The impact of the GFC on our business environment is well documented over the past 18 months. It is tougher now to raise new equity and gain support from your bank. In short the number of business failures continues to rise in 2010 according to the latest Australian Bureau of Statistics reporting. The SME business owner is looking at new ways to maintain sales, operating efficiency and sustainable profitability. We have been analysing these trends for our customers.The outlook requires the SME business owner to explore all available opportunities to improve performance and avoid becoming another statistic.
We have identified a number of warning signs for business owners that may be hanging on hoping for an improvement in the economic cycle in 2011. These include:
1. Poor outlook for forward orders
2. Blow out in debtor days outstanding
3. Short term losses from trading
4. Limited ability to cut costs
5. Poor cash flow
6. Lack of Bank support for additional facilities
7. Creditors insisting on COD or limited open credit
8. Tax office pressing for overdue taxes
We have identified several trends with top performing SMEs looking at more cost effective technologies to support their business productivity and also looking at suitable outsourcing solutions as a way of further enhancing profitability. We have been compiling a set of business initiatives for SMEs that are critical for clients to think about in making plans for the next year.
If you would like to discuss the opportunities available to grow your business please do not hesitate to contact us.