Whether it’s a clean slate or a swathe of new opportunities, the start of a new financial year presents SMEs with opportunities to fix, consolidate or grow their businesses.
To help you achieve whatever your primary objective may be, we’ve outlined 3 key things that every SME should be implementing this FY23/24, to help set your business up for success.
1. Set new business goals
With tax-time having just wrapped up, you’ve likely got a sound indication of your businesses financial health. So, with last FY’s business performance fresh in your mind, this is a great chance to review existing goals, as well as set new ones.
Analyse areas of overspend and underspend, instances where you may have made unexpected profit or loss, how much you paid in fees or interest on different accounts, as well as any services that are no longer needed.
Based on your findings, set and prioritise new business goals, and develop a roadmap to achieve them — because goals without a plan won’t help anybody!
Note: It also helps to keep up to date with current industry trends and practices, and where possible, with other business owners to gain insight into similar successful businesses and their unique approaches.
2. Take advantage of government incentives
The 2023-24 Federal budget has brought with it numerous initiatives aimed at helping small businesses weather inflationary pressure and bearish economic headwinds.
By making yourself aware of these initiatives, (such as the Instant Asset Write-Off (IAWO) with a reduced threshold, the Small Business Energy Incentive, and a newly introduced Industry Growth Program), you’ll be well placed to make the most of FY23/24, and position your business for success [1][2][3].
To learn more about the benefits that SMEs can expect from these incentives, click here.
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3. Be organised and have a contingency plan
Being on top of your finances and keeping accurate records is not only essential for meeting tax obligations and demonstrating your financial position to lenders, (if you need access to business finance), but is also immensely helpful in times of rising consumer costs and fluctuating interest rates.
With FY23/24 already underway, it’s important to build a contingency plan to deal with unexpected events, as being prepared for financial turbulence will increase the chances of your business being able to weather instability and keep moving forward.
For a lot of businesses this could look like a Line of Credit or Revolving Facility — both of which are helpful financial products designed to keep cashflow rolling when businesses need some extra assistance.
Something to consider: If you need a cash flow boost, or simply want to assess your options, click here to view your top options through our free online loan-finder.
In summary, it’s imperative for SMEs to take the time in laying strong foundations for the year ahead.
Setting sound business goals, taking advantage of helpful government incentives, as well as being prepared and having a contingency plan in place will help to set your business up for success this financial year.
