meeting for business appraisalHow to future-proof your business

We can’t predict the future as the world has found out in 2020. But in business, it’s crucial to prepare for it.

No matter what the future has in store, as a business owner, you can take calculated measures to ensure your business has what it takes to weather any storm.

Want to set yourself up for success and minimize your stress?

Future-proof your business.

If you are a small business owner, it’s particularly important that you take charge of your business’ future and do everything you can to prepare for unknown outcomes. That’s why we’ve narrowed down the future-proofing process to the top three things to do to succeed as a business owner.

3 Ways to Future-Proof Your Business

1.Know your numbers.

Why do small businesses fail? One of the most common reasons is that owners don’t know their numbers.

Knowing your numbers is the key to succeeding in any business, in any industry. You need to make sure your business is profitable — or in the case of a new food business, on the path to profitability — and that you have a good grasp of your margins and expenses. 

If you know your numbers intimately, you’ll be able to set measurable goals for the future that are realistic and more likely to come to fruition. Whatever you need to do to get a firm hold on where your money is going and how it’s coming in, do it fast.

2. Get the help you need.

Successful small business owners tend to be self-starters. They’re some of the most motivated individuals you’ll ever meet with intelligence and talent to spare.

But another common theme, especially among new business owners, is a pervasive do-it-yourself mentality. That is, small business owners tend to put too much responsibility on themselves. It can be a fatal flaw that will take you down quickly if you don’t learn to outsource soon.

For starters, everyone needs a good accountant that works in their best interest. A good accountant should know  about your accounts as early as April, three months before the end of the financial year.    As a business owner,  you should be ensuring there is money put away to ensure taxes can be paid when due.

If you’re not adept at advanced analysis and predictions, work with a good bookkeeper to help you make accurate financial forecasts. It’s one thing to create spreadsheets; it’s another to analyse them properly and determine where things are going both right and wrong.

Most of us aren’t exactly comfortable with these tasks, so it makes the most sense to hire an experienced bookkeeper who can help.

3. Set goals.

Setting goals is 100% crucial to future planning for your small business.

The best approach? Break down the process that will be required to actually reach your goals.

All business owners want to earn more profits, but most do not break down how they will get there on a practical level. 

Another key to future-proofing your goals is to have important reasons behind them. This is a critical step that many small businesses miss. There needs to be a deep desire present to achieve anything in life, including business. Knowing exactly why you want to improve your revenue or grow your business — and bringing your team on board with these reasons — will help you stick with your plan and reach your goals. 

Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.