Out of the rabbit hole: How to keep your business in top shape

Choc Rabbit

Bibby Financial Services, a global finance group with offices in Australia, issued a timely checklist on how small businesses can get their finances in order. If you’re running your own business from home, read on for eggcellent tips (sorry!):

1. Chase the Easter bunnies
Send out invoices as soon as possible. Payment settlement periods are still around double standard trading terms (instead of 30 days, some people are paying at around the 60-day mark!), so follow up with debtors.

2. Don’t be a bunny
It’s hard to get tough on credit control but, remember, nine in 10 small businesses fail in the first year. And because of the financial crisis, bankruptcies are at record levels. If you don’t want to have a bad credit record yourself, you need to make sure your prospective customers are going to pay up. Do credit checks on new customers and set sensible credit limits.

3. Buy eggs in bulk at the best price
Hustle the best deal from your suppliers. In the age of the internet, you could get a better deal if you shop around or even negotiate longer credit terms. Where possible, pounce on discounts they give when you pay early or buy a certain volume of products.

4. Start collecting your eggs
Poor cash flow or access to credit is one of the main reasons some businesses go bankrupt. It’s going to hurt a lot but set aside time to learn how to forecast future cashflows: it’s worth it!

5. Don’t put your eggs in one basket
There are other options beside relying on a bank overdraft with a fixed limit that you need to pay at a certain time. Debtor finance is one option in cash flow funding for small and medium sized businesses, which releases cash against unpaid invoices almost immediately. This injects cash back into the business quickly when required to pay for supplier invoices, taxes and wages. It also does not require real estate security, unlike a bank overdraft. But if you don’t know much about debtor finance, do your homework before plunging in.

6. Join the Easter egg hunt
Find out what your competitors are doing and, perhaps, what new markets you can get more sales from. Maybe improve your services or offer promotions.

7. Treat yourself and loved ones to a chocolate or a hot cross bun
Running a small business is hard. Thank those who work for you or support you by buying them some Easter chocolates. And put your feet up, too, and enjoy a hot cross bun!

Thank you to www.bibby.com.au for supplying us with the tips above.