Tips to prepare and plan for the new financial yearJune 25, 2021 2021-06-26 16:08
Tips to prepare and plan for the new financial year
Tips to prepare and plan for the new financial year
The new financial year is about to begin. To stay ahead and competitive in your industry, it’s important for business owners to be prepared for the new financial year and adjust their strategy accordingly.
Often, owners get caught up in day-to-day activities and fail to think about the long-term plan for their business, which can severely hold them back from achieving their biggest goals.
Here are some of my tips for achieving your goals in the new financial year.
Learn to delegate effectively
When we first start out as business owners, we wear all the different hats required of us. You started your business as an expert in your field – and you take on all the other work necessary as well, including, managing your bookkeeping, developing marketing campaigns, managing HR and everything else that’s required.
While this is often necessary in the beginning stages of business, it’s not ideal for the long-term. This is a sure-fire way to end up burning out and spending far too much of your valuable time on things that should be delegated to others in your team.
Your team is there to support you, and you should be hiring people better skilled than you in these areas.
Allowing your team to step up and take on more responsibility will have a massive positive effect on the efficiency of your business overall.
For example, by assigning experienced bookkeepers to manage invoicing and experienced tradespeople to work on the technical work, you can reduce the overall number of hours spent on a project and free time up for yourself to focus on building your business and making sales.
One Hour of Power Per Week, Minimum.
As a business owner, you must have at least one hour of power per week.
This is a practice of devoting one hour of your work week (during work hours) to solely focus on the most important activities as a business owner.
Just one hour per week can lead to huge improvements. Having one hour free from distractions, every single week, will begin to snowball and have larger compounding effects down the road.
The hour of power will allow you to focus on your business and develop those game-changing strategies that will lead to huge results for your team and business.
Many business owners have such a strong focus on maximising their billable time that they neglect the valuable time they should be spending on the less-tangible aspects of running a business – such as setting a clear vision for their team and developing strategies to win A-grade clients.
Some guiding questions to focus on during this time include:
- What’s the best way to attract new clients and strengthen current relationships?
- What can you do to add an extra zero to your hourly rate?
- What strategies can you be working on to increase your company revenue by 10x in a few years?
Spend this time asking yourself these questions and fleshing out action plans. The key with the hour of power is to be consistent and work on building up from the previous session.
Do you have an hourly rate identity crisis?
Many business owners have a disconnect between their billable rate, the number of hours they work and the actual salary they take home. This is called the hourly rate identity crisis.
The main reason for this is that the business owner is not always working on items that make him billable for his value.
For example, a business owner with 20 years of experience may be spending five hours per month doing bookkeeping or invoicing work. That business owner must ask himself – are those five hours the best use of his time? What could I be doing with those five hours per month instead of doing the books?
This is just one activity – but there are dozens of small activities that you do either due to necessity or habit. However, as these small activities build-up, the effect on your business is huge. Instead, delegate these tasks and ensure more of your time is spent on things that will make the biggest difference to the overall success of your business.
Most business owners report that they never achieve a salary equal to the value of their true hourly rate times the number of hours worked.
If you are one of these business owners, it’s important to take stock of your time and determine what exactly you should be focusing on. Think about how you can be spending more of your time working at your highest hourly rate.
If you’re already earning your “highest hourly rate” salary every week, then a separate issue arises: your hourly rate is much too low.
No employee, including a business owner can have 100% of their time as billable time.
Every week will include some non-billable work, such as the hour of power. If you are achieving or surpassing 100% billable time every week, it is clear that there is an opportunity for you to be increasing your hourly rate. Begin delegating your current work to others and work out how to spend more time earning a higher hourly rate.
The trade and construction industry is extremely competitive, and it is important to stay ahead and plan out the future of your business. As the business owner, you are in the driver’s seat: you are responsible for setting the direction of your business and taking your team along with you. Opportunities arise through being prepared, a willingness to plan big, and a commitment to work hard and achieve your goals.