16 Jun Why Success is Dependent on the Actions You Take Daily
With the new financial year nearly upon us, it could be time to consider the results you would like to produce both in your business and personally for the 6-12 months ahead.
The reality is over 90% of business owners don’t really have any clear idea about the results they would like to produce in the month ahead, let alone the next 12 months. Many are clear on what they ‘don’t’ want! If you are one of the 10% or fewer of the business that has some clear, written, and specific goals/results you would like to produce, then the following will be of benefit.
It has been said that your daily habits reflect how you invest your time and energy, and therefore the quality of your focus. If you start to live your daily habits and there are aligned with your priorities and goals, you could accomplish and produce the results you are looking for.
The following is a 5-Step approach to achieving your goals in the year ahead, or in any area or any time of your life.
- What specific results you do want to experience?
- What are the key ingredients required to create this?
- Determine the priorities
- Know the specific actions
- What are your daily habits?
Here is an example:
- Specific Results
Peter is an electrician who has a #1 objective this year to manage his cash flow much better than in previous years. His specific goal is to always have $50,000 in his trading account.
- Key Ingredients Required
• Monthly cash flow forecast
• Invoice as soon as possible after the job is complete
• Increase his prices
• Consistent gross profit margin
• Improve job/labour productivity
• Follow up debtors promptly/automated
• Put aside an allowance for profit first
• Monitor profitability of all jobs
- Main Priorities
• Review invoicing and debtor management systems and procedures
• Review pricing model
• Renegotiate terms with suppliers
• Redo contract with a review on payment terms with customers
• Choose a job management software that syncs with Xero
- Specific Actions to Take
• Schedule 1 hour weekly to work on financial systems
• Implement an automated debtor follow up software
• Set up separate bank accounts for tax, profit, salaries
• Implement team KPI’s on productivity
- Daily Habits
• Check cash flow forecast
• Ensure invoicing has been completed and sent off for complete jobs
• Read up on financial awareness
In this case, the daily review of cash flow forecast, ensuring that invoicing is on time and the profitability of each job should only take 20 minutes, however, the discipline to do this daily will be reflected in producing key results in the long term.
Although business is not easy, it can be kept simple.
Written by Jon Mailer
CEO of PROTRADE United