Money

Tips to boost business confidence

Mike Hogarth
Mike Hogarth Brett Wortman

A NAB quarterly business survey has revealed that business confidence deteriorated across all industries in the September quarter.

The largest deterioration was said to be in finance, business and property, with particularly weak confidence recorded in manufacturing. Business confidence was strongest in mining, followed by construction, where it was neither expanding nor contracting.

A Sunshine Coast franchisee of CAD Partners, Mike Hogarth has encouraged businesses to follow a business model to boost confidence locally.

CAD Partners head Sue Hurst released five simple tips to follow that could add value to businesses and iron-out management and financial issues.

"It is about making sure business are on top of finances and are able to plan for the future," Mr Hogarth said.

"Businesses also need to start talking positive and it would make a big difference to their success."

CAD Partner's tips for thriving in 2012:

Business model improvement

This is about how well a business operated, how a business delivered their product or service and how the business was funded.

A business model can be a "fluid phenomenon", a model which is being constantly tweaked to achieve maximum efficiency and performance. Having the right model can make business life smooth whereas the wrong model can result in constant struggle.

SWOT analysis

Have a look at the business strengths and how they help the business compete in the marketplace.

Look at the business's weaknesses and consider what they're costing and how you can improve them.

Opportunities can be found in places you may not think of. Threats can be environmental and beyond your control, however, if you consider them and put in place appropriate risk management, you may be ahead of the competition when the proverbial hits the fan.

Constant improvement

The key to constant improvement is listening to staff, customers, suppliers, shareholders and advisors.

The best way to capitalise on constant improvements is to have good systems in place that enable absorption of improvements.

That way when you come to sell your business you've built a solid asset that can be handed over to a buyer and odds are you'll get a premium price. A systemised business is easier to sell to a new owner.

Cost management

Direct costs are those that are absolutely necessary to deliver a product or service, such as service labour or purchase of product, and are the biggest target for improvement.

Research your industry and technology to find better ways of operating.

A small improvement in direct costs can have a huge impact on your bottom line. Don't cut "muscle" in business such as effective marketing or good staff, but look for "fat" or resources that aren't delivering value.

Cash flow management

By 2012, some businesses have had a rough couple of years and getting to the end of their resources. They may have had to use cash reserves, borrow or reduce overheads. A good indicator of cash flow is calculating liquidity. A good measure of liquidity is "current ratio". This is the result of dividing current assets by current liabilities. It shows the number of times current liabilities are covered by current assets. Banks look closely at this ratio when lending, as they want confidence about loan repayments. Business owners need to know this for their own peace of mind.

Topics:  finance, management, small business, tips



Youth speak out online to start mental health conversation

SHARING STORY: Connor Tarrant is trying to help promote mental healthfor young people.

Connor Tarrant wants to help others by sharing his story online

Luke Douglas ends record-breaking NRL career

Titans player Luke Douglas takes the ball forward during the round 14 NRL match between the Gold Coast Titans and the Canterbury Bulldogs at CBus Stadium on the Gold Coast, Sunday, June 14, 2015. (AAP Image/Dave Hunt) NO ARCHIVING, EDITORIAL USE ONLY

Prop forward set to make switch to St Helens

Get ready to rock out in the clover at Pillar Valley

The Ninth Chapter will head to Pillar Valley on Sunday to join the local talent lining up for Rocktober in the Clover.

Get ready to Rocktober in the Clover on Sunday

Local Partners

Get ready to rock out in the clover at Pillar Valley

The Ninth Chapter will head to Pillar Valley on Sunday to join the local talent lining up for Rocktober in the Clover.

Get ready to Rocktober in the Clover on Sunday

Kim Kardashian West wants restraining order against prankster

She was attacked by Vitalii Sediuk for the second time in two years

Caravana Sun and friends set to shine at Yamba

GROOVE: Caravana Sun are set to rock Yamba Golf Club on Friday, September 30 along with friends Nocturnal Tapes and Nick & Sam.

Caravana Sun and friends set to shine at Yamba

Cliff Richard to release 101st album

Sir Cliff Richard's album cover

Sir Cliff Richard is to release his 101st album

Justice Crew: Grafton to host one of only seven shows

Pop sensations Justice Crew are heading to the Clarence next on Thursday, October 6 o perform their new show It's What We Do.

Justice Crew brings new show to Saraton Theatre

Clarence Valley property prices go through the roof

Buyers are hungry to sink their teeth into the Clarence Valley

UPDATE: Former rodeo champ's sale rained out, now back on

Larkhill local Ken Consiglio is having an auction of most of the things on his property.

'People kept showing up and we had to turn them away'

Couple build their own 'tiny house' for $45k

Holly Bowen and Oli Bucher built their "tiny house" themselves, only hiring a plumber and an electrician. Photo/supplied

The house, which is built on a trailer and can be towed.

Sunshine Beach property breaks real estate record

The property overlooks Sunshine Beach, as the backyard lawn meets the sand.

Sunshine Beach mansion sale smashes real estate record

NEW HOME: Agents to the rescue for family of nine

RELIEF: Tanya Cone (middle) with her kids and McKimm's Real Estate property managers Regan Firth and Nadine Greenhalgh who helped find her family a home.

DEX article prompts property managers to help family find new home

SOLD: Historic hotel finds new owner

Post Office Hotel Grafton

Photo Adam Hourigan / The Daily Examiner

Pub in new hands and heading in a brand new direction