Plan Ahead to Get Ahead

You’ve probably all heard of the 6 ‘Ps’Prior Preparation Prevents Piss Poor Performance, but this is never been truer than when we sit down to plan ahead for a new year.

Whether your business turnover is $100,000, $1,000,000 or $30,000,000 p.a., the New Year is a perfect time to take stock and review your operation. At this time of the year your 2012/2013 Financials should now be finalised so take the time to review each line of expenses. Understand what makes up each expense item, why is it at this level and can I do anything to reduce some of these costs moving forward.

Your business budget forecast should be done around April/May each year ahead of the start of a New Financial Year. When budgets are done, they should reflect the number of weeks in each month and the income adjusted accordingly. Public holidays, Easter, Xmas, annual leave, etc should also be taken in to account as these times of the year can affect income for the business.

You should also review your list of assets within the business, what equipment is coming up for another birthday, which items are due to be upgraded, can I be more efficient by trading in older more expensive gear and replacing it with new equipment which is under warranty.

Once you have reviewed your business and planned ahead for the next 12 months, use your review on a monthly basis to compare actual trading results against your projected figures to ensure that the business is tracking well and that your expenses are not getting away from you.

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