Credit Matters Newsletters

This month, I decided to add another Business Conundrum for your consideration about the use of technology in business. As useful as technology can be, it also just as quickly exposes any weaknesses of your business's processes, systems and strategies.

Word of The Month and Inconvenient Business Truth segments continue to offer valuable business insights.

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If you are interested in reaching business prospects who may need your services or products, contact Kim to see what he can do for your business. There are many different opportunities to advertise your business via Credit Matters. The benefit of advertising with Credit Matters is that our newsletters only go to dedicated readers.

Forensic Accountants Australia Pty Ltd and BIR Solutions have joined our Better Business Club this month.

The Bank Doctor has also provided a quiz to help you gauge how keen your bank is for your business. It makes an interesting read. In addition, if you are looking for help in being a better communicator, QT's brochure contains information about an upcoming workshop on the 10th of September.

Technology is a wonderful aid towards improving the productivity of your business and saving of long-term costs.

Equally however, the use of technology soon shows up any inefficiencies and incompetence of your business, whilst adding additional unforeseen costs.

Technology is only a tool of business, and like any tool, if not used properly, can cause severe damage. In addition, good business is not simply a matter of one dimensional factors added together. Each factor plays one part of the sum of the business success. Therefore, unless each factor works effectively with the other factors, problems will occur.

Your conundrum therefore, is to understand how and why the technology tools you use in your business has improved or reduced your business productivity and does or does not save on costs.

The business and global communities appear to be slowly imploding with the Brexit decision, the uncertainty surrounding the effectiveness of our new Federal Government, the potential for war in so many areas of the world and the upcoming Presidential election in the US.

Nothing seems to be normal today, or maybe this is the new normal as many world commentators now suggest.

Perhaps as Michael J Fox suggests, we might have to just try and understand what is going on and find our way through it. After all there is probably not much we can realistically do if a Government changes, business regulations are changed or another new war starts somewhere in the world.

As business people and managers however, we are never completely helpless. There are always actions we can initiate to protect our business in these times. Many changes can be quietly put in to place and not all require massive amounts of money, change or disruption to our day to day affairs.

The major change however, starts with changing your mindset about dealing with risk. Once you have made up your mind to change, the rest of the changes start to make sense and come together in time naturally. The main problem is getting over the mindset hurdle which is stopping you making the changes.

If you are in business, the truth is you cannot be afraid to do business just because it seems there are potential troubles ahead. Business is always a risk and if avoiding risk is dominating your ability to do business, you may not have a business for long.

Having made up your mind to manage risk more effectively, your next strategy should be to build a structurally strong business. You can build a strong business with the sound foundations of (i) good business processes, (ii) improving risk management capabilities, (iii) developing a good reputation, (iv) trading with quality suppliers and customers and (v) employing professional personnel. Maintaining a positive cash reserve also has its advantages as it enables you to take up those opportunities which always occur, even in the toughest times.

It is also unwise to just sit on your cash because you can. Too much cash opens you up to other risks. Besides, banks are not encouraging you to save by providing positive benefits such as a good interest rate or any reduction of bank fees. Therefore, using any excess cash is another important survival strategy. For instance, paying your creditors, taking up discount opportunities, maintaining a positive marketing profile and upgrading your business assets and structures, is a positive use of cash.

Managing bad customers more effectively is another important strategy. This may mean dumping those customers, which add no value or are unwilling to compromise on their bad behaviour, is always beneficial. Reviewing smaller dollar valued customers may also be beneficial because a small profit is better than no profit. In addition, even in tough times, carefully trying new business initiatives and strategies can be an important source of sales.

There is no guarantee that a business with good foundations will survive all the problems which may lie ahead. Developing a strong business will certainly help however. Finally, it is well known that some of the best business opportunities become available in doubtful times. A strong business in these circumstances, can usually take up opportunities which are not available to their weaker competitors.