Over the time I have been doing these articles, I have focused on a number of different ways to improve different aspects of your business.

This month, listed below is a summary of the questions you need to ask yourself if you want to improve your business.

1. What are your top three strategies for growth, profitability and liquidity (cash flow)? Focusing on what is important will help you prioritise your time in your business. Don’t sweat the small stuff, concentrate on what is important.

2. Have you developed your annual profit budget and cash flow budget? If you haven’t, then the new financial year is coming up so you need to start thinking about preparing these budgets. Your accountant is a good starting point.

3. What are your plans for the business in the future? Where will you and your business be in three years time? What do you want out of your business? Do you need to start preparing for sale?

4. Have you implemented a post purchase reassurance strategy? That is, reinforcing all the positive aspects of your complex with the guest once they have checked in. Refer to last month’s Resort News article for the full details.

5. Have you calculated your return on labour and developed methods for capturing all your time?

For those of you in management rights, ensuring your time performing work in owners units is rightfully charged is vitally important in ensuring your profitability is maximised.

6. Have you reviewed your recruitment process? Having good people from cleaners to reception to administration is vital in ensuring your return on their labour is at its best. Take a look at your own performance and think about how it could be improved.

7. Have you implemented a risk plan for your business? Think of all the things that could go wrong and come up with a plan so you are ready when something doesn’t go according to plan.

8. Have you critically analysed the expenditure in your business? Are you really confident there are no savings to be had from your expenditure? Remember, every dollar you save in costs is multiplied when you come to sell the business.

9. Have you maximised your return on advertising? Tracking where your guests are coming from and working out what advertising is successful is paramount in ensuring your advertising dollars are being as productive as possible.

10. Have you got good systems in your business? Most of us are time poor so ensuring you are doing jobs the most efficient way using a good systematised process is the best way to ensure you are being as profitable as possible.

These ten points are all about working on your business not in it. So, put some time aside in your day so you can sit down and focus on these core points. The rewards will be worth the time.


Stephen Shirley
sps audit