The Keys To Success & Profitability

As there are so many facets of running your own business its sometimes easy to lose sight of what's actually important and what impacts on your profitability. The following tips are useful to keep in mind when going about your day to day activities. They'll help you be aware of your business's position and will keep you on track to maintain and even increase your profitability.

  • 1

    If you offer a product manage your inventory levels and know how much time is takes to convert a product into a sale.
  • 4

    Know your breakeven point and monitor your progress.
  • 7

    Be aware of how much GST you owe. Records need to be kept of GST collected and GST credits that are claimed as part of the BAS reporting process.
  • 2

    Reconcile your bank, credit and loan accounts. This is done by cross checking your records againt the relevant bank statements.
  • 5

    Know your cash position. Keep watch of how much money is coming in and going out.
  • 8

    Control your withdrawals so that you can maintain working capital cash reserves to cover the cost of operations.
  • 3

    Know how much your expenses are and whether or not they are reasonable for the product or service you are providing.
  • 6

    Maintain accurate payroll records in line with your legal obligations.
  • 9

    Follow up on who owes money to you. If you offer credit to your customers make sure you give them a firm timeframe by which they must pay any outstanding monies owing to you.