly changing.
Now make a budget for next year.
Not hard, generally.
We estimate future figures by comparing current financials against those from the previous year, plus adding some experience. Your accountant should be able to provide a Profit and Loss statement outlining income and expenses for this year and last year; even better if they can do it with five years. To predict future earnings, look at the previous history for each item and now make an educated guess of the changes, e.g. add 5% to the current figure or subtract 2%.
You now have a budget to check out.
Have a chew
So how is your business travelling?
Do you have enough cash flow to cover your expenses?
Are you profitable?
Conclusion
Now you have these factors. Develop your path to set your business up for success in the coming year.
Happy planning!
