Some experts are predicting a property and economic upturn while others are predicting a downturn. Director of MBA Finance, Harry Pontikis says one thing is for sure – if you are a business owner, you don’t get the luxury of making new predictions when reality proves your predictions worthless.

“As a business owner, if you misjudge the economic climate the consequences could be terminal for your business,” Harry said.

“On the flip side, being able to take appropriate steps when you see the economic conditions changing may not only save your business but may also open up new opportunities.”

Here are some of Harry’s tips for how to start your financial year off right:

1.       Revisit your business plan

The number one recommendation, across the board, is to re-examine your business plan. Your
business plan should be the working base for your company.

2.       Seek supporters and advisers

Many companies set up advisory boards that include a wide spectrum of professional expertise that they can draw on for advice. Such board members often are attorneys, certified practicing accountants, civic club leaders, owners or managers of businesses similar to yours or whom you do business with, and retired executives.

3.       Make customer satisfaction your priority

Your customers are your lifeblood in any economic climate.  Spend time listening to your clients to hear what they like and do not like about the services you offer. Change those things that you can.
Find out if there are ways you can expand what you do for them, perhaps by offering more products or services or fulfilling other needs that they have.

4.       Advertise and sell

As part of the philosophy of expanding your base and recruiting more customers, you need to advertise and sell more than ever. People are looking for better ways to do business. If you have established strong customer satisfaction, this is the time to get the message out.  Word of mouth alone is not an effective marketing program as you don’t have much control over when they recommend you or to whom.

Diversification can give you more stability because a down market in one product may be compensated for by another product. The tricky part is finding complementary products that face differing market challenges.

5.       Diversify your customer base

You may have been selling to a limited subgroup and so you may be able to expand the appeal of your product to a wider audience. For instance, you may be primarily selling to a specific age, ethnic, or gender group and with different advertising or a slight modification in the product, you can reach a broader spectrum of the population. Simple things like instructions in another language or wording advertising slightly differently can have a major impact on who your business attracts.

6.       Find ways to save time and money

Chasing up outstanding payments are a great place to start in tightening your belt. Not only do you need to be providing incentives to your customers to pay on time or even early, but you need an efficient payment system that gives you advance warning of problems as they develop.

Keep in touch with your finance broker or bank, advising them of any company developments. If you face a tight situation, making your broker aware of the situation will allow them to suggest possible cash flow alternatives, restructures or other options to help you through those times. Waiting until your ‘back is against the wall’ usually leaves you with few, if any
options.

7.       Mobilise your people to save jobs

Economic downturns are scary times for employees. Many firms cut personnel and add to the workload of the remaining employees. Involve your employees in cost cutting and revenue generation. Let them know they are important to you and that you are committed to keeping them. If they know that they are perceived as an active part of the solution, they can identify sources of savings and income that never occurred to you.

For more information about how Harry and his team can help you prepare for the new financial year, contact Master Builders on (03) 9411 4555 or visit www.chocolatemoney.com.au.

Chocolate Money t/a Master Builders Financial Services. Australian Credit License 387277