With the end of financial year (EOFY) finally here, there’s no better time for small business owners to take stock of what’s worked and what hasn’t in the past 12 months. The EOFY season also gives small businesses the opportunity to start afresh and try new things to help boost their business results in the year ahead.
Here are four areas where small business owners can start thinking about new resolutions for the new (financial) year.
1. Invest in assets – and lower your tax
The 2017 Federal Budget has extended for another year its “instant asset depreciation” scheme, which allows small businesses to immediately write off purchases of up to $20,000 on their tax returns. Those who haven’t taken advantage of the opportunity, which covers non-physical assets like software as well as physical ones, should think about how they might be able to do so before the end of this financial year – as well as in the next year. In the new year, consider using the new laws to invest in assets that help expand your business, whether it’s overseas or to capture greater volumes of local sales.
2. Refresh your website
If your website’s been around for more than a couple of years, chances are that it isn’t performing to the best of its ability. The last 12 months have seen major changes to web technology, including the explosive growth in mobile devices and significant alterations to how Google ranks sites in search results.
While most small business owners may balk at the time and effort needed to update their website, the possible improvements in traffic and leads can prove well worth the surprisingly small investment of time.
3. Unclog your sales funnel
As you go through your profit and loss statements for this financial year, you may discover that your actual sales and margins don’t necessarily match up with your perceptions. Sales might be lower or higher than you thought, or coming in from unexpected areas where you didn’t invest as much. Take the time to understand any differences by talking to your salespeople or consulting your website and e-commerce analytics.
4. Grow, diversify, or consolidate
Your EOFY results can provide the best health-check of your business, but it’s up to you to decide what “treatment plan” to proceed with. Use the last weeks of the financial year to consider whether you want to grow your revenues and sales, diversify into new market segments where you might have seen promising results, or consolidate by going deeper with existing customers and product lines. Knowing which type of strategy to focus on will help your business stay focused and stable in the coming year.