Winter Prep for Business Owners
For Australian business owners winter coincides with the end of the financial year, so this is normally the time when we finalise our accounts and make last minute adjustments to ensure things like super guarantee charge have been paid on time. Unfortunately many business owners miss out on key strategic planning opportunities that could cost them long term gains through winter and beyond.
In many countries preparing for winter is actually a big deal and quite important to ensure your safety and health – in Australia this is not such a big deal and in 2016, so far at least, it looks like it might be a non-event. But for business owners this is often a good time to do a review and some strategic planning for the year ahead.
In the same way it is during this period that we would normally be setting a budget for next year and doing some tax planning – unfortunately many business owners take shortcuts in what should be a key aspect of strategic planning – many simply take last year’s budget extract the figures into an Excel spreadsheet and add 5% and recast the budget for the next financial year – this is obviously not strategic and has no relationship to any overall strategy or plan for the business.
Clients hear me say regularly “ begin with the end in mind ” and this applies equally to the budgeting process – many of our decisions and financial budgets will vary depending on our end goal and what it is we are trying to achieve – should we be investing or making an acquisition to grow to a certain size so our business is more valuable, should we be launching a new product or opening another office in another area or state to prove our model is expandable nationally and therefore saleable to a larger listed company for example.
Winter is a good time to take some time out of the business, undertake a full-blown strategic planning process ( including the exit strategy ) and come up with some strategic financial budgets, that are closely aligned to the businesses strategy and goals and personal outcomes you are looking to achieve as you proceed down the path towards maximizing the value of your business and achieving a successful exit.