Why Starting the Financial Year off Right Isn’t as Overwhelming as It Seems
by Cassie Petrie, Managing Director SMB EMEA, SAP Concur.
It is safe to say that the last few years have been turbulent for small businesses as the UK economy has been impacted by significant unprecedented challenges. Supply chain issues, changing policies and new regulations all have a knock-on effect on businesses - with small businesses particularly hit hardest.
However, as we continue through the financial year, it’s important to recognise these challenges and plan for these challenges into the second half of the year. Doing so will ensure that small businesses aren't deterred as there are steps that can be taken to plan for the unexpected and implement agile ways of working that allow SMBs to adapt and rebuild in ways that work for them in the wake of challenges. Using the below six steps will help guide businesses through the next financial year in an achievable way, whilst promoting growth and innovation.
1. Goals and objectives give structure to the business
The first step SMBs should take is to set clear goals and objectives. By defining clear and achievable goals for the financial year it will help finances to stay on track and allow for easy tracking of progress to commence. To ensure this happens, the goals should be specific, measurable, attainable, relevant, and time-bound (SMART). When clearly articulating what the business aims to achieve through key milestones and performance indicators, it will relieve stress. Allowing for time and focus to be put into other areas of the job rather than be calculating costs at any given moment.
2. A detailed business plan serves as a key to success
To accompany goals and key performance indicators (KPIs), SMBs should develop a comprehensive business plan. When creating a detailed business plan, it will help outline and define your vision and mission. As well as understand who your target market will be, what your competitors are doing and how your business will approach its marketing strategy to help the organisation to reach its financial targets. A well-thought-out business plan serves as a roadmap for success. It also provides clarity for business leaders, especially when understanding where to allocate resources effectively to get the most of the business.
3. Perfecting the basics allows for focus on innovation and growth
One thing that is especially important for SMBs to focus their attention on if they want to achieve success this year is to prioritise financial health. This can be done by closely monitoring cash flow, managing expenses and ensuring adequate funding for business operations. When planning your business objectives, make sure to establish a budget that aligns with these goals to make sure they’re realistic and achievable. These financial statements can then be regularly reviewed to see what is working and where areas of improvement can be identified.
4. Implement technology to streamline processes
When planning for the future, it’s important to acknowledge that technology impacts every aspect of our businesses and is quickly evolving. This can be overwhelming and a little scary. However, by investing in the right technology to help streamline processes it will allow employees to use their time more efficiently. In turn, enhancing productivity and driving innovation. By implementing these new tools and software that can automate repetitive tasks and improve collaboration it will have a positive impact on the business as a whole but also the individuals that work within it. This will also have the knock on effect of improving valuable insight into customer behaviour and market trends.
5. A good customer experience will help businesses to exceed expectations
SMBs should focus on customer experience. By doing so through delivering exceptional products and services and providing personalised support, it will help grow the business as customers continue to return and recommend to a friend. To do this, businesses need to listen to customer feedback and address their needs promptly. This will help businesses strive to exceed their expectations at every touchpoint.
Early on in the financial year can be seen as overwhelming and intimidating, given longer term goals and lofty ambitions are set for the business - without the knowledge of what the year will bring. However, breaking down what the business wants to achieve into clear achievable goals will help it seem less daunting. Using the steps outlined above will help a business to stay on track, set-up growth and innovation - even during tumultuous times.
Cassie Petrie is the Managing Director for SMB EMEA at SAP Concur with over a decade of experience in the business in both customer-facing and management roles. Cassie leads a team that is focused on digital efficiency with the aim of providing the best customer experience, combining technology and teams for maximum client success. You can find Cassie walking, working or negotiating with her children. Cassie's volunteer days are spent in schools to raise awareness of software careers among young women.
