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Australian small business has been hit hard this year, there’s no doubting that.
It’s been a flow on effect from challenges in supply chains, consumer behaviour modifications and less in-person and foot traffic in brick and mortar retail shops due to social distancing.
Yet amongst all this, there have been triumphs in how many small businesses have adapted and pivoted amidst all the challenges. For many small businesses, the future is bright.
Read more from small business accounting professionals at Crest Accountants to find out the top 4 insider tips to get your year started in 2021.
Resilience is a necessary ingredient in the recipe of success
“Volatility is the new normal for small businesses, with a long recovery ahead,” according to chief customer experience officer for Business Australia, Richard Spencer.
It all boils down to resilience, a necessary ingredient in the recipe of success for all small businesses. And we all know how resilient small business owners are!
We’ve prepared some industry insider tips for preparing for 2021 as a small business.
Tip 1: Contact your bank early and shop around for the best product
Take some time researching to find the best financial product to suit your cash flow requirements.
Your bank is better able to help you, if you keep them informed and give adequate notice to answer your questions, help you with any changes, or advise them of any problems or potential concerns.
Greg Pink, general manager of business and corporate banking for Bank of Queensland says:
“Frank and transparent banker and customer conversations have become far more enriched this year as lenders look for ways to help customers.”
Ensure that your financials are a true representation of what’s happening in your business. This is easily achievable with the help of your Gold Coast small business accountant.
Tip 2: Understand your clients and lock payments in
Continue and further communication with your clients and customers, particularly your top tier ones.
- What do they need at this time and into the future?
- How can you pivot your business towards new markets?
- What opportunities exist for your small business and how can you seize them?
Also, don’t be afraid to ask to lock clients in, so to speak. Contracts and service agreements are a peace of mind strategy that secures your cash flow, guaranteeing income on a regular basis.
This provides financial security and a certain degree of leverage with financial institutions, should you need a loan at some stage, according to business analyst John Hagerty.
Tip 3: Accept volatility and don’t postpone hard decisions
It’s highly likely that economic volatility will continue well into 2021 – so, what should you do?
- Be proactive in business – don’t wait around for things to go back to normal.
- Hone in on the areas that are most profitable, and
- Don’t postpone the hard decisions.
These hard decisions may be laying off staff, accepting you need government assistance and/or pivoting your business strategy.
Make those tough calls early on – your business will thank you for it later.
Tip 4: Seek assistance from your Gold Coast Accountant
As always, seeking help is never a bad thing and this is still true in small business.
Your team of accountants and finance professionals at Crest Accountants on the Gold Coast, are here to advise, assist and prepare your small business financials in 2021 and beyond.
Contact Crest Accountants today to reach and exceed your small business accounting requirements.
