The New Year is just around the corner, and we look at ways to make 2018 the best ever for your business. Some simple strategies taken today can help your business reach its full potential without being hounded by regrets of poor planning.
The lead up to the festive season is probably a peak period for your business, but it's worth finding the time to draw up a roadmap for 2018.
Let's look at three key steps that can make a valuable difference in the New Year.
Plan cash flow
Cash flow can make or break your business, and recognising periods when cash could be tight is critical to avoiding a financial squeeze – something that is a leading cause of failure among the nation's small- to medium-sized enterprises (SMEs).
Setting aside surplus funds in a high interest savings account can help to manage periodic requirements like tax remittances or staff super contributions.
Nevertheless, it also makes sense to have facilities in place that let you draw additional cash when needed. Your broker can help you decide on the option that is right for your business – from an overdraft to a business line of credit, and have these ready to go in time for the New Year.
Invest for growth
When you're in business, the expression “you need to spend money to make money” can hold more than a grain of truth.
In a highly competitive commercial market, it pays to invest in new technology and equipment to help your business forge ahead. From more efficient office equipment to much-needed IT upgrades, an investment in business equipment can enhance productivity – and also provide valuable tax savings.
If your business has a turnover below $10 million annually, you may be eligible for an instant tax write-off on new equipment costing up to $20,000. This popular initiative has been extended to 30 June 2018.
With a little over six months remaining before the instant write-down is phased out, it's important to look at funding options for new equipment that can improve your venture's productivity and growth prospects while also delivering an immediate tax break.
However, funding new equipment can be the challenging part.
Talk to your broker about the different finance options available. From a term loan through to hire purchase, they can source competitively priced funding for your venture and take care of the paperwork so you're free to focus on growing new markets.
Consider off-balance sheet finance
Lease finance remains a popular way for many SMEs to fund assets like a fleet of cars or heavy machinery.
Financing can have a critical impact on your business. Making sure you have the most competitively priced arrangements in place, with the features and structure best suited to your business, is a key building block to enjoy a prosperous New Year.