Business - Outsourced Finance

While worldwide economies are threatened with the possibility of coming to a grinding halt due to the COVID-19 epidemic, small businesses in South Africa face apprehension and uncertainty as they head into the unknown realm of the national shut down.

The question posed is “How will Small, Medium and Micro Enterprise (SMMEs) survive during self-isolation, mandatory work from home policies and the potential loss of suppliers/ buyers in the market?”

Thankfully these questions have been answered at a government level, with the implementation of safety nets for small businesses around the country ensuring that while the country avoids contagions businesses can survive the market slump.

UIF claim for temporary shut down

The department of labour has announced special regulations that will enable the Unemployment Insurance Fund (UIF) to offer relief to companies that find themselves in distress due to the COVID-19 outbreak. If a company is forced to shut down for a limited period due to precautionary health measures in response to COVID-19,  the UIF benefit will apply. This benefit is to prevent layoffs and ensure that employees still receive payments to ensure their livelihoods.

The department of labour has extended benefits for cases where employees have needed to practice self-quarantine for two weeks or longer as a result of exposure to the virus. The time taken off work due to isolation will be recognised by the department as special leave – provided that this leave meets government health guidelines, employees will then receive paid UIF benefits. The department of labour has issued these reprieves for small businesses’ to ensure their survival once the pandemic is over, as well as to reduce layoffs and curb potentially high unemployment rates that will be caused by the COVID-19 pandemic. Other measures will be taken by the South African government to ensure that small businesses survive the market slump caused by the national shut down, to prevent further pressure on the economy once the shutdown is over.

Government SMME support

Small business development minister Khumbudzo Ntshavheni has announced that the South African government will service the debt of small businesses during the COVID-19 pandemic national shutdown. This is a response by the government to the inevitable slowdown of the economy due to suppressed productivity during this period. In an attempt to curb any further adverse effects caused by the national shutdown, the government is giving a lifeline to small businesses that can’t afford the loss of customers and suppliers. The Debt Relief Fund has been created to provide relief on existing debts and repayments, to assist SMMEs during this period. However, there are requirements needed before aid can be given, including the demonstration of a direct link to the impact or potential impact the COVID-19 pandemic had on business operations.

The small business department has also announced relief for small businesses and in some cases, the likes of hawkers and the self-employed, making available a range of funds and mechanisms for survival. Some small businesses will be permitted to receive loans at prime less 5%, which currently means an interest rate of 3.75% per year. However, those that try to miniplate and take advantage of the crisis will be punished with interest rates of prime plus 10 percentage points, meaning chancers caught out will pay 18.75% in interest. The requirements needed for support from the various funds include:

• The businesses must be 100% South African owned
• At least 70% of employees must be South Africans
• Recipients must be tax compliant and registered with the South African Tax Revenue Services (SARS)

The government is not the only organisation that has come to the aid of SMMEs with many banks looking at the role they will play in ensuring the prosperity of the South African economy.

Bank relief for SMMEs 

Along with the government, many other organisations are stepping up to the plate to ensure the survival of SMME’s. Standard Bank has announced the Coronavirus Business Interruption Payment Scheme, which will provide payment relief to SMME’S for 90 days – launching on the 1st of April. To be eligible for this payment relief the following requirements apply:

• Your business is South African based, with a turnover of no more than R 20 million per year
• Your Business Current account, Bizlaunch account, and Business Lending accounts are paid up to date
• Your business is in good standing

The Reserve Bank has also guaranteed help by slashing rates by 100 basis points for the first time in a decade, announcing additional liquidity measures to ease the pressure on the system. First National Bank also jumped on the bandwagon and announced that the company is working with the Reserve Bank and Banking Association SA to find solutions to support consumers and businesses. These banks have recognised the impact the shutdown will have on businesses and the economy as a whole – supporting those that are beating the odds by continuing operations via digital means.

Adapt to digital 

As mandatory work from home policies are implemented, having a digital presence has never been more relevant. The time to adapt to digital is now and each business must take the necessary measures to ensure that operations continue despite the national shut down. The following tips can be followed to ensure that your company can work remotely through the digital realm:

• Get everyone behind the change – the first step is to ensure that each person in your team is embracing the necessary changes
• Identify how your business can operate digitally – have a good understanding of how your business is going to operate digitally, whether that means a new website or an overhaul of internal structure to support remote communication.
• Invest in cloud computing services – by moving to cloud-based solutions, huge savings can be achieved in terms of management and space. Google Drive, Microsoft Box, Dropbox are easy to use and setup takes just a few minutes; you can have your business fully backed up and accessible anywhere in the world.
• Put more into digital marketing – ensure that you have an online presence, make sure that customers will be able to find your services o Digital assets such as a relevant website and social media presence are vital.

Adapting to digital can be tricky, thus a business must train its employees to use the necessary platforms adequately before making the shift. Many online platforms can also support conversation between your employees such as Skype, Zoom and Google Hangouts – to ensure the effective flow of information in the organisation.

Working as a collective is key to maintaining a healthy economy once the dust settles, this includes governments, corporations, small businesses and individuals alike. Whilst panic incurs worldwide due to the pandemic, businesses should play their part in sticking together to mitigate the negative effects that will arise from the COVID-19 outbreak. It’s time for adaptation to ensure survival.

Small Businesses are the beating heart of South Africa’s economy – with estimations that over 90% of registered businesses in the country fall under this category. These corporations are the lifeline for new job creation in a country rife with unemployment, generating meaningful jobs and fostering the economy – keeping the money close to home while supporting local neighbourhoods and communities.

Due to the importance of business creation as a tool for economic growth, the South African government has incentivised business creation by adding a new corporate classification – Small Business Corporations (SBC).  The pertinent questions that must be asked are “what qualifies a business to be an SBC and how does one benefit and maintain this type of entity?”

What is an SBC?

Section 12E of the Income Tax Act, pertaining to SBC’s was created for the specific purpose of encouraging start-ups and job creation by presenting the opportunity for small businesses to benefit from reduced tax rates.

Entities have to meet the following conditions to qualify as a SBC:

• The business must be registered with the Company and Intellectual Property Commission (CIPC).
• The business must have a recorded turnover of less than R20 million per year
• All shareholders in the company must be natural persons.
• As the business owner, you should only own one entity (although there are certain exceptions, including owning shares in a listed company).
• Less than 20% of turnover should come from ‘investment’ income and the rendering of ‘personal’ service.

If all these conditions have been met, a business qualifies as an SBC, meeting the requirements to make massive income tax savings.

What are the tax benefits of registering as an SBC?

Companies in South Africa (including closed corporations) are generally required to pay a flat rate of 28% income tax. However, SBC’s are subject to reduced rates on income up to R550 000. To qualify for these more favourable tax rates (seen in the table below), a business must mark on their annual company tax return that they are an SBC.

Besides the reduction of tax rates, these entities can legally depreciate productive assets at an accelerated rate by capturing deprecation as an expense on income statements.  Manufacturing equipment can be deducted fully in the year of its purchase, other business assets can be amortised at a rate of 50% in their year of purchase, 30% in their second year and 20% in their third year. The key outcome of this taxation system is that it decreases taxable income while maintaining accounting profit, meaning lower amounts of payable tax relative to estimated profits of the company.

Maintaining your status as an SBC

This classification encourages business creation in South Africa by affording entrepreneurs the chance to watch their small business grow – without the burden of high income tax on initial profits. However, to ensure the maintenance of this classification business owners must keep a delicate balance of the SBC category requirements mentioned above.  SBCs were only created to lessen tax burdens on initial profits for smaller firms, once business growth has exceeded the taxable income required for SBC status, it will then be subjected to the standard flat-rate income tax.

The world of tax can be tricky to navigate for small business owners – which is why the South African government created the SBC classification, simplifying and reducing taxes for promising start-up ventures. Benjamin Franklin was correct in saying “nothing in life can be certain but death and taxes”, however, more favourable tax rates for smaller businesses’ can always be considered a bonus in the South African business landscape.

As a business owner, the strategic importance of building and retaining a competent and reliable work-force can never be overemphasized. Your employees are an extension of your entrepreneurial vision, and in fact, they are often the custodians of the company’s values and culture that you hold so dear.

Business Magnate, philanthropist and investor Sir Richard Branson once stated that “Clients don’t come first, employees come first. By putting the employee first, the customer effectively comes first by default.” We couldn’t agree with this anymore.

The simple fact is that investing in your employees is non-negotiable. Investing in your employees is investing in the future of your business.

Client satisfaction

Investing in your employees can have a direct impact on how your clients interact with your company.

Investing in your employees and empowering them with the skills required to do their job,  will result in an increase in your customer satisfaction. Employees who are confident and skilled at their jobs are likely to give your clients the appropriate level of care and attention. In this competitive business landscape, superior customer experience may be the catalyst to turning potential customers into loyal clients.

Reduce employee turnover

Your employees are the most important asset of your company. As an entrepreneur employee turnover doesn’t just eat into your time, but also ultimately into your bottom line.

The opportunity cost of going through the recruitment process and onboarding a new hire is considerably higher than putting measures in place to retain the current talent.

Much like anyone else, talented employees have a thirst for growth, both from a professional and personal view.  Investing in your employees is an easy means to ensure that they are fulfilled and see a future for themselves in your business.

Improve team morale

Investing in your employees is also a great way to improve the team’s overall outlook on their roles and ultimately, your company. Encouraging employees to gain industry certifications, further their studies or even partake in professional workshops can have a positive impact on their general approach to their jobs. When employees know that their company has an interest in their professional development, they are more likely to start feeling loyal to the company.

Attract top talent

The people you choose to hire are ultimately what will either make or break your business.

When your business is known to invest in its employees, you attract and keep the best candidates, and also build a strong work culture that is unafraid of hard-work, innovation, and change.

Investing in your employees is not only great for them, it’s also beneficial for your company at large.

You don’t necessarily have to spend lavishly to achieve this  – we’ve compiled a list of free sites that your employees can access to start upskilling themselves.

Here are the Top 10 Sites for Free Online Education:

1. Udemy
2. Codecademy
3. edX
4. Coursera
5. iTunesU Free Courses
6. MIT OpenCourseWare
7. Stanford Online
8. Khan Academy
9. Open Culture Online Courses

Small, medium and micro enterprises (SMMEs) are the lifeblood of any bustling economy.

SMMEs are often hailed as the key to achieving economic growth and are globally known to be the mechanism to generate new jobs. The Small Business Institute estimates that approximately 98% of all registered businesses in South Africa are SMMEs.

Despite President Ramaphosa’s assertion that ‘the growth of our economy will be sustained by small businesses’, a lot of entrepreneurs often feel left out of the economy and lament the lack of government support.

According to the Enterprise Observatory of South Africa, an average of 31 companies with taxable income of less than R10 million close down each week, and the number of employees hardly increases as SMMEs grow older. These statistics should be of great concern to a Government that purportedly wants to use SMMEs to drive the much required growth. Could it be that the Government says one thing and then does the opposite in practice?

State Capture

The level and extent of state capture continues to unravel, with each new report coming to light making it even more apparent how wide-spread the problem was/is. This is also compounded by the fact that the majority of the State Owned Enterprises (SOE’s)  that were involved in these activities are in bad shape, requiring massive bailouts from the public coffers.

The general focus of the reporting around state capture centres on the wasted resources, crumbling infrastructure and the resulting inability to deliver basic services. The one impact we hardly explore is how state capture has robbed the country of multiple opportunities to empower thousands of local SMMEs, building a capacity for continued economic growth.

Wasted opportunity

The Daily Maverick estimates that state capture cost the country roughly R1.5 trillion in the four years preceding 2019. These valuable contracts could have easily been used to stimulate the economy by making use of SMMEs. As opposed to large multinationals, SMMEs typically don’t work in isolation and rely on their networks to deliver their products or solutions. Empowering one SMME could easily result in many other SMMEs around them being introduced to the value chain.

Unfriendly Business Practices

For most entrepreneurs, doing business with the Government is a difficult and risky exercise as Cash Flow is critical to the survival of any SMME. We often hear with shock about how SMMEs have to wait for up to 90 days for payment to be processed after services have been rendered. This long turn-around time to process payment is just another example of the difficulties faced by entrepreneurs trying to conduct business with the state.

Impact on Innovation

The tendering process is often marred by tender irregularities, political interference, cronyism, and outright bribery. Beyond the obvious financial impact, corruption has a far wider reaching impact on the general business culture of the country. Once critical factors such as, professional competence, a solid track record, and the ability to deliver timeously are trumped by proximity to powerful individuals or groups, entrepreneurs start to become wary. The need to specialise, innovate and offer their unique solutions to the state is then gradually diminished. In an ideal setting, the state should be using SMMEs as a tool to innovate, however, many can argue that wide-scale corruption is a deterrent for honest, hard-working entrepreneurs.

If the Government is indeed serious about reaching its already low forecasted economic growth figures, they need to prioritise creating an environment where SMMEs can compete and take a more active participation in the economy.

For a business to be successful, keeping accounting and financial records in order is essential. Finance and accounting departments must work together to prepare for tax returns filings and be ready for audit as the calendar year is coming to an end.

Compliance

For tax and other compliance reasons, every entity is required to report its results annually. The South African Revenue Service (SARS) prescribed tax period for individuals usually ends on the last day of February. However, other corporations can select their financial year ends with some exceptions.

According to the Companies and Intellectual Property Commission (CIPC), the compliance checklist is applicable to all companies including, private companies, non- profit companies, public companies, and personal liability companies. Before submitting their yearly returns, companies must complete the compliance checklist.

To ensure a smooth transition into a new fiscal year and to avoid missing any crucial steps, the following are some essential year-end tax, finance and compliance checklist.

1. Reconciling All Balance Sheet Accounts

You must go through all your business credit and bank accounts and do reconciliation for all the payments and charges made. You must ensure that the statements match with your business records and any discrepancies that occur must be investigated.

2. Documenting Accounting Transactions

Another crucial step is to document all the accounting system entries and make year-end changes to account for revenue and expenditure in terms of accruals and deferrals.

3. Reviewing Income Statements Accounts

It is also important to review expense accounts to establish whether there are misclassifications to prepaid expenses, fixed assets or other accounts in the balance sheet. In addition, looking for expenses that might have been charged to the wrong expense account is important because it helps in reclassifying the expenses where necessary.

4. Creating an Annual Budget

By evaluating the interim financial statements of the current year, you can start to plan an annual budget. This will give you an understanding of the current year expenditures, which drive the budget and financial forecast for the coming year.

5. Payroll and Vendor Tax Forms

Any non-standard income on employees like taxable reimbursements on education, life insurance or other forms of taxable income that is not processed through the payroll cycle must be included. It is mandatory to submit tax returns to SARs on the given date.

Entrepreneurs whose income is generated from sources than wages such as investments, or trade are needed to give in two provisional tax returns. Additionally, they must ensure payments of two provisional tax are made where applicable in the course of the tax year.

6. Becoming Audit Ready

You must make sure that your financials are generally accepted accounting principles (GAAP) compliant. This is because when it comes to selling a business or seeking funding, investors require financials that are accurate. As such, working to be compliant means you are audit ready.

7. Reviewing Internal Controls

You should also review your internal controls and processes to ensure they work effectively.  Correct the loopholes that may allow high errors or fraud in the process.

Outsourced Finance have qualified accountant that can assist you with your year-end compliance process

An accelerator is a short training program for entrepreneurs jump-starting new businesses. In exchange for a small percentage of equity, the accelerator program offers office space, some capital, and mentorship. On the question of whether an accelerator is good for your business depends on you as a business owner, type of business and what you want to achieve out of the experience.

Some accelerator programs will focus on specific sectors of business such as healthcare, education, or finance. Others will be more general, tackling almost everything business. While some accelerator programs are difficult to get into than others, the most common programs involve a lot of applications that make it more difficult for startup businesses to get noticed. Before you get into an accelerator program, it is important to understand its pros.

1. Injection to Capital Investment

Many accelerator programs offer an injection of funds to help grow your business. In addition, some accelerators can also provide interest-free or low-interest loans to finance your business.

2. Networking opportunities

Accelerating programs usually will contain few other businesses, which can offer you a great opportunity to build a network of professionals. You can establish strategic partners who are building a foundation for their early businesses.

3. Product Development

Some accelerator programs can provide your business with services such as product testing, market research, financial planning, legal advice, marketing strategies as well as growth for the product. You can identify the best positioning for your products or services.

4. Mentorship Opportunities

Mentorship is one of the vital elements that attract many businesses to accelerator programs. Most programs provide one to one mentorship sessions and ongoing support from successful entrepreneurs and experts in your industry.

What about the cons of accelerator programs? What are the negative effects of these programs that you need to be aware of?

1. Business Equity

The amount of equity shares that accelerators need will vary from program to program. Depending on the type of accelerator program you can pay up to 10% of your company equity for a program that will only last for 6 months.

2. Risks and Commitment

Although joining an accelerator program means you must be committed, it does not guarantee your business success. For many entrepreneurs, it means leaving their family behind for some months by relocating to a different city.

The main goal of an accelerator program is to accelerate the growth of our business. However, there are still man entrepreneurs that leave the program or fail to complete building a product or service that will meet market demand.

Bottom Line

No two accelerators are the same, which makes it difficult to measure the amount of benefit you can receive from participating. Some accelerator programs have a clause in place with the right to buy your business after a certain period. For some entrepreneurs, this can be an excellent welcome strategy. On the other hand, some entrepreneurs may not like the idea.

When deciding whether to use an accelerator programs for your business, it is crucial to ensure that you understand their terms and conditions fully. This is the only way you can be sure you are giving your business the best chance to thrive.

At Outsourced Finance we are proud to work with I’M IN ENTREPRENEURSHIP PROGRAMME and SAICA ED, that furthers the growth of Entrepreneurs in South Africa.

While Small, Medium, and Micro Enterprise (SMME) play an important role in the creation of jobs in South Africa, it also enables diversification through the creation of new markets and sectors that are crucial drivers in economic growth and development.  The SMME sector provides under-tapped market opportunities that can provide more economic growth

1. Technological Advancement

Due to changes in technological opportunities through digital trends, the current ways of performing business in South Africa are challenged. SMMEs are now well-paced to leverage these technological advancements to innovate for lack of skills challenge. This provides a great opportunity for SMME management teams that cannot afford full-time professionals in the current economic state to connect with people whose skills are not fully utilized.

Technology has also allowed SMMEs to gain access to the market. Instead of going after the government and large companies’ clients, SMMEs can be each other’s clients and service providers.

2. ICT Sector

The Information, Communication, and Technology (ICT) sector provides another opportunity for SMMEs. Despite the slow growth in the economy, the expansion of bandwidth and fiber application is performing well. This sector provides a range of opportunities such as Wi-Fi masts, data fiber cables implementation and provision of services like technical support.

3. Industrial and Commercial Property

Due to the tough economic climate, many people are migrating to the cities that provide business opportunities in the country. This creates an opportunity for SMMEs to become creative to provide for the emerging needs that the urban population requires. A wide range of ideas can be implemented in the industrial and commercial property space depending on the needs of the customers.

4. Agriculture

The export of a wide range of vegetables, fruits, and exotic meat industry has been increasing substantially. This is a product of the agricultural sector taking advantage of the climatic regions. The most important opportunities in the agricultural industry are majorly in the underdeveloped and rural areas that demand resources like storage, better irrigation schemes, transport, and power generation.

5. Infrastructure

Although there is a dire need for investing in infrastructure in South Africa, the major opportunities lie in electricity, rail, water, and roads. Specifically, in the upgrade and construction projects, which are gaining popularity tremendously. These forms of infrastructure offer a great opportunity for SMMEs in terms of subcontracting agreements or public-private partnerships (PPA) participants.

6. Tourism Industry

The tourism sector in South Africa provide a lucrative business idea for SMMEs. The country registers up to 8 million tourists visiting the country every year, create a complete and ready market of SMMEs. Although the industry is faced with challenges such as strict regulations of visas for children who enter the country, the government has revised this restrictive visa regulation. This has boosted the number of tourists visiting the country.

7. Manufacturing

The demand for manufacturing capacity in South Africa has been increasing over time. Initiatives like SA Automotive Masterplan and Black industrialist Programme have provided the creation of jobs and business opportunities. Therefore, the manufacturing sphere can provide robust opportunities for SMMEs through partnerships with large corporations and outsourcing contracts

Although there are many opportunities available for SMMEs, the more profitable areas in the current economic climate include technological advancements, ICT sector, industrial and commercial property, and agriculture. More opportunities are also found in the tourism industry, manufacturing, and infrastructure.

Outsourced Finance is an advocate for SMME, we assist our client to better navigate this tough economic times.

One of the biggest challenges that your business can face is getting customers. Customers are the number one reason why your business will survive and grow. It is unlikely for people to walk into your office asking for what kind of products or services you are offering unless they know you and what you do.

Ultimately, your prospective customers need to know why they should choose your product or service. They also need to know how it can benefit and offer solutions to their problems, and how it is differentiated from your competitors. To communicate this information, your SME may need to hire a marketing agency next year. The purpose of a marketing plan is to generate leads that can lead to sales conversion.

Why You Should Hire A Marketing Agency Next Year

Expertise

As an SME, you may not have your own marketing department or the qualifications to market your own business. Therefore, you may require the depth of expertise and experience that a marketing agency can provide. Marketing agencies usually have access to media buyers, filmmakers, researchers, Search Engine Optimization (SEO) professionals and other experts who have advertising knowledge that your business may lack.

Saving Money

Although working with a marketing agency may seem expensive, an agency can save you a lot of money on the placement of ads. Most of the marketing agencies receive discounts from TV, radio stations, and publishers to advertise on cheaper rates than if you decide to deal directly. A marketing agency can also come up with new different ideas to redesign ads and be more efficient while saving your business money and space.

Saving Time

Hiring a marketing agency can save your business valuable time. While you or your team may need time to rump up, a marketing agency executes a marketing plan immediately. This gives you time to run your business and focus on other aspects of your business that require your attention.

Brand Development

Developing a brand can be a complex task even for businesses with experience. Marketing agencies can help your business with this process by developing logos and advertising ideas that can develop brand awareness. They are also effective in providing you with research that allows you to target your prospect market.

Keeping Up with Up to Date Marketing Trends

The most essential function of marketing agencies is the duty to be aware of all changes that occur in the market. They have personnel who attend meetings, conferences and study the market to know all the changes. Therefore, marketing agencies have access to the latest technology, changes in marketing, SEO and social media that your in-house marketer may not have access to.

Easier to Scale

The only way you can raise the output of your in-house marketing team is to employ more workers. However, if you hire a marketing agency, they already have a team that you can call upon at a moment’s notice if you need to work with a bigger strategy. They also have the experience to help your business scale faster.

In recent years, more effort has been placed from both private and public sectors to create an environment where entrepreneurs can start their businesses and grow. However, many SMEs are faced with common challenges that inhibit the growth of these businesses. More than 50% of SMEs in South Africa fail within the first 5 years. If you are a business owner or are looking to start a business, here are the three major challenges you are going to face and how you can deal with them.

1. Access to Funds

Small business owners in South Africa often lack enough to fund their businesses and do not have a strong credit history. Due to cycles of income inequality and social injustices brought about by South Africa’s history, these issues worsen. In addition, there is a mix of conservative cultures among most of the banks in South Africa. The banks and other lending institutions are resistant to lend SMEs or startup businesses because it is perceived as a risky investment.

Solution:

SMEs need to have documents to show their projected value using the accepted methods and understand their real financing needs. As young entrepreneurs, you need to seek guidance from those who established in your area of business. This can help you create a viable business plan that presents crucial information to the funding institutions.

2. Access to Business Networks

Another major challenge that you are going to face as a small business owner is accessing the right business networks. Entrepreneurs who are established will tell you that to succeed, you need valuable business networks and relationships. As such, you are unable to access things like funding, mentorship, markets, and other benefits of having a network with leaders in the industry.

Solution:

Start building a network with your local business community and fellow SME owners. In time, these relationships grow if there is regular communication and assisting each other. This is a starting point to build successful relationships that will last throughout your business career.

3. Human Resource Challenge

It is difficult to find and afford employees who are skilled especially in fields like sales, accounting, and finance. Due to changes in the market, your small business may not be able to keep workers around.

Solution:

There is a lot of talented and qualified personnel who prefer to work for less bureaucratic organizations. They look for jobs with policies that are flexible and room for growth. You can hire such workers, who together you can thrive and accomplish growth in your business. You need to highlight some of these benefits to attract qualified prospects in your business.

Concluding Remarks

While it is not easy to run a small or medium business, whenever faced with a challenge you need to have a problem-solving attitude as an entrepreneur. You should look for ways and solutions to address the problems facing your business head-on and focus on creating opportunities for growth.

Although every entrepreneur sets their business goals, not many achieve them because they make a list of goals for the year and leave it that way. For you to achieve your business goals, breaking them down into actionable items over a shorter time period is advisable. If you implement the goals weekly, monthly, or quarterly, you have much more scope and control over the actions you take in relation to the overall goal. This way, you have a higher chance of achieving the goal. The following is a guide on how you can set Q1 smarter business goals.

Step 1: Start with the Big picture

It is ill-advised to create your quarterly goals without visualizing them as part of a bigger picture. Ensure that goals for the first quarter are practical and possible to achieve along with the overall goals. You can do this by planning out the goals for the entire year.

Step 2: Create Quarterly Goals

Once you have the big picture for the year, you can break the long-term goals into four quarters. Set milestones for each quarter that will help you achieve the overall goals for the year.

Step 3: Plan for Monthly and Weekly Milestones

For each month in Q1, you can set weekly milestones. These weekly bits are not overwhelming and are achievable within a shorter period, which can keep your employees motivated.

Step 4: Focus on Collaboration and Communication

Holding regular meetings with your team essential and necessary to evaluate current goals and their progress. The benchmark meetings ensure that people are on track towards achieving their quarterly goals. This also provides enough time to correct the course when necessary.

Step 5: Stick to The List, But Make Room for Flexibility

At times, even the laid-out plans can go astray and require room for change. While it is possible to predict many factors that can affect your business, change is inevitable and it may change your goals as well. For this reason, flexibility is crucial if you want to achieve your quarterly goals.

Step 6: Review and Reassess

Before starting a new year, you should plan out your strategy session with our team. Take the plans from the previous quarters and review your accomplishments in terms of the primary goals. You should then re-assess milestones or any areas where you missed the target. This is a way to identify gaps, learning points or issues within the team.

The changes you make sets the stage for the new quarterly goals and the primary goals that you must develop for the next business year.

Bottom Line

Once you start with implementing quarterly goals, you will never go back to a yearly overview of the goals you want to accomplish. This is because goals that are set on a quarterly basis are met faster and it motivates you and your team. However, you should not set too many goals for one quarter. Instead, focus on accomplish 2 or 3 goals rather than stacking many only to set yourself up for failure.