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New year, new strategies - 5 steps to get your business growing in 2024
8 January 2024
The new year offers a fresh start and a chance to reset your business for growth. Here are 5 steps to position your enterprise for prosperity in the year ahead.
Each year brings its own unique set of opportunities and challenges.
None of us can say for sure what lies ahead over the next 12 months. What is certain is that taking the time now to prepare for 2024 can help all small- and medium-sized enterprises (SMEs) lay strong foundations for whatever the new year brings.
Our 5-point checklist hones in on the most effective strategies that time-poor business owners can take at this busy time to be ready.
Let’s review 5 ways to turn the new year into new opportunities.
1. Refresh your business plan
Drawing up a business plan is something most entrepreneurs do when they first launch their venture. It’s a sensible step. Business plans spell out what you are aiming to achieve—and how you’ll get there.
The problem is that once the venture is up and running, that initial business plan tends to be overlooked and outdated.
That’s a shame because revisiting your plan is a simple way to track your performance, understand which goals you have achieved, and provide clarity on what’s working and what’s not.
Your business plan is not a set-and-forget document. As a blueprint that sets out how your venture intends to be profitable and grow over short-medium-and long-term timeframes, it is worth reviewing your business plan annually.
The end of the year or beginning of a new one is an ideal time to reflect on any changes in direction, priorities or goals. This is especially important if you, or your business, have changed or evolved over time.
Key aspects of your business plan that deserve special scrutiny include:
- Your vision statement – does your vision remain the same? Or has it changed since you first wrote your vision statement?
- Your business goals – have your goals shifted? This may be the case if you have expanded into new markets or adjusted your product range in response to changes in the economy or commercial environment.
- Milestones to achieve
– review the milestones that you believe matter most to the success of your business. You may be surprised at how many goals you have achieved since you last reviewed your plan. This can provide valuable motivation to establish new milestones!
Software is available that can provide business plan templates or help to update your business plan. Bear in mind though, this is not a tick-and-click exercise.
Developing a plan that truly reflects your business calls for careful thought. Brentnalls SA can help you put together a plan that takes into account aspects of your operating environment, which you may not have considered.
2. Complete a SWOT analysis
A flip of the calendar is the perfect time to conduct a SWOT (strengths, weaknesses, opportunities and threats) analysis of your business.
It’s almost certain these different facets of your enterprise have altered over time as the business matures, the market evolves and you gain experience. SWOT analysis can be a useful tool that lets you:
- Deepen your understanding of the business
- Recognise areas that could be improved
- Make key decisions such as introducing a new product or service line.
Your SWOT analysis doesn’t have
to be extensive but it is worth getting multiple perspectives. Ask your team and your customers for their input to gain a more holistic picture.
3. Draft a cashflow forecast
Big businesses do it, governments do it, and there are compelling reasons for your business to do it.
We’re talking about drafting a cashflow forecast.
The ebb and flow of funds into and out of your business throughout the year shapes your ability to pay bills, invest in inventory, expand your team, and boost productivity through the purchase of new equipment.
Not only will a cashflow review leave you better placed to plan your business finances for the year ahead, it can be a money-saver, helping you identify and prepare for those periods when you could face a cash squeeze.
Having an up-to-date cashflow forecast is also something a lender will request if you apply for commercial finance at some point through the New Year. It can take time to draft an accurate cashflow forecast, and of course time is something many business owners don’t have enough of. If you would like assistance to create a cashflow forecast, Brentnalls SA can help.
4. Embrace innovation
In today’s rapidly changing world, innovation is critical for businesses to stay up-to-date with changing consumer preferences or staying ahead of the competition.
SMEs have a critical advantage over their larger counterparts. They are nimbler, less weighed down by legacy systems, and are well placed to respond to change quickly. It’s a head start worth capitalising on.
There can be a variety of ways to innovate. For some businesses it can mean rejuvenating their product/service mix to stay abreast of new trends. For others it can mean investing in different modes of delivery for their products and services.
In all cases, innovation means keeping your business relevant to its market, and prospering in the process.
The bottom line is that if you don’t innovate, your competition will, and your market share and profitability could suffer.
There can be tax-based incentives for businesses to innovate. Small businesses, with aggregated turnover below $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024i. Also, corporate businesses might be eligible for the R&D tax incentive if they invest in innovation.
Before you invest in any new equipment as part of an innovation strategy, it is worth speaking to the tax experts at Brentnalls SA to know how this could
impact your venture’s tax position.
5. Engage an advisory board
As a SME owner, you can be called upon to wear many hats. This can be both exhausting and time-consuming. And the reality is that while many business owners are experts in the field in which their business is engaged, they do not always have broad brush experience in other areas including tax, legal, marketing and compliance matters.
At Brentnalls SA, we encourage small business owners to engage with external advisors, who can act as a sounding board for owners.
Having your own advisory board allows for collaboration, sharing of ideas and experience, and gives business owners the benefit of a ‘big picture’ outlook even when their business is small.
Our Business Advisory team has helped many small businesses benefit from our extensive experience, to ensure they meet their business and personal goals.
Our expert support spans:
- Business Analytics
- Cashflow, Budgeting and Performance
- Efficiency Reviews
- Management Reporting, and
- Strategic Planning.
It is all about helping your business be the best it can be by acting as a sounding board for you, your partners, and other stakeholders in the enterprise.
What matters is that an advisory board has your back, helping you navigate a rapidly changing world. It can be the lynchpin that sees your business reach new heights as opposed to failing to reach its full potential.
We’re here to help – at every time of year
As we mentioned earlier, no one can say for sure what 2024 will bring. However, we do know that the new year will kick off with noteworthy challenges.
High inflation, a cost-of-living-crunch, high interest rates and consumers who are being forced to carefully consider discretionary spending patterns, all of which will impact the business community.
These are not insurmountable challenges. The key is to know that you don’t have to ‘go it alone’.
Remember, the Brentnalls SA team is ready to help by bringing our broad experience and professional skills to the table, to help your business forge ahead in 2024. It could be the X-factor that gives you a winning edge in 2024 and beyond.
Discuss Further?
If you would like to discuss, please get in touch.
Disclaimer
The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
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"We feel confident in our financial decisions and can focus on growing our business with peace of mind."
John & Barbara Kalleske
Kalleske Vineyards Pty Ltd
