Fall Into Financial Goal Setting

Many businesses run on a fiscal year.

In the hospitality industry, even if your financial year is January to December, September offers a new beginning.

September is the beginning of school, the end of summer holidays and vacations. Owners and operators who travel themselves are often back at the desk and supervising properties again.

This new beginning offers you a chance to assess your business and set goals to improve.

Examine Your Financial Statements:

Your financial statements aren’t just a document for your accountant; they are a critical tool for you. Take a look at your financial statements and ask yourself the following questions:

• How profitable was my business this year?
• Are my revenues steady, increasing or decreasing?
• What has led to changes in revenue this year?
• Were there any expenses this year that were higher than normal? Why?
• Were my net profits the same, more or less than last year? Why?

Set Goals Based Upon Your Financial Statements:

Once you clearly understand your profit and loss reports, you can set clear goals. If you are going to increase revenue, what steps will you take? Will you work on increasing customers or occupancy, increasing rates, increasing menu prices, or sourcing new streams?

If you are trying to tackle expenses, determine which expenses are not fixed and then create a plan to lower them. Are you taking advantage of energy credits? Are your television and internet services economical, based upon how your customers and your staff utilize these services? What amenities on site are being utilized and which are idle?

Consider if your debt service is appropriate or if this is the time to refinance debt. GRP Capital is happy to assist you in assessing your debt load and determining if there are other ways to reduce the cost of your debt and increase profitability.

Think Big! 

September is a good time to consider taking appropriate risks.

• Is this the time to invest in a new property?
• Is this the time to upgrade properties you already have in order to attract more customers, obtain more revenue or garner better reviews?
• Is this the time to restructure debt?
• What experiments can you try to increase revenue, whether it’s a new marketing initiative or a new way to attract hotel guests?

Take advantage of this new beginning to examine the operation of your business, assess its health and weaknesses and set goals to improve in the future.