2018 HAS BEEN A DIFFICULT YEAR FOR SMALL BUSINESS. THE NEWS PREDICTS THERE IS MORE HARD WORK AHEAD

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It’s all over Social Media, Newspapers and the News that next year will present a hard year…. 

  • Interest rates are likely to rise

  • Banks will seek principal repayments to take effect on loans

  • Property valuations continue to decrease

  • Business trading conditions are tight and margins are difficult to maintain 

We are fortunate to work in the SME environment and are exposed to industry trends, business trends and Family Business structures / dealings.

 With all this exposure, what do we learn? 

  • Try and keep your business model simple!

  • Cashflow needs to constantly turn – invoice / collect!

  • Smaller / quicker processes / product or service for your customer base.

  • Remember what was the path to success for your enterprise?  A particular product or service?  That is the basis of your brand over your history of being in business.

  • Growth and expansion, a difficult strategy in today’s environment – cash requirements / investment. 

  • Business is always based on your ROI - Return on Investment.  What is the best you can profit for requisite effort / capital investment?  This needs to be your focus and motivation. 

  • Is each employee providing the requisite output for their role and salary package - Family or arm’s length employees?

  • Business growth and profit targets take time – you need to work towards small but strong foundations year on year.  Strategy & thought process needs to be long term.

 If you’d like to chat more about this, please contact our office.