I had a couple of calls regarding my Blog earlier this week, asking 'but what is likely to occur this year?'  If you can anticipate some of what is likely to occur then you can be better prepared.  Here's my list:

1. Cash Crunch in February

This is usually a tough month, Christmas bills due, start up after a few weeks break, and the next BAS payment due including PAYG Withholding on holiday pays.  Cash will be tight so collect accounts early and see the bank well before you need the money.  We do Forecasts for Profits and Cash for 12 months with various scenarios, to see where the crisis points are.

2. Businesses going Bust will Increase

Insolvencies are still growing, banks are slow to lend.  Watch for warning signs and monitor account customers who seem to be in distress.  (We have 'plans' to assist businesses who are in difficulty.)

3. Tax Office getting Tougher

Labor has put pressure on the ATO to collect more tax, which will mean aggressive collection and more tax audits.  Make sure your tax position is sound and you have the supporting records if called for, like sales contracts, vehicle log books, supplier invoices for GST claims, diaries if travelling overseas, Minutes for decisions, SMSF records, and good systems/books.  (Which is why we nag about these things.)

4. Election

The election is on 14 September.  All elections cause business dislocation and customers put off buying decisions, so allow for this and brush up on selling skills.

5. More Acquisitions

Assets and businesses are fairly priced and some even quite cheap.  There are many businesses seeking to grow, looking to achieve the benefit of scale, by acquisitions.  Sellers, this would be a good year so ensure the business is ready for sale.  (We do this with an Information Memorandum and a Valuation).

6. Competitive Businesses will do Well

Stay ahead of competitors and ensure you compete on value not just price.  Understand the industry and market (a good SWOT analysis does this), be clear on your competitive advantage (why do customers buy from you?), and switched on with your marketing (from this month, over 60 marketing strategies for any industry will be accessible on our website by our clients exclusively).

7. Economy

Most economic indicators are still pretty weak, but leading indicators are looking positive.  A catastrophe in Europe, US or China is unlikely, consumer and business confidence are improving, a slowdown in mining should allow other sectors to grow.  The message is Planning; set Goals and Targets, measure and monitor often, analyse the numbers and focus on the key levers for growing a business.  (We have a Profit Improvement program - ring me for details, the initial discussion is free, the whole program is not costly, and it can be reduced if you do some of the steps yourself).