Not sure how healthy your small business is? Take a look at some advice from the Herald Sun.
IS YOUR BUSINESS UP AND COMING?
A NEW business needs a proper financial, operational and legal structure to chart its early days, including market research and a monthly or weekly cash flow projection and budget.
IS IT GOING FROM STRENGTH TO STRENGTH?
GROWING businesses can sometimes fall victim to their own success. Cash flow from the business may not be able to fund its own growth, and the business may not have organised finance to cover the gap.
IS YOUR BUSINESS FALTERING?
A SUCCESSFUL business may be hiding the seeds of its destruction. Sales may be dropping but disguised as part of a broader economic slowdown, while the business’s once-healthy profit margins are being squeezed by new competition and rising costs. RSM Bird Cameron’s Andy Graham says this is the best time to review every revenue line and make tough decisions.
IS YOUR BUSINESS FAILING?
IF YOUR business cannot pay debts as and when they fall due, it is insolvent and needs professional help. Deep down, you probably already know it suppliers will be demanding cash before they hand over the goods or refuse to deal with your business. Your finance will be stretched to breaking point and your banking relationship may be more than strained.
Photo by Andres Rueda