Surviving in business requires a range of commercial, personal and management skills. To survive in tough times means careful management of your business, and being extra alert to financial, operational, management and marketing issues. The points below will get you thinking about these issues.
Finance
Cash shortages can prevent you from meeting your financial obligations and make it difficult to expand your business. In some cases, it will mean you will need to close your business.
It is important to know your cash flow position. To manage your cash flow, take note of the following tips.
• Account for every $ and ¢
• Install an accounting system that produces relevant financial reports and meets tax requirements.
• Keep your financial records and bookkeeping up-to-date.
• Use the information in your accounting system to draw up a budget and cash flow forecast.
• Manage your cash inflow and outflow – be prepared for anticipated tax instalments and other payments.
• Do your banking regularly, both for security reasons as well as keeping track of your cash flow.
• Reconcile your bank statements regularly, double-checking receipts and payments with your own records.
• Ensure that you receive, record and retain all tax invoices for GST taxable purchases to support your claim for input tax credits.
• Consider visiting your accountant every three months to review your business performance.
Money matters
• Bill your customers early and often.
• Keep a detailed account of all your debtors and act promptly on overdue accounts.
• Promptly follow up any dishonoured cheques.
• Consider offering discounts for cash sales or early payments of credit purchases.
• Consider alternatives to improve your sales terms, e.g. lay-by terms, payment terms, credit terms.
• Keep a detailed list of amounts that you owe. Your debts may build up without you knowing.
• Use payable credit terms to your benefit, increasing the effectiveness of your cash flow.
• If suppliers want to be paid early, ask about discounts for early payments.
Final Money tips
• Manage your investment debt. Don’t over-borrow.
• Keep some cash for rainy days.
• Don’t overcommit your personal expenses.
More information on this next week. FREE Intellectual Property Seminar
Intellectual property (IP) is the general name given to the laws covering patents, trade marks, copyright, designs, circuit layouts, and plant breeders’ rights.
Intellectual property laws protect the property rights in creative and inventive endeavours and give creators and inventors certain exclusive economic rights, generally for a limited time, to deal with their creative works or inventions.
Do you have an innovative product or service? Would you like to find out how to register a design, trademark or patent or how to commercialise your product or service? At this FREE two-hour seminar you will hear speakers from the following organisations:
• Intellectual Property Australia
• Davies, Collison and Cave (Patent Attorneys)
• Illawarra Innovation Advisory Service
• Local Illawarra / Southern Highlands Case Study
The seminar will cover what steps you need to take to secure your IP, who to contact and how much it will cost. You may also like to book in for a FREE
30-minute private meeting with a patent attorney to discuss your innovation further.
Seminars are being run in Wollongong, Nowra and Mittagong.
Time : 9.00am to 11.00am seminar with light lunch, then bookings
being taken for 30-minute individual meetings with
patent attorney
Date : May 6 - Wollongong
May 7 - Nowra
May 8 - Bowral
Cost : FREE
To register for the above seminars, please phone 1300 650 058 or 4223 3100. This is only a brief outline of the types of small business advice and assistance that we can offer. Want to know more? Remember I am a FREE service and can assist you in developing your business in many ways. Call me today on 4223 3100 or check out our website at www.illawarraitec.com.au | 
