New financial year resolutions for SMEs
Financial Year 2020 is only a few days away, and for many small businesses now is one of the busiest times of year as they assess results from the previous year, get paperwork ready for tax time and plan for the year ahead.
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While many small businesses welcomed the stability of a confirmed government as well as the RBA interest rates announcement, it is a competitive market for most sectors and the outlook remains patchy depending where you are in Australia.
In a changing external environment, we encourage customers to remain focused on what they can control – and that’s how they prepare for the year ahead.
Knowledge is power, and data is key. Take the time to complete a deep dive into your performance from the past 12 months – identify the areas you did well, and where you can improve.
Consider everything from revenue, cash flow, marketing and customer retention, to employees, employee retention, suppliers and competitors.
The start of the new year also signifies the time to review and set new business goals.
Tim Taylor, Program Director, SME Stores & Speciality Banking
Whether that relates to increasing revenue, customer retention or customer satisfaction, these goals should be specific, measurable, achievable, realistic and timely. And one of these goals should be the budget.
Budget preparation can be the best way to ensure your business is on the front foot and will put it in a position to achieve the goals you have outlined in FY2020.
We know cash flow can be challenging particularly for those starting out (under three years) – our SME vs Me Report found, one in four business owners haven’t been paid in 12 months.
The Report also found that for businesses that are between three and five years old, only one in four owners pay themselves superannuation.
Budgeting and planning ahead can help to mitigate this, especially with the use of separating funds for different purposes into different bank accounts.
There is an age-old truth that a good business has a good accountant, good legal partner and good bank(er) to support them – facing into 2020 is an opportunity to review whether you have the support you need in these areas.
At Suncorp, we’re committed to helping our small business customers invest and grow. You’re the backbone of the Australian economy, and in most cases synonymous with the communities you serve. Make sure you also use this EOFY as a time to reflect and celebrate your success and the progress you have made.
