The impact of decision making in your business

As a business owner, you make hundreds of decisions daily… What task should you prioritise…? How should you respond to a particular email…? How can you increase your sales…? Is it wrong to take Christmas holidays in July…?

The list is endless.

Because we are frequently making these decisions, we don’t often stop to consider the importance of decision-making in our business and how these decisions can impact our business performance and even our profitability.

Heading into the new financial year, we thought we’d touch on this prudent topic and particularly understanding how this process of decision making can best serve you
business and goals.

An example! Say you’ve had your planning meeting with your accountant and they’ve assessed that this financial year you need to increase your profitability by 10%. That then becomes a business goal or a key driver. With that goal, there will be 100’s of decisions around how you’re going to make it happen…
Is it investing in marketing, is it cutting costs, increasing productivity… is it a mix of everything?

If we cut corners, don’t sufficiently plan or ask the right questions, we then can’t make informed decisions that will get us to our goal in the least amount of time, using the least amount of resources.

Most business owners have experienced this at some level, perhaps investing in a marketing campaign because it worked for another business, or spending money on hiring new staff to increase productivity when it could have been solved by tightening processes.

The goal is not to waste time and resources on decisions that don’t drive your business. It’s fair to say that we won’t get it right every time, but it pays to make it a consideration!
So how can we make the right decisions?

Here are some decision-making solutions for you:

1. Understand your business drivers (aka know ya numbers!)

Of course, the accountant says know your numbers! But seriously, analyzing your numbers at the end of the financial year will give you such an advantage when strategically planning your next moves. You need to know where your business is nailing it and falling so you focus your energy in the most effective place.

2. Plan your yearly activities

Full disclosure, the biggest marketing flops our business have had is when we don’t strategically plan them out. That’s right…we have tried and tested that uninformed decisions produce less than viable outcomes. If you sit down and visit your marketing activities every quarter you can keep on top of what works, what doesn’t and most importantly how the decision ties back to your overall strategy.

3. Create a yearly budget or forecast

Just like planning your business activities, a budget will help you to predict how your business may perform if particular strategies, events or plans are carried out. It’s the perfect accompaniment to making decisions, and it will allow you to determine your course of action over the year. It also lets you know if those decisions you made gave you the outcome you wanted! Without a benchmark, how would we know if we are doing well or not?

4. Work with a trusted adviser

We love working with our small business clients to assist them in making informed decisions about what’s next in their business.

If you’d like to work on making the 2020 financial year your best year in business, then call us today on 03 8838 8726 or click here to set up an appointment with our experienced team of accountants.

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Nishant Kosambi
Nishant Kosambi
2 February 2023
Excellent work by Dayan, Chamie, Lihini and the entire team. They have always been very professional and helpful. They have taken care of my business and personal tax obligations for many years. They have also sought financial solutions for me. I am very happy with how thorough Dayan is with his work. Clear communication and regular follow-ups all the way. 5 stars for this gem of a person and his team.
Ajith Ratnarajah
Ajith Ratnarajah
6 November 2022
These guys are very professional. You get the best of both worlds of a personalised service from a company rather than from an individual accountant. Their processes are well established. I would strongly recommend Opulent for any small, big companies and high net worth individuals.
Da Bella
Da Bella
12 August 2022
I consider myself extremely luck to be introduced to Dayan and his team. I found the solution to my loan requirement in one meeting itself...Super efficient, friendly and humble....Opulent finance rocks!!
srikanth chintalapudi
srikanth chintalapudi
11 July 2022
Dayan and his team did it again!!! They're proactive and provided timely advice in the recent sale of my investment property. They're advice saved me a lot of $$. Dayan and his team have been assisting me for the last 10+ years and they're always a lifesaver. Highly recommend!
Chamith Subasinghe
Chamith Subasinghe
15 February 2022
The team at Opulent have been extremely helpful and resourceful in securing a home loan for me. The responses have always been quick and progress made quickly through the loan application process. The advice provided by Opulent is high quality and very useful, special call out to Ishara and Dayan who have been very knowledgeable, experienced and professional. I have recommended Opulent to my friends and they have had positive experiences as well. I would highly recommend giving Opulent a go!
Daniel C
Daniel C
26 December 2021
Highly recommend Opulent Accountants! I've been lucky enough to deal with Hasi, Dayan and Charlene and all three of them have been a great help. Thanks guys.
5 November 2021
Great Accountants and Mortgage Brokers. Prompt, Professional, Well-informed and Responsive.
Kesh Aryaratne
Kesh Aryaratne
11 October 2021
The team at Opulent are professional, accessible, friendly and most importantly prompt in getting matters sorted. I have had the pleasure in dealing with both Dayan and Hasi who have guided me throughout and have been extremely helpful in getting my complex tax matters sorted on time and in a professional manner. Great work guys.
Mukesh S
Mukesh S
29 September 2021
I was apprehensive to take the plunge into refinancing my loans. However Dayan and his team were very patient and made it a point to respond to all my queries and doubts . They must be leading busy lives themselves, however they were flexible and accommodative of my requests for meetings at close of business hours. Further I noticed that they are particular in their and the customer's paperwork. Along with Dayan, I'd like to call out the efforts put in by Ishara for ensuring a smooth transition. She has ben patient with my many queries and diligent in her handling of the paperwork. Thank you Dayan and team.