If growth is on the agenda for your business in the next 12 months, the start of a new financial year is a good time to rethink your business strategy.
Here are three tips that you could use to put yourself in a healthier financial position this new financial year.
(1) Upgrade your assets
Have you been putting off upgrading your businesses tools, machinery or equipment? Or perhaps your IT hardware (computers, printers, photocopiers)? The 2018 Federal Budget has extended its “instant asset depreciation” scheme for another 12 months. This allows small businesses to immediately write off purchases of up to $20,000 on their tax returns. There are various assets eligible under this instant asset write-off scheme and it applies irrespective of whether the asset is purchased new or second-hand.
The year can run away so take this fresh start to the financial year and start planning now so you can take advantage of the tax break in the next financial year. If in doubt, make sure you check with the resources on the Australian Taxation Office website speak with the Australian Tax Office on 13 28 61 (8am – 6pm AEDT, Monday – Friday), or your trusted financial adviser before making your purchase.
(2) Stop, reflect and reset your goals
With the benefit of a full year behind you now is the ideal time to conduct a health check of your business. Take the time to reflect on and assess last year’s goals and financial performance and get clear and focused on what next year’s goals should be. Do you want to grow your revenue and sales, expand into new locations, double-down on your most profitable customers, or spend more time with family? Write them down and revisit them through the year (at least once a quarter) to keep yourself on track. If you’ve never gone through this exercise before resources like business.gov.au can be a good place to start.
(3) Fund your business growth
If you are looking for business growth in the next 12 months, explore all your options of how you might fund it. SMEs have more innovative financing solutions available today that overcome many of the ‘traditional loan’ pain points.
By using technology and alternative assessment criteria, Tyro Business Loans* remove a lot of admin and paperwork. Based on your EFTPOS transaction history, businesses may be eligible to borrow up to $120,000 ($50,000 for first time borrowers). Repayments adjust automatically with a business’s daily sales, made as a percentage of the daily EFTPOS takings you nominate. This feature helps support cash flow, with slower days meaning smaller repayments. Plus the loan is unsecured, meaning Tyro will not request any additional collateral such as property be provided as security for the loan. For more information, visit tyro.com/business-loans.
*Tyro’s loan is subject to Tyro’s eligibility and credit criteria. A personal guarantee is required and loan repayments are subject to minimum repayment amounts. The “flat fee’ is payable over the life of the loan.