Money
Issue No. 62 - December/January 2011
Strategies for uncertain times
by Joanna White
How can I ensure my business is well positioned for difficult trading conditions? That’s the question South Australian small to medium enterprises (SMEs) should ask themselves.
In the current economic environment, businesses should have a back-up plan “just in case”.
While South Australia is well positioned as a result of a strong mining sector, the State Government’s approval of the Olympic Dam expansion and our resilient business community, confidence is down and the volatile Australian dollar continues to impact on many SMEs.
It would be prudent for business operators to prepare themselves for the possibility of tough times ahead. Even if those tough times don’t eventuate, SMEs that have prepared themselves will benefit from the improvements they have made.
Strategies for uncertain times should include:
Speed up cashflow
One of the best ways to improve cashflow is to receive money that is owed to you more quickly. Take a look at your outstanding debtor days. Can you reduce these?
This can be as simple as offering a variety of collection methods including payments via Bpay, an EFTPOS terminal or online merchant facility. The more convenient it is for customers to pay you, the more quickly you will receive their funds.
Your banker can help you to identify more detailed options depending on the nature of your business and the industry you operate in.
Close cashflow gaps
Using invoice finance ca...
