The global financial crisis is squeezing credit and bank overdrafts and trade payments have been slowing. Therefore, small businesses should support themselves for an economic slowdown in the wake of chaos in international finance markets and a decrease in the value of the Australian dollar. They should be keeping a close watch on cash flow, considering the most appropriate finance options and improving administration processes. Here are some helpful tips to help your business survive and thrive in challenging market conditions!
1. Get Organised – Keep summaries of all purchase and sales invoices and petty cash dockets. Importantly, keep your bank statements safe as they are a record of your payments and receipts.
2. Always check the credit status of a new customer – Risks must not be underestimated in the eagerness of taking on new business. Credit checks can be done quickly and are relatively inexpensive.
3. Chase overdue accounts regularly – take prompt action to follow up overdue accounts by telephone and check customers whether they have received invoices.
4. Look for more flexible funding options – why not look into Debtor Finance or a line of credit.
5. Review your suppliers – review the prices of all your suppliers are charging you. Are you too loyal to your suppliers for the wrong reasons? Think of the effect of 10% reduction in cost on your profits!
6. Dusts off your business plan– try to reconstruct a winning business plan in 2012. Keep an electronic copy to make sure changes are easier to track.
7. Call in a business consultant – A dedicated financial consultant can help you plan effectively and take advantage of opportunities on the horizon. If you would like more information on Business Consulting contact James Solomons on (02) 98683900 or james@elitefinance.com.au.
James Solomons 