Practical strategies for business owners
The hits just keep on coming… ongoing effects from COVID, the great resignation, inflation, wage rises and general business uncertainty.
But it’s not all bad news, in fact there’s lots you can do to help your business adapt. In this article we outline positive and proactive approaches for running your business in challenging times.
The most common concerns business owners are sharing with us include slow growth, rising inflation and difficulty finding employees. While much of the external business environment may be out of your control, our advice is to focus on improving the areas of your business that you can control. Here are THREE positive steps for business owners:
#1: Improve productivity and efficiencies
There are a multitude of strategies that can help to improve business productivity and efficiencies such as:
- Combat the issue of rising prices by exploring opportunities to bundle products and services or provide bulk purchase discounts for your customers
- Introduce easy pay or regular instalment payment schedules for customers which will help cashflow, theirs and yours
- Align your suppliers’ credit terms with expected customer payment terms can also improving your cashflow
- Review your product/price ratios and adjust accordingly
- Implement software and automation for manual tasks such as invoicing and payment reminders
- Improve inventory and stock management processes
- Forecast cashflow to better manage business expenses and customer demands
- Proactively tax plan to minimise your tax obligation
#2: Be on the lookout for opportunities
Periods of economic downturn or business uncertainty can also present unexpected business opportunities. Remain open-minded about the potential of operational change. Now could be the moment you consider new lease agreements and fit out, property acquisition for your business premises or even pursuing a partnership or merger opportunities that could achieve greater efficiencies.
#3: It’s all about relationships
Make the most of your relationships with your customers, employees and suppliers.
Now is not the time for radio silence, it’s a prime opportunity to let your customers know your true value and how your expertise, products or services help them achieve their goals. Stay connected with your customers through regular email communication, social media and keeping your website up to date.
Take the opportunity to look at the opportunities within your business. Build your employee’s skills through training and mentoring, review your business goals and strategy and articulate your business direction and roadmap for achieving business success with your team.
Good relationships underpin just about everything in business, especially the opportunity to negotiate terms with suppliers and landlords.
Concerns about cashflow and solvency?
If you are concerned about the effects of inflation and business uncertainty, and the continuing solvency of your business, please get in touch as soon as possible. There are options you can consider.
We can help you negotiate payment timings with suppliers, implement a cashflow management plan or connect you with professional support.
Our video interview with Solvency specialist Paul Burness outlines some practical strategies for business owners who are concerned about cashflow and solvency.
We’re here for you
We are single-minded in our goal to help our clients through guidance and advice, to help you make the most of business opportunities. If you are looking to the future and making the most of business opportunities in the current environment, we encourage you to make an appointment by calling 03 9708 8801 or emailing info@rvpartners.com.au
General Advice Disclaimer: The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
