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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Moumita Ghosh
Moumita Ghosh
2020-11-18
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We've been meeting Dayan for years now and he is great with his advice and is very knowledgeable and pragmatic. We recently used his services to get the home loan for our house and he and his team went above and beyond to get us the best possible deal. Ishara in his team was super communicative and responsive in following through and made the process very easy for us. Highly recommend them!
Cara Neela
Cara Neela
2020-10-24
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Dayan and Hasi are wonderful, wouldn’t hesitate to recommend them! They went through all with a fine tooth comb to ensure all was correct. Thanks to you both and the Opulent team!
Jason Barry
Jason Barry
2020-09-29
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I was looking for a different accountant and was recommended to Opulent Accountants. I have been blown away with there service. I wish I moved accountant sooner. Platinum Plumbing Enterprises P/L
Afshin Koohestani
Afshin Koohestani
2020-09-10
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Uditha Illeperuma
Uditha Illeperuma
2020-09-08
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Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
Dinesh Fernando
Dinesh Fernando
2020-09-03
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Very happy with the service provided in getting my tax returns done. Mr. Dayan is very helpful and professional and has extensive knowledge in his field of expertise. Highly recommend if you are looking for a hassle free and prompt service.
Ronald Turner
Ronald Turner
2020-07-16
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Opulent were absolutely fantastic to deal with, they are competitively priced and incredibly proactive and friendly. For me I have been much better off using their fantastic services as opposed to doing tax returns myself. Sum was amazing, incredibly knowledgable and super friendlyI'll certainly be back with Opulent next year
Milinda Wickramasinghe
Milinda Wickramasinghe
2020-07-05
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Opulent team has been fantastic and it has been truly a pleasure dealing with the team for more than 10 years. Dayan and Ishara have gone above and beyond to assist and communicated with me even when I was overseas. Excellent service has being provided in a professional and timely manner. I would highly recommend the team.
Chami Ranaweera
Chami Ranaweera
2020-04-28
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I have been working with Dayan last 9 years. All of my loans, refinance and tax are done through Opulent.Dayan and his team including Ishara are very helpful and easy to deal.
Edmund Lobo
Edmund Lobo
2019-12-02
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We were new entrants to the cattle farming scene. All the rules and regulations surrounding primary production can be very confusing. The team at Opulent Accountants walked us through all the steps, set up the necessary ABNs and Company / Trust accounts, filed the related pending BAS and Tax returns, and is currently keeping us up-to-date with all ATO related transactions. We recommend them highly to all.