I’m sure like me you’re feeling a little overwhelmed. Despite the never-ending COVID-19 issues and corresponding madness, it’s already February! The excitement of a new year is by now long gone and the reality has surely kicked in. February is also the shortest month of the year and we’ll therefore soon be in March despite getting kids back to school, annual financial year-end and everything else.
So why then is February the MOST important month? For the majority of businesses, the 28th of February is the annual financial year-end. With that comes the opportunity to finish strong, clean house and regroup. You’ve also got the excuse of the financial year-end to chase debtors, promote old pricing, renegotiate terms and generally use the reality of the end of the financial year-end to your advantage. Just some of the areas I’d recommend focusing on are:
- Collect as much outstanding money as possible before the end of the month
- Fire sale anything that hasn’t really moved well over the course of the year
- Review your pricing and consider an annual price increase wherever possible to kick-in from March
- Incentivise bulk buying at the old pricing for February. This could be to your advantage for both your clients and/or your suppliers.
- Schedule staff appraisals for early March based on the performance of the business for the financial year
- Wherever possible renegotiate pricing, terms, contracts and anything else for the new financial year
- Intensively review your management accounts to find cost-cutting opportunities
- Finalise in-depth discussions with your accountant before the end of the month to ensure you’re maximizing any profit your business will return (i.e. bulk Retirement Annuity contributions, Tax-Free Investment Allocations, Journal Entries, Bulk Purchases, Depreciation etc.)
If you’re not exactly sure how to go about these, please make sure you contact your nearest ActionCOACH Business Coach who will gladly assist you with these and many others.
Then despite the madness of this irritating little global virus, know that the current reality will be with us for the foreseeable future. Use the end of the financial year-end to hit the reset button. In business, 1 March is effectively your new year so make sure you plan accordingly. Review goals, budgets, KPIs and prepare for the 28 February 2022 financial year that YOU desire. No-one has anything better planned for your business so best you get to work.
BEhave in the right manner needed and DO the work now to ensure that you HAVE what you truly desire. Your business is your vehicle to serve you, your dreams and your aspirations, so make sure you build it accordingly.
May you, and your business, finish the financial year well. Have a great February and as always … It’s time to get into ACTION!
Harry Welby-Cooke, Country Partner for ActionCOACH Southern Africa