Leading financial planner reveals top tips for 'mum and dad' small business owners in 2010
Consolidating bad debts and launching a solid financial plan are just some key financial tips ‘mum and dad’ SME owners are being advised to consider, as economic indicators continue pointing towards a prosperous 2010.
According to leading business accountants and financial planners Quill Group, preparation and careful planning will assist businesses accelerate into the New Year with a renewed sense of confidence.
Quill Group director Kevin Nicol says there is no looking back as business people wish a tough 2009 goodbye.
“2010 promises to be a far better year with consumer confidence, business confidence and the share market all heading north. To capitalise on the year ahead, business owners should be considering what they need to change,” Nicol says.
Fellow Group director Peter Kirk agrees it is important to plan for financial success in 2010 and says it can be as simple as jotting down the goals you wish to achieve.
“Make a list of your financial goals for 2010. Be sure to write them down and put them somewhere you can read them,” Kirk says.
“Set up a separate savings or investment account for any large expenditure that you have planned whether that is a car, holiday or education. Pay off any credit card debt. If you can’t pay off your credit card monthly then use a debit card instead,” he says.
“Try to consolidate any debt and set a figure for principal repayments each month on non deductable or bad debt. Make interest only payments on any investment debt until all other debts are paid off.”
Kirk strongly advises against “impulse buying” and recommends investing some time and money into planning for the financial future.
“Start the new year with some good financial housekeeping. Check your estate plan is up to date and if you have not done a will, make this your first priority. Review your life insurances and check for any missing or small superannuation accounts that you may have forgotten about,” he says.
Quill Group’s Top 10 Business Tips for 2010:
- Set a ‘big hairy goal’
- Revise your financial year budget for the next six months
- Revise or undertake a Strategic Plan
- Upgrade your website
- Focus your prospecting on your ideal customer
- Get the right people on the bus
- Spent time more time with your 10 biggest customers
- Identify 10 new ideal customers and focus on them
- Build a database
- Engage an advisory board around you