Finance – Time to reflect

Christmas is rushing towards us all and this is a very stressful time for businesses with all sorts of things that need to be completed.

The good news though is that for many of us following Christmas there may come a holiday break when business owners and staff can re-energise and get ready for the New Year. As a rule the first week of holidays is to destress and relax and by the second week you are able to process and make decisions with a clear mind.

Suggestions for ‘silly season’:

• Major business decisions should not be made when under time constraint or stress. Wait until you have a clear mind and are relaxed to review your business and make decisions that will affect the continuity and profitability of your business. • Use any time off to review important parts of the business including insurance, staffing, projections for the business going forward, how business is being done and whether simple changes can be made to make it better for you, your staff and your customers. A happy work environment will help grow your business and be more welcoming to your customers. • Plan capital commitments for the New Year while you are relaxed and can consider the pros and cons – ask yourself, will they add value to the business? • Review staff performance and look at ways of improving this and making their work environment better .While you are stressed, it is hard to step away and review any issues that are going on. Review any future remuneration increases for staff and build this into your prices going forward. • Review business performance to date and see if any improvements can be made before the tax year ends (normally March 31). • Review customers who owe you money and put in place measures to clear up the debts. Sometimes it just a matter of someone talking to the customers in a friendly manner, getting their trust and arranging a payment plan that suits both parties. This will greatly increase cashflow.

However, the single most important thing for you as a owner of a business to do, is to take a break, enjoy the sun and come back refreshed and energised for the New Year.