How to create a transformational strategy for 2019
How was 2018 for your business? Did you have a great year and achieve all your goals? Or did you just stay afloat? If you would like a more successful year in 2019, now is the time to think about implementing a transformational change strategy.
In the business world, transformational change requires a business making radical changes in their business model, often requiring changes in company structure, culture and management. Companies may undergo transformational change in response to crisis, or in order to re-position themselves in the market. Transformational change also occurs in response to changes in technology, or as companies adapt to take advantage of new business models.
Truth is, when a dramatic shift in consumer behaviour or a new competitor enters the market, transformational change becomes a matter of survival if a business is going to be able to keep up with competition and move forward. As we all know, many business transformations fail. In a recent McKinsey Quarterly survey, only 38% of leaders believed their transformation had a “completely” or “mostly successful” impact on business performance.
There are 3 core parts to achieving a successful, effective transformational strategy. They are:
3. Process of Change
The way in which change is planned, designed, and implemented, how it unfolds, its road map, governance, and course corrections.
So you want transformational change for your business, where do you start? Here are a few things to consider and think about when creating the business you want:
- Magic wand time – If you were to achieve the business or personal goals of your dreams, what would that outcome look like? Your business should be able to provide you with the lifestyle and business you desire. Be very specific as you imagine exactly what your outcome would look like in terms of work, health, family, love life, finances, and also in fun.
- Entry points – These are the means of moving away from the “find it, fix it” modes of solving problems and moving towards the first steps that would advance you towards a new goal. For example, saying “I’ll get fit when my business is thriving and profitable” is a “find it and fix it” approach. But what about finding a way to begin steps in the right direction towards greater health and fitness right away, beginning today?
- The driving force of your values – What are the values that define you most heavily when you run into a stumbling point or a roadblock? Which ones represent your finest and highest priorities and goals? It is important to use these values as a roadmap for your desired destination, the author maintains.
- Speedbumps, detours and roadblocks – Many times on the path to dramatic achievements we feel stopped or entirely stuck. These are chances to cast our occurrences into a broader light for further reflection on what these experiences are meant to teach us, and how we can use these obstacles to help us instead of slowing down or preventing our ability to achieve remarkable goals.
- The power of your vision – The expression “If you can’t see it, you can’t be it” holds strong weight. It is vital to understand exactly what your outcome will look like. Using a Vision Board can be a useful exercise for this. Have you ever sat down and thought about what you really want your business to look like? What do you desire?
- Acknowledging where the gap is – What is out of alignment that is standing between you and your goal? How could you reconcile this chasm? Instead of fearing or resenting the space between you and your desired achievement, learn to “lean in” to that empty space and take steps, knowing that you will require time and help and even without the exact knowledge of how you are going to get to the goal. Now it becomes achievable. What are your gaps and what can you do to fill them?
- Software and tools that add value – This one is an important one to consider. There are always ways to be more efficient and effective with your business by having the right software and processes in place. Take your accounts for example – are you able to get the right data and information from them? Are your accounting processes seamless or are they causing you stress? According to Xero, there was a 24.9% growth in New Zealanders getting onto Xero. Image how well your business could do with the right tools in place.
Tip: Use a hybrid model – During a transformational change effort, acceptance hinges on hybrid methods that tailor the tactics and solutions to the people, processes, tools and infrastructure components.
To find out more about how GoFi8ure can help with your internal accounting processes, systems and software requirements, send us a message or call us on 0800 463 488.
Why use Xero? The benefits of cloud accounting
Xero offers your business a simple, yet powerful, way to manage all your finances in the cloud.
With Xero as your core finance system, you get real control over every element of running your business, from basic bookkeeping right through to efficient online invoicing, live bank feeds and detailed financial reporting. And that’s not all…
A beautiful business platform
Xero is also a fully functioning business platform, with an open architecture that lets you plug in online payment solutions, time-tracking apps or job-management tools. So whatever sector you are in, there is a range of apps to customise your Xero system.
With Xero as your cloud platform you get:
- A mobile way to check your numbers 24/7 – with online access from any device
- A paper-free office environment – with secure storage of your documents in the cloud
- An all-in-one cloud platform – with a host of features, apps and third-party solutions
Talk to us about switching to Xero
If you want an accounting system that is also a highly flexible business platform for running your company in the cloud, talk to us about switching to Xero.
Excellence in Business
It is very easy to get comfortable with just being good in the business world. Being good at what you do means all is well – things are moving the way they are supposed to, and everything is under control. The financial equivalent of this, known as “treading water”, does not equate to success but rather, stagnation. In business, just as in nature, it is always better to be proactive then reactive when striving for excellence. By focusing on constantly pushing yourself and your business to be in a constant state of growth, both yourself and the company you lead will be constantly evolving and improving ahead of your competitors.
Here are some thoughts to keep in mind for yourself and your business as you strive for business excellence:
1. Realise that there is always room for improvement
It is very easy to say “I’m good” and leave it at that. Google is famed for saying “We are Always in Beta”, and Business Insider once published an article “Always Be in Beta or You’ll Never Learn Anything New”. The article mentions the value of learning, as learning keeps stagnation at bay. It also states, “in the early stages of learning a new subject, people feel as though they have nothing to lose, which makes them more likely to accept failure as part of the process.” This mentality will enable you as a business owner to add more power and range to your skill set, as well as become more comfortable with the risk that comes with learning curves.
2. Do not get too comfortable
Ignorance is bliss, but it is also dangerous, which is exactly what getting comfortable in the business world defines as. While you are sitting back being comfortable, others are advancing, strategising and closing in on any distance you have put between yourself and your competition. Strive to stay relevant and vigilant, and remember that success is not a destination, but rather a goal which constantly evolves and manifests with the company’s growth itself. Think of your business as an athlete; there is no such thing as a comfortable and effective workout.
3. Do not give your clients a reason to go elsewhere
We are all human, and sometimes mistakes are made. However, there is no reason why you cannot apologise, provide feedback and agree on a solution to fix these mistakes with your clients to retain their business, and look for ways to improve. At the very least, you should make sure that you are doing a better job than your competitors. Even if you feel you are already doing this, it is worth asking yourself a couple of times a year, “if a competing company opened tomorrow, would I have any reason to be worried?”
If you would like to talk to GoFi8ure about how we can make your business more excellent send us an email.
What are the four most important areas you need to consider in your business?
As a business owner, you must be committed to constantly evaluating your business practices and making the necessary changes if you want to see growth. If your business is stagnant, or not as profitable as you would like it to be, doing the same thing repeatedly will not help your business move forward. Your success is the total sum of all the decisions you make!
So, what are the four most important areas you need to consider in your business? They are:
Good decisions equal success. Even though most growing businesses face continual challenges in all these areas, the challenges in one area at any one time can impact the others.
Let us start with the “People” strategy.
In 2016, Warehouse Stationery conducted a survey of over 1000 of their BizReward customers. From that survey, 9 out of 10 customers were small businesses.
When asked about the personal challenges they faced in business, half of the respondents to this question (51%) selected work-life balance. Work-life balance was the most common concern, followed by time management (41%) – which is a necessary tool to achieve the sought-after work-life balance, by ensuring work does not take over every aspect of your life.
One of the most critical components of growing any business is working with the right people. Get it right, and your business’s growth trajectory is likely to continue, or accelerate. Get it wrong, and your tentative step forward might lead to the proverbial three steps back. The purpose of hiring staff or outsourced specialists is to free the business owner from some of their multiple “hats”, and the wrong hire can have the opposite effect as it can be costly, stressful and time-consuming to manage the consequences. Having someone who fundamentally understands their role, and what is required to do it successfully, is crucial for any business.
Where do you start? Ask yourself why you need to hire someone – and do not accept obvious answers such as, I am busy, tired or overworked.
Below are some core questions you should ask yourself:
- What do I expect the new hire to do in their first month, and in the months that follow?
- What can I reasonably expect them to achieve, how quickly, and what can I do to help them?
- What core skills and attributes are absolute necessities for my business?
- Is an employee the right way to go, or should I look at outsourcing?
The last question is an interesting one. There are advantages for either hiring an employee or outsourcing to a specialist. To make this a little easier for you, we have put together a list of steps that will help you determine which option is best for you:
- Identify what areas you can outsource.
Before you figure out whether to outsource, you need to identify what areas you can outsource, and whether any of these areas are where you need help right now.
- Identify business-critical functions.
If the function you need help with is not a core function of your business model, outsourcing will probably create fewer headaches for you.
- Assess the market availability of skills.
You may prefer having someone in-house, but if you cannot find the right talent, outsourcing may be your only option.
- Identify all the costs for both in-housing and outsourcing.
When you are considering the financial difference between the two options, remember to include the costs of your time and emotional energy. While hiring in-house is generally cheaper on paper, there are a host of responsibilities that go along with managing a new staff member including holiday and sick leave, training, downtime, and so on.
Remember, when it comes to making the decision of in-house or outsourcing you do not need to choose either/or; it is pretty common that one part of your business may be better off with an employee, while another may be better off with an external company managing it.
If you are ready to outsource the financial side of the business come then you need GoFi8ure. This is what we do – it is in our DNA and we are passionate about helping ease the accounting pain that business owners face. Send us an email or call us on 0800 463 488 today.
Tip: Gazelles has a one-page “People” tool that will help you sort out these accountabilities and metrics.
There are only 10 more sleeps until the End of Financial Year – are you prepared?
For many the 31st of March feels like a huge milestone on the calendar. It can be a busy and frenetic time, and can feel even more stressful for business owners. Add to that Easter and it feels overwhelming! However the end of financial year process need not be a painful one! Read on to find out how.
A recent US study found 69% of adults attribute their stress to “money-related” issues and, as the End of the Financial Year (EOFY) draws near, it is typical for thoughts of money and dreaded taxes to dominate our mental space and drive us to despair.
To help take some of the pressure off GoFi8ure has prepared some simple steps for you to follow in your accounting software so that EOFY feels more manageable:
Step 1: Gather your paperwork aka “source documents”
The more information/paperwork you give to your Accountant, the less time they need to spend chasing you (which costs time and money). Late April GoFi8ure will be running a webinar on how to prepare your Xero EOFY file for your Accountant. Click here to register your interest for this webinar.
Go through your files and emails and collate your source documents (Statements, Invoices, Receipts etc) for your accounts.
Paperwork includes at a minimum bank, credit card, loan statements as at the 31.3.2018, copies of all fixed asset invoices purchased during the last financial year, GST work papers and returns/receipts to IR, year to date payroll records, ACC invoices, insurances and premiums, legal, repairs and maintenance, lease expenses, finance agreements, use of home office, out of pocket expenses and year to date personal tax information if you are a shareholder. Depending on the complexity of your accounts you may need to provide more examples of source documents. Your Accountant will ask for these so be prepared.
Tip: Use Xero’s File Library to upload all of your paperwork/source documents as PDFs. It is really easy to do and your Accountant will love you for it.
- On the top banner (right side) of your Xero account click on the file icon (below)
- Create a new folder called EOFY2018 (below)
- Label each file with a clear name. For example: 00 Savings Bank Statement 31.3.2018 or ACC Levy Invoice etc
- Upload labelled files into the electronic folder – it is that easy! This will keep everything your Accountant needs in one easy to view/access location in the cloud
Step 2: Complete a Stock Take / Stock Valuation
If you are carrying stock, you are required to do a stock take to record how much and the “value” you have on hand as at the 31st of March 2018. The figures should be at cost, excluding GST. It is important when you are dealing with stock that you use the best tools available. Whatever tracking system you use, make sure you have the right software to support it. If you are currently using Excel spreadsheets to manage your inventory, you may want to consider moving to a cloud based inventory system like Unleashed.
An effective, easy-to-use inventory system eliminates human error that can occur whilst using Excel. Inventory software gives you real-time inventory control and reporting. It also helps you to understand your product margins and provides you with important information to help you make better decisions based on real-time, accurate profit reporting.
Step 3: Round up those overdue invoices and debt collect
Review your Aged Receivables detail report and identify all invoices that are 30+ days overdue. Once this has been done make one final determined effort to collect the debt before the 31st of March. If you have exhausted all avenues for collecting unpaid invoices and do not envisage collecting them at any point in the future, you can write off the outstanding invoices to a bad debt expense. Contact us to find out how.
Tip: If you are going to write off any outstanding invoices; make sure to apply a credit note against the invoice owing. We do not recommend using the “void” option in your accounting software.
Step 4: Review Creditors entered and reconcile to Supplier Statements
Do you have outstanding supplier invoices showing on your ledger? Are you confident that these are correct? GoFi8ure recommends that you reconcile all creditors to supplier statements and balances before the 31st of March to ensure any missing invoices are received and entered into Xero. You may find that some suppliers have in fact been paid, however, the payment was not allocated against the supplier invoice. If this has happened it is important to correct it soon as possible.
Need help actioning a creditors reconciliation? Join GoFi8ure’s webinar in April or send us an email to book in some customised Xero training.
Tip: If you are disputing an account or are no longer paying an invoice then you should apply to the supplier for a credit note and once received reconcile the credit note to the invoice in your ledger (creditors reconciliation). If you would like accounting support please contact us.
As March draws to an end, make the conscious decision to take action with steps 1-4. If you would like GoFi8ure to take your end of year stress away and do these steps for you, get in touch with us today via email or call us on 0800 463 488 and quote EOFY Help.
At GoFi8ure we pride ourselves on being Members with Accounting Associations. A big congratulations to Lisa who become an official Member of the Accountants + Tax Agents Institute of NZ (ATAINZ) this week.
The Accountants and Tax Agents Institute of New Zealand (ATAINZ) exists to promote the welfare and professional development of its members and to represent members’ interests in New Zealand. It is unique in the New Zealand tax and accounting market because of its grassroots contact with members.
Being a Member of ATAINZ means each Member must comply with our Code of Ethics, which covers four main areas: integrity; trust and confidence; standards of service; and professional conduct. If you are looking to worth with a professional accounting firm come and talk to us. We take our our services and the quality of our work seriously. Email us to find out more.
Regularly reviewing your company’s financial fitness will keep the business watertight, says Lisa Martin of GoFi8ure.
Funny isn’t it, that when we talk about financial fitness, many bosses start to glaze over. And yet the monetary side of things is the main reason businesses start up in the first place.
To read the GoFi8ure’s article which has been featured in the October/November 2017 NZ Plumbers magazine – click here to read it.
Wow make sure you check out the Dominion Post (11th October) pages B7 & B8! “Lisa Martin’s business is all about helping businesses with their business accounting”
This is pretty exciting for us to get such a big wide spread feature. Make sure you head to the Career Market section and check out the 2 page feature. Find out how Lisa Martin put her skills and passion into creating a solution every business needs and how GoFi8ure is helping ease SME’s pain points with their business bookkeeping and accounting.
For all your bookkeeping and accounting needs please contact us for your complimentary assessment.