The new financial year is just around the corner, so it’s crucial for businesses to set the stage for success and growth for the year ahead. For business owners and entrepreneurs, this period offers an opportunity to reflect on the past year’s accomplishments, learn from any challenges faced, and strategically plan for the future.
As business consultants, we understand the importance of a comprehensive approach to preparing for the new financial year. This blog explores the key areas that should be focused on during this time, and how the Scaling Up framework can guide your business towards sustainable growth and prosperity.
People and Leadership:
A successful business relies on talented and engaged people, they are the backbone of the business. Evaluate your team’s capabilities and identify any skill gaps that need to be addressed. Consider using the Scaling Up Talent Assessment Chart to evaluate this. By using this one page tool, you will identify the A Players in your organisation and ensure you have the right people in key positions to drive success.
What are the key characteristics of A Players?
- Excellence in Skills
- Drive and Ambition
- Adaptability and Learning Agility
- Team Player Mentality
- Positive Attitude and Resilience
Once you have evaluated your team, plan for employee development and training initiatives to nurture talent within your organisation. This will empower your leaders to inspire and motivate their teams, fostering a culture of innovation and collaboration.
Key tips for improving your workplace culture:
- Align everyone around the company’s core values and core purpose
- Establish daily huddles and meeting rhythms
- Encourage open communication
- Provide regular feedback
- Establish a performance management system that rewards high performance and aligns individual goals with the organisation’s objectives
Vision and Strategy
The next step in preparing for success is to reassess your business’ vision and strategy. Take the time to evaluate your long-term goals and ensure they align with the current market landscape. Consider conducting a SWOTT analysis (Strengths, Weaknesses, Opportunities, Threats and Trends) to gain insights into your business’s internal factors (strengths / weaknesses) and external factors (opportunities / threats and trends (economic, technology and environment). Use this information to refine your strategy and identify key initiatives for the new financial year.
The Scaling Up framework emphasizes the importance of setting a clear vision and building a robust strategic framework that aligns the entire organisation towards a common goal. We suggest taking some time to complete the One-Page Strategic Plan to achieve this.
The One-Page Strategic Plan allows you to assess the following:
- What do you want to achieve in the coming year?
- What key metrics will you track to measure success?
- Is your leadership team aligned in their priorities and objectives? (Does everyone know where they are going and what they need to do to get there?)
Ensure your vision and strategic plan is compelling, communicated effectively and understood by all stakeholders.
Execution and Operations:
Having a well-defined strategy is crucial, but successful execution is equally important. Review your
- business model and subsequently your organisational structure, and whether you have the right people in the right seats.
- business processes and streamline them to improve efficiency. Identify bottlenecks, eliminate unnecessary steps and automate repetitive tasks wherever possible.
- key performance indicators (KPIs) to measure progress and hold teams accountable for results.
The Rockefeller Habits Execution Checklist is a great place to start, to understand the need for strong execution discipline. Create a rhythm of regular meetings and communication channels to ensure everyone is aligned and focused on the most critical priorities. Establish clear accountability and ensure that all team members understand their roles in executing the strategic initiatives.
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Cash Flow Management:
Healthy cash flow is the Oxygen of any business. Review your financial statements, budgeting process and cash flow projections for the new financial year. Identify potential cash flow areas for improvement and develop strategies to mitigate risks.
As we head towards the financial new year, make it your goal to enter it with a cash flow plan that will help you achieve your business goals. Here are a few handy tips to get you started.
A good cash flow forecast will help you to monitor when you have money coming in, and going out of your business. It can help you identify when you will have extra cash available or are likely to experience shortages, and also provides warning signs to avoid future financial problems. Having a strong grasp on the financial forecast of your business will help you make decisions throughout the year.
Know which levers to pull to get more cash in or to reduce cash out:
If you need more cash consider revising your pricing, increasing your volume of sales and managing your debtors. Alternatively reduce the cash going out of your business by revising outgoing expenses, inventory and staffing levels to determine whether you can make some savings. You may also consider refinancing your loans and selling any underused assets.
- Increase your sales – volume and / or price
- Measure, manage and where possible tighten your terms of credit
- Accurately monitor and measure stock levels and cycles
- Reduce your outgoings by looking at opportunities to save money by streamlining business practices and reducing operating costs or extending payment credit terms
- Build cash reserves
The Scaling Up framework emphasizes the importance of “profitable, predictable revenue streams.” Evaluate your pricing strategy, assess profitability by product or service offering and explore opportunities for upselling or cross-selling. Focus on customer retention and satisfaction to drive repeat business and establish a strong foundation for sustainable growth.
Preparing your business for success in the new financial year requires a holistic approach that considers people, strategy, execution and cash management. The Scaling Up framework provides a comprehensive roadmap to guide your business towards growth. By aligning your organisation, developing your team, streamlining operations and managing cash flow effectively, you can position your business for success in the year ahead. Embrace this opportunity to reflect, plan and take decisive actions that will drive your business forward in the ever-evolving business landscape.
If you would like to learn more about working with our expert consultants and Scaling Up Coaches, visit www.theninoxgroup.com or call 1300 21 00 21.