It is the beginning of the calendar year, and for most of the businesses it is the end of their financial year. Now is the time to wrap up the current financial year, and to plan for the following financial year.
Planning for the next financial year, will consist of the following:
- Budget
- You need to look at the economic indicators, to ensure that your costing and pricing is in line with these indicators, to ensure that you maintain your profit levels.
- You need to do a proper budget, based on the history of your company financials, or you can do a zero-based budget. Ensure that you are realistic with your assumptions and expectations for your business.
- Should you expect major changes in the following year, do “What If” scenarios, so that you are prepared for any development that might take place. For example, if you expect a major contract to kick in, make sure that, should it not happen, you are still in business, and can maintain your profitability.
- Operational Issues
- Ensure that cost is maintained, and that you have control over your costing.
- Set your pricing strategy, to ensure that you are profitable, but that you do not price your products out of the market.
- You need to curtail your fixed cost, as that can negatively impact your profitability should your sales decrease.
Remember, the only way to impact your profit margins, is by decrease cost, or increase sales.
Business Services.Com can assist you in your planning for the following year. We can use our expertise to guide you to ensure that you are ready for the next phase in your business.