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With spring in the air many of us will be looking to have a spring in our step! 

And to do that will be considering our health and fitness abilities! 

 Yes a Checkup!   

 A check of our health and fitness to see how ‘equipped’ we are to undertake regular exercise. 

Now, apply this thinking to our life interests, and ask, how many of us take the time to review the financial health of our Business! 

Makes sense to check the health ‘status’ of our Business on a regular basis as it can help to identify the early warning signs that our/your Business may be in trouble.  And it is easier to deal with problems sooner rather than larger ones later.

When was the last time you did a Business ‘Health’ checkup?

To help get started, it’s knowing what to look for, the early warning signs your Business could be ‘unwell’, in trouble!  

Below we highlight, 5 Checkup Early Warning Signs  and offer Steps to Solutions, tips on how to improve the situation. 

5 Checkup Early Warning Signs are: 

1. Changes in customer behaviour
2. Poor cashflow

3. Not keeping compliance obligations 

4. Weakening financial position

5. Lost passion.

If you identify with any of these warning signs here are our solutions:

      1. Changes in customer behaviour. 

 The signs, such as, a decrease in sales, simply less demand for your service or products, loss of customers or key clients.  

Another sign, more customer complaints or refund requests.

Steps to Solutions: 

Customers: Keep your customers happy! This means in all areas of your Business, products, service, venue and pricing. Customer service is vitally important, engage and stay connected. Engage in a meaningful way, a smile, a friendly greeting, deliver what is promised and give apologies if you can't.   Some small things that can make a positive difference.  

Pricing. Review your cost of goods and pricing on a regular basis.  With recent supply cost increases to ensure you increase your sale prices to maintain the same gross profit margin. You need to keep up with costs. It's important to keep your customers informed of any changes. You will be surprised that most of them will understand.

 Sources: Review your suppliers, ask can you get better deals or products supplied? Are there other suppliers you can consider!  Don’t be afraid to ask!

 Seek feedback: Find out why key clients have left you or if customer sales have declined, why, what is the reason?. A customer survey is an easy way of getting feedback. For major clients a personal phone call or meeting can be helpful and provide the opportunity to remedy or rebuild the relationship.

 Marketing: Digital, social media activity is the key in today’s business marketplace. Promote yourself through the various streams which can be a very cost-effective approach. Refresh and keep up to date to attract and engage new and old customers.

Cross-selling and Upselling: Consider these strategies. Cross selling is about selling products related to the one your customer is buying or already has, while Upselling is aimed at selling a more expensive version of the product the customer is buying or already owns. Worth considering.

        2. Poor Cash Flow 

In small Business cashflow is critical and a key indication of how you are going. Keeping on top of this flow will support your Businesses survival.Warning signs include:

• Inability to pay your debts
• late or irregular customer payments
• you have a cash deficit and are unaware of your cashflow position (inadequate financial records)
• Additionally, poor profitability, your turnover rate is healthy but your profits are low.

Steps to Solutions:

Debtors: Actively chase up late payments.  Be fair but strong with any recovery actions.

Payment terms (Debtors): Review the credit/ payment terms and conditions you offer. Adopt ‘quicker’ turnaround times for receiving if possible, part payments and up-front deposits.

Forecaster: Prepare cash flow forecast ‘tool’, weekly and diligently, regularly monitor.

Creditors: Seek extended payment times for your expenses, purchases.

Outgoings: review your operating costs and expenses to find opportunities to reduce your outgoings. Even small savings can help.

 Advice: Contact a professional.  Blackburn Accounting is qualified to help you with your cashflow management.  

Click here to book your consultation. contact us now

      3. Not keeping up with compliance requirements 

Signs to look for include not keeping up with required reporting activities and actions such as completing Tax returns, BAS statements or staff superannuation contribution payments.

Steps to Solutions:

Professional help: Blackburn Accounting can support you and help you get back on track. We offer a full range of services including accounting, bookkeeping and taxation. Call us for a consultation.

    4. Weakening Financial position

In simple language, without sufficient funds your Business will no longer be able to continue trading.

The signs include:

• outstanding debts you are unable to pay
• costs have increased but income, revenue hasn’t
• profits and sales are declining
• you are no longer drawing a salary
• there is an overreliance on credit, borrowed funds to operate.

Steps to Solutions:

Get professional help: Don’t delay, contact us Blackburn Accounting, we provide personalised service.  We will provide strategies to help improve your finances and offer qualified Business accounting solutions to increase Business efficiency, to stay in compliance with tax laws, and help boost your revenue and profits.

Government assistance: Check if there are any subsidies, Grants or allowances available for your Industry such as those in Federal or State budget announcements.

 5. Lost Passion

Are you a small Business owner! Are you finding yourself less interested, the passion you once had has diminished, and you are less ‘driven’.

These are telltale warning signs of ‘trouble’, as without the energy and motivation your Business will suffer the consequences. 

Most small Business are started with a dream, a passion and built with ‘blood, sweat and tears’.  If your heart is no longer in it, it’s time to take stock!

Steps to Solutions:  

Help: Seek the help of professionals, such as a Business ‘coach’ or Business advisor.  Independent Services that can critique and objectively assess the situation. Don’t delay, help can be a phone call away.

Blackburn Accounting can, will, support you with sound accounting advice and services including Family Business Management, Cashflow Management and Business Development.

Other options: If you are feeling ‘burn-out’ consider a change. For example, stepping away and bringing in a Manager while you take a break. Time-out to rest, recoup and consider the future.