The start of a new financial year is often associated with tax returns, budgets and compliance obligations.
However, it can also be one of the best times to step back and assess the bigger picture. With a fresh set of financial results behind you and a new year ahead, July provides an ideal opportunity to review your business performance and identify areas for improvement.
Rather than jumping straight into day-to-day operations, consider these five questions.
1. What worked well last year?
Before focusing on what needs to change, take time to identify what worked.
Consider:
- Which products or services performed best?
- Which customers or clients generated the strongest returns?
- What improvements delivered the greatest impact?
- Which investments paid off?
Understanding what drove success can help you make better decisions about where to focus your time and resources in the year ahead.
2. Where did we lose time or money?
Every business has inefficiencies, but they are often hidden within day-to-day operations.
Common areas worth reviewing include:
- Excessive administration
- Delayed debtor collections
- Unprofitable products or services
- Poor cash flow management
- Manual processes that could be automated
Small improvements in these areas can often have a meaningful impact on profitability.
3. Do we know our key numbers?
Many business owners review financial reports regularly but struggle to identify the few metrics that truly drive performance.
Depending on your business, these may include:
- Revenue growth
- Gross profit margin
- Net profit margin
- Cash reserves
- Debtor days
- Customer retention rates
If you can’t easily identify these numbers or explain what they mean, now may be the time to review your reporting processes.
4. Do we have the right people and systems to support growth?
Growth places pressure on both people and processes.
Ask yourself:
- Do team members have the skills and support they need?
- Are there any gaps in leadership capability?
- Are our systems helping us work efficiently?
- Are there opportunities to automate repetitive tasks?
Investing in people and technology can help create a stronger foundation for future growth.
5. What does success look like in 12 months?
This is a great one to focus on. Many business owners spend their time solving immediate problems but devote less attention to defining what success actually looks like.
The start of a new financial year is a good opportunity to think beyond the next quarter and consider where you want the business to be this time next year.
Success may mean:
- Growing revenue
- Improving profitability
- Strengthening cash flow
- Expanding into new markets
- Reducing owner dependence on the business
- Creating a better work-life balance
- Preparing for succession or a future sale
The clearer your vision, the easier it becomes to make decisions that support it.
Turn your answers into action
The value of these questions doesn’t come from the answers alone. It comes from what you do next.
Review your responses and identify three to five actions that will move your business closer to where you want it to be in 12 months’ time. In many cases, the most meaningful improvements come from consistently addressing a few key priorities rather than attempting major change all at once.
If you’d like to discuss your business goals and priorities for the year ahead, contact your Accru adviser.
