Small business forms a significant part of the Australian economy. You may recall that one of the focuses of the 2016-17 Federal Budget included a raft of initiatives to simplify tax and compliance, encourage investment and increase the level of economic activity in our economy.
Australian small businesses employ over 3 million workers and added over $340 billion in 2013-14 to the Australian economy it is therefore crucial for all levels of government to support small businesses, however, ultimately the buck stops with you.
So what can you do to make your business more successful?
1. Review your business.
Taking the time to stop and analyse your current business and areas of improvement, could lead to new ideas, new revenue streams and a reduction in costs.
Reviewing market trends and other factors affecting your business will help you to innovate and be a step ahead of your competitors.
Business owners are enticed to buy in bulk and save, failing to recognise that excess stock will have additional costs, including the requirement for additional storage space, the increased likelihood of perishables, and in many cases, increases in the funding costs required to pay suppliers.
Implementing a policy of buying stock when needed will keep stock refreshed, reduce the need for storage space and improve cash flow.
3. Keep a close eye on your debtors.
It’s great making sales or providing a service on credit, but not chasing up money owed will lead to greater losses. Have a look at your outstanding debtors right now, did you realise that there was so much money outstanding? You should be looking at this weekly; if your customers think they can get away with not paying you, they will!
The information provided is general advice only. It has not taken into account your objectives, financial situation or need. If you would like to learn more or receive more tailored advice, uur business consulting team are experts in the small to medium enterprises (SMEs). If you would like to have a free consultation regarding your business needs, contact The Investment Collective today.