How to strengthen your business in times of increasing costs
From the 1st April 2022 the minimum wage will increase to $21.20 an hour. Small business owners who employ staff on minimum wage will have to increase wages accordingly. Small business owners are already feeling the strain of recent global and local events and this increase may mean they have less financial resources to reward their best staff, and funds for other work expenses.
This guide from Employsure conveys that staff are your biggest and most important asset. Looking after them will ensure a good investment. There are some pocket-friendly tips and ideas on how to retain staff in the guide.
Other ways to strengthen your business:
1. If cash flow is king, forecasting is queen – and making informed estimates doesn’t have to be confusing. Give us a call to chat through your objectives and we’ll help you develop a valuable, detailed, and easy to digest profit and cash flow plan so you can confidently stay on track as you grow.
2. Invoice quickly – good debtor management is crucial, so send invoices quickly, ensure your payment terms are clearly outlined and offer discounts for prompt payment.
3. Look at various ways to access funding – if forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.
4. Explore the right revenue streams – most sectors will have seen their face-to-face sales drop to absolute zero since quarantine restrictions came into place. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. An example of this is coffee shops that now sell roasted beans online (this will depend on lockdown restrictions). The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.
5. Run a variety of scenarios – changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan when restrictions ease. Scenario planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.
For a confidential discussion on how to strengthen your business, contact one of our team today. We’re here to help.
