7 Top Business Tips for the New Financial Year + The SMART Framework to Support Business Success

Updated July 24th 2023

A new financial year = new opportunities – here are 7 key business tips that can be beneficial for business owners at the start of the financial year:

  • Review your financial statements:
    • Start by thoroughly reviewing your financial statements from the previous year.
    • Analyse your revenue, expenses, and profitability to gain insights into the financial health of your business.
    • This assessment will help you identify areas for improvement and set realistic goals for the upcoming year.
  • Budget and cash flow management:
    • Create a detailed budget for the new financial year.
    • Consider your expected revenue, expenses, and cash flow projections. Having a well-planned budget will enable you to allocate resources effectively and make informed decisions throughout the year.
    • Additionally, focus on managing your cash flow efficiently to ensure you have enough working capital to sustain operations.
  • Tax planning and compliance:
    • Work closely with your accountant to develop a tax planning strategy.
    • Stay updated on any changes to tax laws and regulations that may impact your business.
    • By being proactive and optimising your tax position, you can potentially reduce your tax liabilities and maximise your savings.
  • Set SMART goals:
    • Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for your business.
    • These goals should align with your overall business strategy and help guide your decisions throughout the year.
    • Regularly track your progress and make adjustments as necessary to stay on track.
  • Evaluate and adapt your business model:
    • Take this opportunity to assess your current business model and identify areas where you can improve efficiency, enhance customer experience, or explore new revenue streams.
    • Keep an eye on market trends and emerging technologies that could impact your industry, and be open to adapting your business model accordingly.
  • Invest in professional development:
    • Encourage your team, including yourself, to engage in continuous learning and professional development.
    • Enhancing skills and knowledge will benefit your business in the long run and help you stay competitive in the ever-evolving business landscape.
  • Seek professional advice:
    • Engage with trusted business advisors, accountants, and legal experts who can provide guidance tailored to your specific needs.
    • They can offer valuable insights, help you navigate complex regulations, and provide strategic advice to drive your business forward.

The SMART Framework

Setting SMART goals is a framework that helps businesses and individuals define clear and achievable objectives. Each letter in SMART represents a specific characteristic of a well-defined goal.

Here’s a breakdown of each element with actionable steps:

Specific: The goal should be clear and well-defined. Specify what you want to accomplish and provide details on what, why, and how.

Actionable step: Instead of setting a vague goal like “increase sales,” make it specific, such as “increase sales by 10% in the next quarter by implementing targeted marketing campaigns.”

Measurable: The goal should have measurable criteria, allowing you to track progress and determine when you’ve achieved it.

Actionable step: Define specific metrics or key performance indicators (KPIs) to measure progress, such as “track monthly sales figures and compare them against the previous year’s results.”

Achievable: The goal should be realistic and attainable within the resources and constraints of your business.

Actionable step: Assess your available resources, such as budget, manpower, and capabilities, to ensure they align with the goal. If necessary, break down the goal into smaller, manageable tasks to make it more achievable.

Relevant: The goal should be relevant and aligned with your overall business objectives. It should contribute to your long-term vision and strategic plan.

Actionable step: Evaluate how the goal fits into your business’s broader goals and objectives. Ask yourself if it directly impacts your growth, profitability, or customer satisfaction. Ensure the goal is relevant to your business’s current needs and priorities.

Time-bound: The goal should have a specific timeframe or deadline to create a sense of urgency and accountability.

Actionable step: Determine a realistic deadline for achieving the goal. Break it down into smaller milestones or checkpoints to track progress along the way. For example, “increase sales by 10% within the next quarter by implementing targeted marketing campaigns and evaluate results monthly.”

By setting SMART goals with actionable steps, you create a clear roadmap for success, enhance focus and motivation, and enable effective tracking and evaluation of progress.

It’s advised to regularly review and adjust your goals as needed to adapt to changing circumstances or new opportunities.

Remember that every business is unique, so the advice given should be tailored to your specific circumstances. Consulting with a professional business advisor is crucial to ensure the advice aligns with your goals and objectives.