Spring clean your business
With end of financial year out of the way, there's no better time to spring clean your business. Valerie Khoo reports on how to get started.
Many business owners are often so caught up in generating new business and managing the day-to-day running of the venture, it leaves them little time to clear out the dead wood that may be holding back the business.
Make your systems work for you
One of the first steps in the spring cleaning process is to review your current documentation and procedures. Amanda Sarden is Managing Director of The Organising Place, a Sydney-based company that works with companies to improve efficiency. Sarden says businesses can lose thousands of dollars due to the time wasted because of a lack of systems.
"Document all your systems and see where areas can be improved," says Sarden. "Ensure that your processes are clearly defined – and written down in an operations manual or equivalent – so that anyone who steps into any role can see what needs to be done."
Your office files may also need some attention. Experts estimate that 60% to 80% of files are never looked at again.
Is your technology out of date?
Pete Sandel, Director of information technology consultancy geezit, says large companies generally lease all their computer equipment and turn it over when the lease expires, which is usually between three to five years."Whether an SME leases or buys, it makes sense to follow a similar time frame," says Sandel. "When you are negotiating for the equipment, it's worthwhile to go for an extended warranty option, ideally with onsite repair. Once a warranty is up, you should seriously consider upgrading your machine."
Sandel says another sign that it is time to upgrade is simply when your machine is taking much more time to run programs than it used to. "However, before you do anything drastic it's useful to consider removing temporary files and unwanted software and programs. You may find that your computer operates faster without this extra burden."
Are your staff right for the business?
Life By Design's Ian Hutchinson is an employee engagement expert and has worked with five of Australia's top ten companies and businesses that want to gain Employer of Choice status. "Sometimes, in helping employees work out their personal career goals you may run the risk of losing staff who want to explore other options," says Hutchinson.
"However, this can be seen as a positive move. You want to retain employees who are motivated and who really want to be a part of your organisation. There's no point in trying to keep staff who – in their hearts – want to be somewhere else."
Spring clean your credit
If your business has multiple lines of credit or various loans, you could reduce your interest payments and administration charges by consolidating your credit into a single loan.
"There are a number of ways NAB can help you achieve this," says Rob Elliot, Head of Business Lending at NAB. "You could consolidate multiple loans into one loan agreement or consider a product like NAB Business Plus. Essentially, this is a line of credit facility that incorporates a business transaction account and overdraft for your day-to-day transaction and expense requirements. The facility can also be used for longer term consolidation or growth finance as well."
"Businesses should also consider ways to streamline reporting procedures," adds David Fodor, Head of Commercial Cards at NAB. "For example, your business may have a number of employees who are reimbursed for company expenses they have incurred at the end of each month. This can be unwieldy. A NAB Business Card can help you manage these expenses," says Fodor. "You'll receive a detailed monthly statement for each cardholder, including a convenient summary table of the total purchases your staff have completed."
Valerie Khoo is editor of Business View and contributes regularly to The Sydney Morning Herald.