Cash flow is crucial for small businesses
With interest rates creeping upwards and the outlook for the Australian economy looking rosy, many small businesses seem to still be doing it tough.
With interest rates on the rise consumers are being hit with higher mortgage costs, meaning the average 'Cost of Living' is on the rise, and therefore the 'Discretionary spending power' of consumers is on its way down.
Make It Cheaper says: "Interest rate rises mean that small businesses face higher costs to service any debt or outstanding loans. It equally means that a small business' typical customer may be thinking twice about buying a new product or service from them, as they too will have a higher mortgage bill to fork out for.
It's important for a small business owner to remain focussed, ensure any business debts are paid off quickly, whilst making sure any outstanding creditors are chased, and that they pay up. Cash is king, and a small business needs that cash flow now more than ever."
It's easy to overlook the simple things; we recommend a business to focus on:
- Consolidating loans
- Decrease debt servicing costs
- Managing the cashflow
- Promoting the business with simple effective marketing
On all of the above, make sure you shop around and compare products and services to ensure you get the best deal that works for you.