5 Strategies For Business Success

Taking time to regularly pause and reflect on the performance of your business is important.

When there’s much at stake – including goal and performance alignment, tax liabilities, strategic planning, operational efficiency and compliance – your business advisor is your best guide for navigating business imperatives.

Here are five key areas to consider to set your business up for success:

1. Evaluate financial performance compared with business goals

Ideally, you start each financial year with a budget detailing your expected revenue, costs, and bottom line. It’s important to regularly compare your projections with the reality reflected in your financial statements.

If there are major discrepancies, carry lessons learned from your inaccurate estimates into the next year’s budget planning. Check your key performance indicators for more insights into variances.

Review how major decisions made throughout the year – for example new product launches, entry into a new market, premises relocation, refinancing, restructure, an expansion or a cutback – impacted the business financially.

Your goals may need to be reassessed based on your current trajectory, likely business results and external market conditions.

2. Explore ways to minimise tax

There are many good reasons to update business technology and other equipment. If you choose wisely  – you can achieve signifcant ROI while at the same time reducing your tax bill. Until 30 June 2025, the Government is offering a $20,000 instant asset write-off.

But it’s not just assets that can earn tax deductions. Small businesses may be able to claim deductions in the current year for prepaid expenses relating to the next tax year.

On the revenue side, consider whether it’s possible to defer income until after the end of a financial year, so that it’s not taxable in that year. This may involve delaying the issue of an invoice for work in progress, or using a more complex taxation rule relating to unearned revenue.

Consult your business advisor about asset purchase timing, prepayments, deferred income and other permissible EOFY tax planning strategies, and refer to our most recent EOFY Tax Planning Guide for more insights.

Click here for Bentleys’ 2024 EOFY Tax Planning Guide

3. Plan for the future

Annual budgets and longer-term financial forecasts are useful for setting current and future financial goals. Basing them on existing data and developing trends will allow for the identification of potential risks such as economic downturns, market volatility, inflation and interest rate changes.

Your forecast will thus enable you to discuss risk mitigation strategies with your business advisor, including improving risk controls, reviewing insurance cover, diversifying revenue streams and building a financial cushion.

Succession planning is also an important future strategy. Discuss succession planning with your business advisor to ensure your enterprise remains in capable hands and financially sound in the long term.

4. Aim for improved operational efficiency

Although business leaders should always be on the alert for ways to improve and streamline operations, planning  periods present a perfect opportunity to gear up for enhancements in the future. Base your operational efficiency review on three key areas:

• Streamlined systems

Scrutinise areas where methods could be improved or rationalised in order to increase productivity or reduce costs, possibly through automation or outsourcing.

• Technology investments

Integrating new technologies, such as cloud computing, AI, or industry-specific tools, could improve business capability.

• Employee training

Employee training programs could enhance skill sets, increase efficiency, boost employee engagement and reduce staff turnover.

5. Stay informed about legislation and compliance

Meeting your legal and compliance obligations, as well as taking advantage of new government incentives, can be time-consuming. Fortunately, a knowledgeable business advisor can do the hard work of staying up-to-date in the following sectors on your behalf:

• Legislative changes

Recent changes in legislation, particularly in taxation, employment law and industry-specific regulation, may affect your business.

• Compliance

Failure to comply with all local, state and federal regulations could result in expensive penalties and business brand damage.

• Government incentives and support

There may be new government programs that could benefit your business. Use the government’s grants and programs finder to identify funding in, for example, low carbon product manufacturing, digital connectivity, primary production, and more than 600 others.

• Environmental, social and governance (ESG)

Consider any recent ESG updates, and how your business can align with ESG principles, such as reducing carbon footprint, promoting diversity and inclusion, and improving transparency and accountability in corporate governance practices. This will enhance your brand and ensure you are able to remain a part of the supply chain of larger businesses, given proposed mandatory reporting on the sustainability of their suppliers.

Find an experienced business advisor you can trust

Get in touch with Bentleys today to find out how our expert business advisors can assist you. We can help you to navigate financial performance and goal evaluation, tax optimisation, strategic planning, operational efficiency, legislation and compliance, and many more areas. We’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.