Let’s be honest, End of Fiscal Year is basically the opposite of Christmas. For one thing, you’re actually really happy it only comes once a year. And as far as financial reckoning and tax filing goes, you actually have to prove whether you’ve been naughty or nice, without even a single helping of figgy pudding to cope with the stress.
But it’s not all paperwork and tax codes. EOFY is also your business’s New Year’s Eve, a time when you can reflect on the past year and make resolutions for improvement. Because of this, we thought it might be better to go a different route with our EOFY Checklist. We’ll skip all the legal and administrative work that goes into closing your books for the year and focus instead on setting yourself up for success in the future.
Consider this checklist your New Year’s resolutions.
1. Get your financials in order.
Just because we’re skipping the financial stuff for this post doesn’t mean you can. Seriously, settle up with the ATO, and close your books up right. Our friends over at MYOB have put together a comprehensive checklist for small businesses. If you’ve got a got a full featured Point of Sale, then you’ve got ready access to all the data you’ll need. If it’s already integrated with your accounting software, you’re way ahead of the game.
But that data’s good for more than just staying on top of your accounting. You can use the information you get out of your Point of Sale to tackle several of the items on this list. See all our Add-Ons.
2. Create a new budget.
Once you’ve gotten your financials in order, you can look more closely at how much you’re spending for overhead and try to identify room for improvement.
Look at labour costs vs. revenue for your shifts and see where you might be over- or understaffing. Look at your average costs for food from your vendors, and see if new terms can’t be negotiated (or shopped around). Check the performance of your marketing efforts over the last year—can you quantify the success or failure of your campaigns?
With the previous year’s data at your fingertips, creating your budget for this year doesn’t have to a guessing game. You can accurately forecast your expenses—set a monthly budget for each spending bucket.
3. Update your menu.
We’re not talking about adding new dishes to change things up. The end of the year is a good time to look more deeply into each menu item’s performance. What sold? What didn’t? Which items make you the most profit? Is your pricing in line with your current costs?
By analysing your menu in this way, you can update it—if necessary—with any appropriate changes. You might need to raise prices on some things. You might need to remove others from the menu. The goal is to reconcile the vision of your menu with the realities of your costs and sales.
Check out our menu psychology guide for some tips on how to optimise your pricing and design to guide customer buying behaviour.
4. Add new dishes to change things up
OK, now we’re talking about this. It’s always a good idea to offer new creations, to prevent your menu from becoming stale. Even if it’s a metaphorical stale, that’s not a word you want to be associated with your food.
Again, your Point of Sale data can help deciding what to add. Look at what your biggest selling items are, and create variations on the theme. If you own a sandwich shop, and the one panini option you have is a huge seller—well, then it’s time to add another panini option.
Look over sales reports and check to see if there were any specials you created that repeatedly sold out. Identify ingredients in popular dishes and see if that inspires you.
5. Get to know your customers better.
Using data out of the CRM module in your Point of Sale, you can run reports on your customers to identify any noticeable trends. Maybe some people only show up in the morning, while others are strictly evening-time customers. Perhaps there’s a very noticeable group of people always buying vegetarian options.
By keeping an eye out for obvious trends, you can start to create marketing segments based on these kinds of criteria: Vegetarians, Burger Lovers, Dinner Eaters, Coffee Drinkers, anything. Once you’ve identified these groups of people, it becomes incredibly easy to create targeted newsletters (with included offers) for them.
The deeper you dive into this data, the more targeted and personal you can make your marketing.
6. Review your workflow; automate where possible.
You can use your sales data to understand the turnover rate in your dining room, which will hopefully match what you’ve forecast in your business plan. This can be an especially eye-opening exercise for places that are filled each day but struggling to stay profitable.
Perhaps people are lingering too long, or maybe your staff isn’t turning the tables as quick as you’d like.
In this case, take a close look at the way your kitchen and restaurant’s workflow are set up. If you’re still operating manually, look into ways that your Point of Sale can automate certain tasks to increase efficiency.
If you offer takeaway or delivery service, investigate how that revenue stream is performing (and if maybe it’s getting in the way of back-of-house efficiency). Using a mobile ordering system can streamline the process of order taking.
7. Assess your staff’s performance.
Using Time & Attendance or your payroll reporting, you can do quick checks to see that everyone on staff is clocking in and out when they’re supposed to, not taking too many breaks, etc. If someone’s taking liberties, this basic reporting will uncover that easily.
But you can also use your Point of Sale’s reporting to see just how well each of your front-of-house employees is performing. Who’s the top upseller? Who’s getting the biggest tips? Who’s turning over tables the fastest?
Find your best performers, and give them a pat on the back, at the very least. But also use this information to find the employees who could use a little extra help in being successful at their jobs. Retrain them on your existing procedures, or make sure they understand the new ones (see item #6).