Fire up your small business in 2017

Megan Moran • January 12, 2017

It’s holiday time and with a bit of luck you’re taking time out to recharge your batteries, celebrating 2017 and chalking up your usual list of personal New Year’s resolutions. But what about the batteries fuelling your small business?

Even if you’re working ‘in’ the business over the holiday season, it’s worth carving out some time to work ‘on’ your business. So why not make some New Year’s resolutions for your business too?

Take a business snapshot

Before you start setting goals for the year ahead, you need to clear picture of where your business is right now. What have you achieved in the last 12 months? Were there areas of concern? Are there areas of potential to be tapped? To do this, it may be helpful to examine the key elements of your business. This could include such areas as:

  • Staff
  • Financials
  • Clients
  • Premises
  • Innovation
  • Marketing

A critical element is to make sure your cash flow is working well. Small businesses are often at the mercy of larger business who may make them wait up to 90 days for payment. Indeed, most small business failures are the result of cash flow issues.

Statistics released by the Small Business and Family Enterprise Ombudsman’s office reveal that cash flow is responsible for the failure of 90 per cent of Australian small businesses, with the average small business owed $13,200 at any one time. The total owed to small businesses in Australia was estimated to be around $26 millionⁱ.

So you need to make sure all your debtors pay promptly. You might even consider offering incentives for early payment to improve your cash flow. The start of the new calendar year offers a good opportunity to chase up all your outstanding invoices so that when it comes to the end of the financial year you’re not having to write off a host of bad debts.

Set SMART goals

Once you know where you are right now, then you are on the way to working out where you want to be in the next 12 months.

Goals are central to your business success, but the goals need to be SMART. In management circles this stands for Specific, Measurable, Achievable, Relevant and Timely. There’s no point in creating some fanciful goal that your business has no chance of achieving.

This kind of strategy – small steps, rather than grandiose plans – is far more likely to succeed.

Update your business plan

The goals you set should become part of your business plan. Most businesses would have made a business plan at some stage, as it is the cornerstone to getting a bank loan.

But if you don’t have a current business plan then check out the government’s business portal which has a template to help you formulate one.

Get a jump on tax planning

While you’re reviewing your financials, it’s a good idea to go over your accounts to make sure they are all up to date. Then ask us to check them now rather than at the end of the financial year, when everybody else is busy trying to get their books in order.

Doing this will give you an idea of what your tax bill might be for the year and uncover any problems that may arise. As the saying goes, forewarned is forearmed.

Harness technology

Small businesses are often slow to take up technology due to the time pressures of running a business. The irony is that technology has the potential to save time and reduce stressⁱⁱ.

New technology can be particularly helpful in setting and tracking your goals, monitoring your cash flow and even motivating your staffⁱⁱⁱ.

Running your own business can be hectic, with little time to step back and do some forward planning. So why not come and chat with us to check that you are on track to a successful future.

 

i ‘Aus gov gets serious about late payments’, IT Brief, 21 November 2016

ii ‘These shocking statistics on cash flow show how incredibly stressful life can be for Australian small business’, Guy McKenna, Business Insider, 19 September 2016.

iii http://appadvice.com/appguides/show/habit-building-apps

Do you know how your super is performing?

By Nikki Ashurst • November 2, 2026
Many Australians don't know how their super fund has performed or what it invests in. Are you one of them? Here's what to check and why it matters. Do you know how your super fund performed over the last two years? Many Australians don’t and are working towards their financial future without fully understanding one of their most important assets and without a clear plan for how their super may support them in retirement. That's not surprising, as many people view super as something that should run quietly in the background while they're busy with careers, families and everything else that life throws at them. But when you’re not sure what’s happening behind your balance, it’s harder to know whether you’re on track, whether your current approach reflects your goals or what opportunities might be available to help you make the most of what you’ve built so far. Your super isn't sitting in an account, it's invested Super is invested by a fund on your behalf across a mix of assets, with those investments working to grow your balance over time. Those include: Shares Ownership in Australian and international publicly listed companies. Their value can rise and fall, sometimes substantially over short periods but shares can provide capital growth over the long term. Property and infrastructure Real assets like office buildings, shopping centres, airports and energy networks. They can produce income and don't always behave in the same way as share markets, helping diversify investment holdings. Fixed interest and bonds Lending to governments and companies in return for interest. They can provide regular income and be steadier than shares, although returns and risk vary depending on the investment. Cash Generally, the most stable and lowest risk investment type. It can provide stability and faster access to money but typically offers lower longer term return potential. The investment option you choose determines the mix of assets held in your super based on your risk appetite. Most super funds offer options from conservative to high growth. If you’re young, a growth option with a higher exposure to growth assets like shares could offer higher returns over time – but it also comes with higher risk. As retirement nears, you might want to consider a more conservative approach with more defensive assets, like bonds for example to protect your savings. If you've never made a choice, you're probably in your fund's default option, which is designed to suit a broad membership. It’s worth knowing whether the mix you're in matches your circumstances and goals, including how far you are from retirement. Why performance alone is not a true comparison If you're thinking about how your super compares, returns are often where people start. The trouble is that a return figure means nothing without context: What it's being compared to Growth and conservative options invest differently and with different levels of risk. Compare like with like or the comparison may not be genuine. The comparison period A single year can be heavily influenced by short term market conditions. Super is measured in decades, so five, seven and ten year returns tell you far more about whether a fund is consistently doing its job, albeit not a predictor of future performance. Fees and tax Published returns should reflect investment fees, costs and tax but administration fees may be charged separately from your balance. Two funds quoting the same return can leave you in meaningfully different places once all fees are accounted for. Then there are the things that returns can't show you at all. For example, what insurance is attached to your account and what it's costing you, whether the fund offers guidance, tools and advice or simply sends a statement once a year. Another consideration maybe the level of support available when you need it. When comparing funds, it's worth looking at the full picture, including performance, fees, investment options, retirement support and member benefits. What today’s decisions mean tomorrow To understand how your super stacks up, start here: Find your investment option It's on your annual statement and in your online account. Look at what's in it Your fund publishes the asset allocation (shares, cash etc.) for each investment option. Check the long-term return for that option Focus on five and ten year returns, not just last year and compare them with equivalent options. Understand the total cost Add together administration fees, investment fees and insurance premiums as an annual dollar figure. Comparing super is about working out which option will perform best for you. Before you jump in, it’s worth understanding what's behind the numbers so you can make decisions based on more than a headline return. Knowing where you stand is the first step A super balance tells you where you are today. Understanding how your super is invested, how it compares and whether it's aligned with your goals helps show whether you're heading in the right direction. Source: MLC The information in this article does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Capstone Financial Planning nor their directors, employees or authorised representatives gives any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document. Principal Wealth Management Pty Ltd trading as BMO Financial Solutions ABN 53 109 336 601 is a Corporate Authorised Representative (CAR 277821) of Capstone Financial Planning Pty Ltd ABN 24 093 733 969 Australian Financial Services Licence (AFSL) No. 223135.

The SMSF landscape is changing

By Jude Schofield • October 7, 2026
More Australians are choosing to take direct control of their retirement savings by establishing a self-managed super fund (SMSF) and according to the SMSF Association, Aussies now see their super as an important part of building and managing their overall wealth.