Why Small Business Confidence is Low and What You Can Do About it

Why Small Business Confidence is Low and What You can Do About it .

• Why is Small Business Confidence in the Australian Economy very low ?

Recently Telstra and the Council of Small Business of Australia conducted a

Survey of Small Business called the

' Telstra Back to Business Survey ' .

  This Survey found that Small Business confidence in the Australian Economy

  is significantly lower than it was 12 months ago .

 This is very alarming as the conditions for Small Business were very difficult
 
 Post-GFC one year ago .

• What are the main areas of concern for Small Business ?

The main problem issues for Small Business revolve around Finance and Interest Rates .

The increase in Interest Rates are seen as a major reason why Business owners
feel the next 12 months will be very difficult . The pockets of Householders have been
hit hard by the Interest Rate rises and this leads to less spending .

Also of major concern is the increasing costs of Finance ,
and the difficulty of obtaining extra funding from the Banks .

• What are other major difficulties for Small Business ?

The other major problem responded to on the Survey was the growing costs
of Government compliance .

• How does Small Business plan to deal with these problems ?

31% of responents said they intended to reduce Debt over the next 12 months .

• How can Small Business create Finance Solutions ?

In order to create Finance Solutions for your Business you have to be prepared

to Review your current Finance structures .

1. If Cashflow is tight review your discretionary spending and that of your Staff .
2. Is there any area of Credit Card expenditure that can be cut back on ?
3. Put in place an action Plan to deal with outstanding Monies owed to you by your Clients . It is our experience with many Small Business owners that the best option is not always to send these accounts straight to the Debt Collectors . This can alienate some of your best Customers , who may also be experiencing it tough . In many cases a third party representation on your behalf by a trained Business Consultant can achieve the desired results without  antagonising your Clients . Use Debt Collectors only as a last resort .
4. Engage a Business Consultant to independently review your Finance Structures , to contact your Bank to arrange a better deal , and to arrange Wholesale Finance where appropriate as a better alternative .    
5.  Use  a third party Business Consultant to negotiate on your behalf and you will be surprised  by what can be achieved . Ensure that your Business Consultant is trained in financial matters and is an experienced negotiator .

Disclaimer - No individual finance products are recommended in this blog . To find out what your financial requirements are meet with a trained finance consultant . No client  specific finance advice is being offered in this blog . These comments are of a general nature and should not be taken as direct guidance for your personal situation .

Copyright - Alpha Training -  Finance Solutions - 2011