Here are some great tips and things to consider as we roll into 2024.

Team Members

• Have you reviewed your Human Resources Manual? Are any updates required?
• Do you normally conduct team member appraisals at this time of year? Have these been done?
• Have you conducted a survey of team members on their suggestions to improve services to your customers?
• Is there a need to discuss productivity improvements with team members?
• Are you receiving regular input from your team members on operational issues?
• Are regular team member meetings held?
• Have you encouraged the formation of teams within the business? The team could consider ways and means to improve business productivity and performance.
• Have you empowered team members to exceed customers’ expectations?
• Are there any changes necessary for the team training program in 2024/25?
• Do you conduct exit interviews with any team member who resigns?

Gross Margins

• Are you happy with the key margins being achieved in your business?
• Gross Profit Percentage?
• Labour to Turnover Percentage?
• Net Profit to Turnover Percentage?

Debtors

• Are you receiving a monthly debtors’ aged analysis within 2 working days of the end of each month?
• Are you calculating debtors’ days outstanding each month? How does the days outstanding compare to your budgeted figure?
• Are you going to change any of your policies or procedures for debtors in 2024/25?

Products/Services

• Are any new products or services proposed to be introduced? Have these products or services been subjected to intensive review by the team?
• Have any focus group reviews been conducted?

Bank

• Are there any concerns in your relationship with your bank?
• Do you need to make any operational changes in 2024/25 to enable the business to comply with your bank’s lending requirements?

Insurance

• Have you completed a detailed review of your insurance requirements for 2024/25?

Suppliers

• Have you thought about approaching some of your suppliers for assistance in 2024/25? Assistance could include:
• price reduction;
• longer payment terms;
• promotional assistance;
• joint submission to major prospects; and
• assistance in marketing campaign to compete with competitors.

Wastage, Theft, Pilferage

• Have you quantified the cost to the business from wastage, theft or pilferage?
• Have the team members been informed of these costs?
• Have you developed policies for 2024/25 to try to reduce these costs?

Cashflow Management

• Have you factored in the increased interest rates in your budgeting? Should you be considering trying to lock in a long-term fixed interest rate at this stage?
• Have you reviewed your debtors’ days outstanding? Can strategies be introduced in an attempt to reduce debtors’ days outstanding by the utilisation of a debtors’ reduction program?
• Have you considered the stock turn being achieved from individual products, sections or departments, within your business?
• Are the stock turn rates acceptable? If not, what can be done to improve the stock turn rate (eg. relocation of the stock to a better display area, price adjustment, ceasing to handle this type of stock, better promotion)?
• Does your investment in work in progress exceed 30 days of WIP? Does this mean that progress claims are not being raised regularly?
• Are some jobs not being deliberately finished, so there is a ‘delayed management review’ on the performance of a particular job?

Succession Planning

• Have you developed a succession strategy for your business?
• Have you prepared a summary of the succession strategies that require implementation in 2024/25?

Business Plan

• Have you reviewed your business plan and determined any changes to be implemented in 2024/25?
• If you haven’t prepared a business plan, should this be one of the priorities for 2024/25?

Now is an ideal time to talk to us about business development strategies for your business, particularly relating to:

• a business health check
• business evaluation workshop
• cashflow management, including:
  • debtors
  • stock
  • work in progress reviews
• business plan development for 2024/25
• budgets & cashflow forecasts for 2024/25
• leadership review
• succession planning
• buying a business – if you’re contemplating expanding your business operations
• selling a business – if you’re planning on selling your business
• bank’s/lender’s review
• gross profit analysis review
• break even analysis
• Tracking of key ratios
• sales targets and calculations of “what ifs”
• surviving in difficult times
• catching up regularly (monthly or quarterly) to review the business and keep it going in the right direction

We can help you build a business that works without you. Our Business Advisory Work is suited to all small to medium sized businesses that would like to run a better business. From analyzing where you are currently to assisting to plan and implement your end goals.