Fast Movers 2011
Issue No. 62 - December/January 2011
Ten disciplines for financial success
Australia’s small and medium-sized growth enterprises face more stress in these challenging times. Business owners have to make difficult decisions constantly and demands come from every angle, all day long. Successful entrepreneurs know there are enduring key principles that improve a company’s prospects for growth and continuing profits.
“At Bibby Financial Services we are constantly interacting with entrepreneurs and fast moving companies. Fast movers are the growth engine of our economy, and this is a key reason why we continue to support the sector,” says State Manager SA, Greg Hardiman.
“Growth is expensive - part of our customers learning curve is that growth can hurt and, when too rapid, can result in severe cash-flow problems. Growth always means more money for buildings, transport, equipment, supplies, fuel, salaries and stock on hand. Often the stock is paid before the owners of the fast moving businesses are paid.
“For many customers growth is unforeseen growth and may initially be steady however gaining massive market share quickly that can cause disruptions to cash flow.
“We have observed time and again that staying calm in difficult situations and applying the following disciplines are key when a business is trying to get ahead of the competition.”
10 disciplines for success
1. Cash flow is the lifeblood of a business. Cash flow can be the first casualty in a downturn. In tight times fast movers develop conservative cash flow budgets and ensure they get paid more quickly. They are diligent in collecting what they’re owed. Effective accounts receivable collection frees up cash and can reduce reliance on credit.
“Staying on top of money matters can help to save your business. Have a good accountant and a good accounting program. Look carefully at where overspending is occurring and why,” Greg says. “Take action – this may mean reducing u...
