What are the biggest threats to business growth?
Small business owners constantly face a myriad of threats to their growth. We’ve taken some of the biggest threats and put together some ideas on how to overcome them.
Calling in the experts when it’s too late
Many business owners call in the help of their advisors such as bookkeeper or accountant when they are in trouble and it is often already too late. Trying to fix a problem such as running out of cash or getting a big tax bill is a lot harder than preventing it from occurring in the first place. Instead, maintain an open dialogue with your trusted advisory team, have systems in place to help you manager your business, and get advice as soon as alarm bells start to ring.
Getting a large tax bill isn’t necessarily a bad thing: it’s generally a sign that business is doing well. However, it’s important to ensure you put aside enough cash to cover these expenses. You should be able to work out what you need to cover regular expenses such as GST, payroll tax, etc., but your bookkeeper can always help as well.
Cash flow problems
If you have more money going out than coming into your business then you have a cash flow problem. .There are a number of ways you can improve your cash flow including increasing your profit margin, reducing costs or just making it easier for clients to pay. These tips may also help.
Problems with staff can range from not having enough to not having the right staff. Having high employee turnover is also potentially costly by the time you add up the cost of recruiting and training new staff. Some of the ways to overcome this include having a robust recruitment and onboarding process in place, ensuring your compensation packages are competitive and keeping staff engaged with flexible work arrangements and other perks.
There are any number of business costs that seem to be increasing almost daily. These can include compliance costs (so-called ‘red tape’), staff and other input costs and, increasingly, energy costs. While there’s not a lot you can do about ‘red tape’, by shopping around and even using comparison websites or an energy broker, you may be able get a better deal on your gas and electricity bills.
These are just some of the many challenges facing small business owners as they try to build their enterprise. If you’re looking for advice on how to overcome these hurdles and grow your business, let us know as we can help.