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

LETTER: Photo normalises unacceptable situation

The controversial photograph showing a family with all the females with their mouths taped shut and the father holding a sign reading "peace on earth" shown during the principal's address at the McAuley Catholic College Year 12 Graduation Ceremony last month.

Resident clarifies community sentiment towards offensive photograph

1990-2015: A life lived full remembered one year on

"Hayden never had time in his life for diabetes."

Kalti on the trail of grand master's title

TOP TRACKER: Tracey Knox and her champion tracking dog Kalti celebrate their latest title, a Master of Track and Search.

Tracey Knox and her dog Kalti are searching for new titles.

Local Partners

Green light for sports centre to re-open

NEW operators hoping existing users will return to sports centre and get 'business back to normal'.

Tea party with the 'Queen'

TRADITION: 1955 Jacaranda Queen Stella Wilson sits with reigning 2015 Jacaranda Queen Charlotte White at last year's Jacaranda Afternoon Tea.

Meet the royal patyu in style

Making steps for 'Blacky' in Walk 4 Brain Cancer

Grafton locals are doing a Walk 4 Brain Cancer in Sydney for Robert Black.

Team Blacky aims to better $5000 to battle brain cancer.

Sound of Music star to compere An Afternoon at the Proms

This photo provided by Twentieth Century Fox Home Entertainment shows, from left, Chairmian Carr, as Liesl, Nicholas Hammond, as Friedrich, Heather Menzies, as Louisa, Duane Chase, as Kurt, Angela Cartwright, as Brigitta, Debbie Turner, as Marta, Kym Karath, as Gretl, and Christopher Plummer, as Captain Von Trapp, in a scene from the film, \"The Sound of Music.\" The 1965 Oscar-winning film adaptation of the Rodgers & Hammerstein musical \"The Sound of Music\" is celebrating its 50th birthday in 2015. To honor the milestone, 20th Century Fox is releasing a five-disc Blu-ray/DVD/Digital HD collector's edition, the soundtrack is being re-released, the film will be screened at the TCM Classic Film Festival in Hollywood later this month and to over 500 movie theaters in April. (AP Photo/Twentieth Century Fox Home Entertainment)

Saraton's rich history of stage and screen honoured in musical tribu

Priscilla concerned people will forget about Elvis

Priscilla Presley source Bang

She says she feels responsible to keep his legacy going

Taylor Swift files lawsuit over alleged groping

Taylor Swift source Bang

Swift has commenced legal action against a DJ over the incident

Kanye West threatens to boycott Grammys

West says he won't go to the Grammys if Frank Ocean's not nominated

Why this actress wasn't embarrassed by nude photo leak

Leslie Jones source Bang

'If you wanna see Leslie Jones naked, just ask,' she said

Dad's Army comic genius Jim Perry dies

Jimmy Perry, the creator of Dad's Army.

Dad's Army series captured all that British people savour

Check out some fashions from the Coast festival

FASHION: Ocean Zen range.

Images from the Sunshine Coast Fashion Festival show what's hot

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

Dusit Thani finance crisis 'just a small hiccup'

ON TRACK: Springfield Land Chairman, Maha Sinnathamby, Ipswich Mayor Paul Pisasale, Developer Richard Turner and Springfield Land Deputy Chairman, Bob Sharpless, at the recent resort sod turning ceremony.

Property developer says project remains firmly on track