As we move into a new year, what things should we be doing to get optimum results in 2015? A variety of experts have given advice for the year – here are some of their thoughts.
- Keep it Simple: It’s always good to start with Warren Buffett – the world’s most successful businessman. He says only get involved with what you are familiar with. If you hear a “hot tip” in an area you are unsure of, ignore it – it’s no different to gambling, where we invariably lose. Making money is a long term thing and your best chance of maximising your returns is in the ambit of your expertise.
- Budget Carefully: Use this process to fully understand your business. Where does your income come from and where are the cash outflows going to? Focus on the areas you control and look for avenues to grow revenue or reduce costs. Over time small items can significantly grow your wealth. Don’t forget how powerful the compounding effect is – 2% now could be quite significant in a few years.
- Reduce Debt: Remember we have been through an era of unprecedentedly low interest rates. The United States will almost certainly raise interest rates this year and the world will follow suit. The lower your debt, the greater your financial flexibility.
- Network: One feature common to successful people is their ability to network. The world is changing rapidly and getting diverse opinions will help you get to grips with the important trends which will impact on your organisation.
- Continually look afresh at your business: On a monthly basis analyse your business. Why are there variances in the management accounts? Is the marketing strategy working? Am I maintaining my sales margins? Remember management is about planning and taking corrective action.
- Treat Customers like Guests: We always make a special effort when we have house guests. Treat your customers in the same way. If you look after them well, you have gone a long way to keeping them and growing your business with them.
- Give to a Charity: How much you give is up to you but 83% of people like being part of something that helps the less fortunate. Let your customers know they can be part of a philanthropic endeavour and watch your business grow.
This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.