Better Business Performance—7 Things to Review

If you’re a business owner in Australia, it pays to pause and review your business performance. Here are seven key areas that we recommend focusing on.

Whether it’s taking stock at the start of a new year—or a new financial year—or any other period on the calendar, spending time to review your business performance pays dividends.

It allows you to determine what you’re doing well, and perhaps not so well, and any opportunities there are to exploit.

To get you started, we’ve identified a handful of key areas to focus on—based on our vast experience collaborating with a range of clients. 

Here are seven specific areas we suggest you review for better business performance…

1. Reporting Systems

Take time to understand how you currently measure effectiveness—particularly sales and employee performance.

Do you know what your cost of sale is, whether you are achieving sales at the right costs, and what the most effective sales channels are? These are all pertinent questions that you should be able to answer.

2. Cash Flow Requirements

Cash flow constraints can considerably hinder business growth. Effective balance sheet management of accounts receivables, accounts payables, and inventory levels help to make sure that you have sufficient cash to operate effectively.

It’s also critical that adequate cash is being set aside to meet tax and superannuation obligations.

3. Products and Services

If you have a solid reporting structure, you’ll understand how profitable each of your products and services is.

Understanding this means that you can plan for the year ahead, focusing on promoting profitable products or services, and eliminating unprofitable ones.

4. Staff Performance

Do you have a solid system for understanding what your team members are working on, and for recognising achievements?

A strong culture and regular communication with staff will ensure your team is motivated and focused on the overall company objectives.

5. Operating Costs

Getting a handle on all your operating costs, and then reviewing them for improved deals and more competitive suppliers, can have a significant impact on profitability.

You can even task staff with finding ways to streamline costs and reward them for finding savings.

6. Most Profitable Customer Relationships and Satisfaction

Understanding which customers are generating the most revenue and/or profit should be a top priority. After all, we know it’s cheaper to retain a customer than to acquire a new one.

Customer retention has a considerable impact on growth. Using tools to track customer satisfaction and the likelihood of a referral can streamline satisfaction monitoring.

7. Debt or Finance Arrangements

Make sure you have the most cost-effective finance facilities in place, and that you are reducing any debt effectively. This is critical to help your business grow and prosper.

Additionally, having trusted advisors review your business can be hugely beneficial. An experienced advisor can help you to take an ‘outside-in’ look at your business, providing valuable insights and expertise to improve your business performance.

Better Business Performance—Help Is at Hand

Is running a business becoming all too hard to manage on your own?

If so, help is here.

At PrimeAdvisory, we specialise in working with business owners to keep them on track, providing expert financial and accounting services grounded in rich analysis and strategic thinking.

To find out more, send an email or call us on +61 02 9415 1511.

It’s time to put you on the path to better business performance.