The best predictions for 2013 will come from what we know.  You know your business well and you can use this to spot opportunities, to make adjustments quickly, and then decide where to focus for the rest of this year.

My choice for the top five general business trends are these:

1. Small Business must be Productive and Competitive

Big retailers mostly compete on Price Strategy, and succeed because they screw their suppliers for lower costs and pass (some) of this on to the customers.  For SME's though, the key focus is on growth and customer relationships.

                        Costs need to be regularly reviewed, as savings go straight to profit

                        Capacity can be improved by better efficiency, so remove bottlenecks and waste

Flow-chart key processes such as goods ordering, account paying, taking an order or sale, and manufacturing (each can easily be done on a sheet of paper) and eliminate steps that have a negative impact on product or services delivery.

2. Innovation will continue to Deliver Solutions

New businesses typically start with the premise of solving a problem in a new and innovating way.  So, keep tuning and refining what you do and how it is done, know why the customer buys from you, (especially the problem you solve or the pain you overcome), and innovate to address those issues and be the preferred supplier of solutions for those problems.

3. Collaboration brings fast Results

Innovation happens quickly from collaboration, that is, sharing ideas with your team, customers, suppliers and others in your network.  This leads to important feedback on what works and how well it does.  Why will others collaborate with you?  If they are engaged by your vision and you address their vested interest in participating and benefiting we know from Psychology that "Belonging" is one of the strongest motivators (to a group, even Facebook, being part of a success story, like MacDonalds).

4. Technology is a critical enabler for SME's

The smart use of technology will be a key to business success, and assist to spot trends occurring.  Around 20% of retail sales are likely to occur online this year, and customers will check prices on their smartphones before buying.  Developments in accounting and financial management software and access to online marketing and sales tools allows prompt decisions to be made and positive action taken.

And, don't put up with a tired website; it must not only have content but also bring in customers and sales.  If you'd like some examples, call us.

5. Cash is still King

Cash is critical.  You have to know what your cashflow looks like and anticipate trends or issues.  If there is not going to be enough cash you need to have a funding plan ready.  We don't do 'cashflows' just for practice, it is one of the tools to plan and succeed, and our lenders see forecasting of profit and cash as necessary for approval of business or large equipment loans because it means you've thought about the factors and trends and so are less of a risk.

Our message is that we have been preparing for a long time, to help our clients.  It is not only tax that is important, but making profits, keeping more cash, and helping you get a sustainable competitive advantage.