When a client reached out to us in the planning phase, before signing a lease, it was a breath of fresh air and an awesome opportunity to be able to set this business up for its best chance at success. A Business Plan was drafted up, not comprehensive, but more than those that are created on the back of a napkin (sometimes the best type!). It spelled out the vision, mission and how the business will steer through it’s first couple of years of trade. Partnership Agreements were discussed and written up. Again, informal but agreed upon.
Everything came back to the mission statement and the values. Particularly important in a partnership situation, as redirecting the ship is a little more difficult when there are two or more heads involved.
Budgets were drafted and set and actual results are compared to the budget as the months go by. Six months in, the business is doing great, sales are up, but so are wages and some operational changes are required to maintain efficiency and to keep up. Good problems to have!!
Shareholder loans, Director salaries and dividends are all drawn up and agreed upon, subject to certain criteria. There's minimal flying blind, the expectations are set.
From day one, super is paid weekly, PAYG Withholding is sent to a savings account. GST is monitored and also saved for. Money is set aside for the first Business Activity Statement. There's no need to jump on the hamster wheel of ATO payment plans.
HR/Rostering/Timesheets/Payroll systems are set and ready for opening week. It's not long until rosters are set two weeks in advance and easily rolled over. Employees know what is expected of them and what they receive in return. Wages are paid with one simple electronic payment file.
Supplier bills are collected daily and submitted (via photograph or email) to Dext and weekly suppliers payments are made. Again, using one single electronic batch file that is imported into their online banking.
You get the idea! I'm not saying it was all rainbows and lollipops. There were surprises (floods, covid...) but the focus remained on what could be controlled. You still need passion, you still need to work hard and smart, and be a clever operator.
We help our clients out by offering fixed monthly pricing that does not start until trade has begun... to encourage clients to engage with us early and not wait until the last minute or when their employees are screaming for their wages.