Business Goal Setting

Set Goals, and write them down!

Without a goal or objective, you’re just running through the motions day to day, which works fine, but we’re looking at the big picture here.

To achieve, to grow, to expand, you need a goal. And this may be the goal, but there’s other steps that go into that process. This includes:

 

How are you going to get there?

What do you need to achieve first to get there?

How are you going to achieve it?

Who and what is going to help you achieve it?

 

When we speak about goals, and when we plan for goals, it’s best to look at it this way.

You need a short, medium and long term goal.

(Short term = weeks/months, medium = end of year, long term = 5-10 years)

It’s the little wins (or the short term goals) that keep you on track and keep your motivation going.

 

How to achieve it?

Make people aware of it. You can’t do it alone, so make sure your employees are working towards the same goal as you, if they don’t know about it, then it’s going to make it a lot harder.

Your goals should be aligned with you mission statement. Your mission statement is the overall purpose of the company, so henceforth your goals should be set in accordance with this.

 

Before you start goal setting here are some steps to undertake.

 

SWOT Analysis.

  • This will help you to identify your businesses Strengths, Weaknesses, Opportunities and Threats.

Strengths and Weaknesses tend to be internal factors, whilst Opportunities and Threats are external factors.

 

Bench marking

  • By researching similar business in your industry and area, it will give you an idea of what to expect, and a way in which to measure your performance

 

Goal Setting:

  1. Reflect
  • What worked well in the past year?
  • What improvements would you like to make?
  • What could be made more effective?
  1. Pick a theme
  • Organisation
  • Productivity
  • Profit margins
  • Work life balance
  • Employee satisfaction
  • Work place culture
  1. Create an action list
  • These are the actions required for you to achieve your goal, in regards to both your long term, and short terms goals.
  • What needs to get done in order for you to achieve you goal?
  1. Commit
  • Write it down
  • Check items off a list.
  • Make yourself and your employees accountable to the development and progress of your goal.

 

Don’t forget to break your goal down to more achievable steps, and celebrate the wins.

 

Let’s be SMART about it

 

Specific

What EXACTLY is it that you want to achieve? It’s great to have a topic or a theme, but that then needs to be broken down into exactly what it is and what part of that are you going to achieve.

Eg. To become more organised is a theme, not a specific goal

A specific goal would be to have all of your meetings scheduled in your diary and calendar at least a week in advance.

 

Measurable

In order to see progress, we need to be able to measure it. This could be in amount of hours, weeks, costs, complaints, reviews etc. Otherwise one person’s definition of achieving it can be different to that of another’s.

 

Attainable

Now let’s get some perspective. Let’s make sure that we can actually achieve the goals we set. I mean let’s be real, if my goal was to be Iron Man, welllllllll, the probability of me being able to attain that goal probably isn’t going to be all that high.

 

Relevant

Again, why would I make my goal wanting to be Iron Man when I work in finance? Whilst it would be pretty damn cool, is it relevant to me, my business and improving it? Maybe not.

 

Time-Based`

Have a date. Make yourself accountable. Stay on track to achieving your goal and achieving it by the set date. Are the steps to your goal being met by the specified time? If not either your efficiency or dates need to be re-assed. Understand why you’re not reaching these short terms goals in time and how to fix it.

 

To set an effective goal takes time. And it takes effort to monitor it, however monitoring it allows you to continuously asses the productivity of your business, and at the end of the day to reach your long term goal you need to be meeting and smashing out these short term ones.

 

Re-asses, re-evaluate, reveal in the reward.

 

TAKE THE FIRST STEP AND ACCESS A FREE BUSINESS GOAL SETTING TEMPLATE, CLICK HERE!

 

KICK-START the New Financial Year!

KICKSTART the New Financial Year!

Our top 10 steps to make the most of this financial year, and how to start off on the right foot.

 

For a lot of businesses, the end of the financial year means they’ve handed over all of their financials (or about to) to their accountant and have left them to it.

Well I hate to be the bearer of bad news, but your job doesn’t end there. Take advantage of the new financial year, and get on top of your business. By starting to plan for the end of the financial year, at the start, you can ensure that you are going to be taking advantage of all the opportunities this year has to offer! Make your business flourish, and make improvements from the previous year. It may sound long and boring, but it’s totally worth it. Now let’s get this stuff done!

 

  1. Review your business strategy

This will allow you to identify areas for improvement. An overall look at the business to see what can be made more efficient, or if processes need to be changed. Is this strategy going to lead you and your business to where you want to be? Is it still effective? Decide and then move forward.

 

  1. Review your business plan

Did you achieve the previous year’s goals? This can be financially related, customer or employee satisfaction related, product quality or efficiency, brand management and reputation etc. By analysing these goals you can establish whether or not they were met, and if not, why not? This can then put you on a path to discovering what needs to change, and implementing this change.

 

  1. Goal setting

The answers to the above questions become the basis for your goal setting. You need to understand what it is you would like to achieve this coming year. And this means writing it down! This allows you to develop a new business strategy that will work towards achieving these goals and objectives.

 

  1. Review your business structure

Does your current structure meet the requirements of your businesses present or foreseeable needs? Is expansion a possibility? Why we ask these questions and why you need to come up with an answer, is because if a re-structure is required, then different compliance and taxation regulations may be applied.

 

  1. Review your finances

Establish if you are meeting your targets, and if not understand why. Is it through material/manufacturing costs, labour costs, efficiency, not meeting sales targets or does the price point needs to be adjusted? Find out what room you have to move and where, and then proceed accordingly.

 

  1. Review your insurance

It’s such an important part of running a business, from small to large and everywhere in between. Whilst there are legal obligations, it’s also important to do a risk assessment and look at other potential risks to the safety of your employees and your business. This review should be taken out not only to protect yourself, but to also make sure you are fulfilling your legal requirements.

 

  1. Asset protection

Speaking of legalities, your assets are what you’ve acquired with all your hard earned time and money, so make sure you look after them, and making sure their value is registered. If you’re unsure about how to go about it, the best thing is to speak to a professional. They know what they’re talking about.

 

  1. Establish a budget

Now that you know what you want to achieve, what improvements you would like to make, and how to go about it, you need to budget. I know it’s the scary B word, but it’s important and if you stick to it, it works! By knowing just how much you are going to commit to which areas of your business, you can put both you and your business in a much more stable financial position for the future.

 

  1. Use financial management tools

Trust me, they will make your life a lot easier, and make your finances a lot easier to manage as well. Cloud accounting software such as Xero keeps everything in one place. By starting to use these systems from the beginning of the financial year, come tax time for the following year, it will make both yours and your accountants lives a lot easier. Xero stores your documents and receipts meaning that everything is there for you when you want it, no wasting your time searching for it all. Time which you could spend any other way you would like (early knock off to the pub anyone?). It also allows you to create and send quotes and invoices and keep track of debtor payments. It also has all traditional payroll functions, such as the ability to file new employee details directly with the ATO, automatically pay Superannuation and allow employees to enter their timesheets.

 

  1. Manage and review your superannuation

Because after all, we’re not all going to work forever right? Knowing what kind of condition your super is in can allow you to take action, and get advice to improve the situation. Even if it’s already in great condition, it can always be better right? I mean think of the size of the caravan you can get to travel across Australia in. Talking to professionals will also help you to establish as a business owner what kind of opportunities this may present you with. It’s worth a look isn’t it?

 

 

And here’s a bonus tip (mainly because the list looks so much better finishing at 10 rather then 11), back it on up! Get all those important files backed up, and store it off site. We talk about insurance as a precaution, well here’s another one for you. If you have insurance as a ‘just in case’, then why not back up your files for the same ‘just in case’ as well. Because if that ‘just in case’ became a, ‘thank god I did’ then you are going to be very thankful indeed that you chose to backup, because imagine the paperwork then!

 

 

So follow all or even at least some of these steps, to get in shape for the new financial year! Financial stability gives you the ability to plan and execute, and grow and improve. It allows you to know the direction that your business is heading in, and make sure it’s the right one!

You don’t want to be another year behind, so get sorted and get started!

 

July 1st Changes

With the New Financial Year upon us, it’s time to have a look at just what it is that’s happening.

With quite a few tax breaks for business, it’s a great time to find out what you can take advantage of!

 

Tax cuts

For those of you earning more than $87,000 per annum, then you’ll be happy as the government have increased the threshold of the 32.5 per cent tax bracket to $90,000. There are also rebates that will come in for people earning up to $125,000 a year.

There are also tax breaks for the low to middle incomes earners, who can receive tax back for the 2018/19 financial year between $200 and $530 depending on their earnings.

There’s also a little something in there for big business. Companies with an annual turnover between $25 million and $50 million will pay a lower corporate tax to the amount of 27.5%, down from 30%.

Regional Victorian businesses will also find they will receive a payroll tax cut bringing their rate down to 2.425%, from 3.65% to help encourage and boost the regional industries.

 

Wage changes

The Fair Work commission have announced a 3.5% increase to the minimum wage. This will make the weekly minimum wage $719.20 and the minimum hourly rate $18.93. This equates to a rise of $24.30 a week for minimum wage workers.

Alongside this however we see cuts to Sunday penalty rates for the fast food, hospitality, retail and pharmaceutical industries. It is the part time and full time employees that will get hit the hardest from this, with cuts between 10%-15% occurring. Casual employees remain almost unaffected, except in the retail sector where their penalty rates drop by an extra 5%.

 

GST

Overseas retailers that are selling goods under the price of $1,000 are now subject to GST.

This means at this stage we say goodbye to ordering off the U.S Amazon site, as they no longer deliver to Australian addresses, and instead will re-direct you to their newly founded Australian version.

In regards to housing and real estate, the purchasers of newly constructed residential property, land or subdivisions must now withhold the amount of the GST from the contract price. Whilst the amount of GST will not change they will now have to pay the amount directly to the ATO.

 

Child Care Subsidy

The Child Care Subsidy will replace the current Child Care Benefit and Child Care Rebate.

The lowest income families (under $66,958) will be paid the most, with 85% of their child care costs being covered. This then tappers down as the income increases. If a family earns more than $351,248 they will not receive a subsidy, with the lowest rate being 20%.

The cap that was previously in place has now been removed for families earning less than $186,000, and lifted from a $7,600 cap to $10,000 for families earning between $186,000 and $351,000 a year.

Eligibility requirements still remain.

 

Plastic Bags

Whilst Victoria have only just began to see the plastic bag ban introduced into major shops such as Woolworths and Coles, across the nation more bans are being seen to be put in place. Queensland and Western Australia will ban the use of single use, light weight plastic bags from major retailers, following in the steps of the ACT and Tasmania.

 

So welcome to the new year and best of luck!

For advice on how to make the most of it, stay tuned to our next blog!