It's the time of year to get your books in order.
In part two of this five week retail makeover, fashion finance expert Melissa Brown tells you how pricing decisions can impact your bottom line.With the new financial year approaching in July, there is a lot of talk about goal-setting, planning or New Financial Year resolutions for your business.I don't know about you, but I don't do New Years resolutions.It probably has something to do with the fact that New Years resolutions are usually made while under the influence of many champagne cocktails or in the grip of a raging hangover the next day.Not a real recipe for success. Of course, just because I'm a New Year's resolution knocker doesn't mean I don't applaud goal setting.Some goals, like committing to wear more heels, discarding tracksuits, being able to pay yourself a regular wage in your business or beginning your first investment are worthy goals and should be taken seriously.What I do know is it's what you do once you have the notion of a goal or a resolution that's important. I call this the difference between a wish and a plan.One is a vague notion of an idea and the other involves steps and actions that can turn that resolution into reality. So if you want to create a difference in your business in 2014 but you don't know where to start or how to see it through, here are seven steps to help you on your way:
- Is your goal specific and measurable? Wearing heels more often or making more money in your too business is too wishy washy. Wearing heels Monday to Friday and paying yourself a weekly wage of $1,000 or making weekly sales of $10,000 is specific and can be tracked
- Does your goal get your juices going? If you aren't inspired to achieve your goal then you probably won't bother so make sure you池e excited by it. If you're not excited but you know you need to do it, then find a way to make it exciting. How? Well, if your goal is to make weekly sales of $10,000 then plan what you're going to do with that extra income. It might involve expansion plans, buying an asset or paying yourself a higher wage.
- What steps do you need to take to achieve your goal? Hope is not a strategy so sort out the steps you need to take to make it happen and commit it to paper (or computer). Maybe you to set up a budget that starts from the July 1 and input it into your accounting program, buy a how-to book, talk to a coach, enroll in a course or hire an expert. Write down the steps you need to take, the date that you need to do them by and get started.
- Is your goal realistic? I've 5・10 and if my goal is to be 6・2 then it's probably not going to happen (without the help of a really great pair of heels). Similarly, if your goal is to make sales of $1 million in six months and your last year's sales were $5,000 then you may need to sit down and do the maths to see if it is really achievable. Of course, a stretch target is great just make sure it's within the realm of probability.
- When is your deadline? Are you going to achieve success within a month, a quarter, six months, a year? Set a date and mark it in your calendar. I believe that a date as a deadline, such as December 31, 2013, is much better than within six months. It's tangible and it's not a moving target that you can keep re-starting the clock with.
- Tell people. Nothing makes you stick to a plan like having to front up to people and tell them you're quit. Tell your partner, your family, your friends, your colleagues, social media or blog about it. Then keep these people updated with how you're going.
- Setting the goal is the easy part but seeing it through can be tough so when you do achieve that milestone make sure you take a moment and celebrate! For me, unsurprisingly, the reward is usually shoes. You might be different. Whether you purchase something, go somewhere, treat yourself, go out for drinks or dinner or simply take half an hour and boogie around your lounge room, make sure you celebrate making it.
That's it. The only thing left to do is start.So give your business and yourself the gift of time this month and decide to do something different. Put aside a few hours (or an entire day), grab your tablet, notebook, computer or note-book and simply get started. The only thing standing in your way is you.
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Melissa is CEO of accounting & advisory firm A&TA. For more pricing tools head to The Numbers Lounge www.thenumberslounge.com or email Melissa
melissa@byata.com.au
