asset management  business planning  finance 

The prospects for business in 2008 are good, but if your financial house isn’t in order, you might not be around to take advantage of it.

2007 is all but over and while it is important to look back and know what went on in your business it is even more important to look ahead. It is vital to be in good shape for whatever may be going to come your way.
The National Bank of New Zealand Business Outlook survey issued in October shows quite a lift in business confidence. There is no specific classification for the printing industry but with increasing pressure on retailers it will mean they need more printing to encourage sales. There has to be an election next year so make sure you get your share of all the work that will flow from that. It all means your business prospects for 2008 are promising. It is your duty to have your business ready and able to win the advantages from the available work load.The future benefits from being in business in 2008 could be lost if you go broke. I cannot help with your in house arrangements but I can show you the things you need to do if you want to end the year in good shape.

Cash flow
The most vital factor in any business is the cash flow. If you have one you can survive all sorts of storms while you deal with other pressing problems. No cash flow and it will be all over.
To get the maximum benefits for your cash flow and survival you need to speed it up coming in and slow it down going out. That means collecting the debts due to you when they are due and not leaving them until next week, next month or next year. Follow up accounts promptly.
You cannot collect debts if you have not issued the invoices. That is a simple basic fact but it is amazing how many firms leave their billing for weeks after the job has been done. Once the job is finished you must check the quote or estimate, note any additional work and costs and send out the account. If your supplier has not invoiced you then ring and confirm the amount, include it in your bill and send it out.
It makes good sense to follow up your invoices to check that the job was as required and that they were happy with the work done. It gives you the chance to seek more work and you could even ask when you could expect to receive payment. If the job was well done they are unlikely to mind being asked about payment.

Great devourer
Next thing to look at is your stock level. If it builds up it will be a great devourer of your cash. Keep a close watch on your stock levels. It is not always a good idea to buy in bulk to get a better price if it is going to be on your shelves for a long time. Find another job which can use the surplus stock or see if you can return it for a credit. Too much stock wastes time, wastes space and wastes money.
With all the usual business pressures it is easy to overlook general staff efficiency. Check on who is doing what and make sure you know what unproductive time you are paying for. When you know that you will be able to deal with the problem. You may find you need more staff to run the place efficiently. You have to know what the real problem is otherwise you will waste time treating the symptoms. That will simply add to your problems. When you go to your doctor you want your ailment treated, not just the symptoms. You should expect to deal with your business in exactly the same way. Find the problem and fix it.
Another vital factor is knowing what you have to pay out. The killers here are PAYE, GST and income tax. They can catch you unawares if you are not careful. If you delay or miss these payments the penalties are savage.

Profitability
The last matter to look at is the profitability of each job. Check the outcome with your quote. See where you went right or wrong and learn from the experience. In other words do not keep on making the same mistakes. I am sure I have mentioned these matters before. They are basic for any business but may be vital for yours. You ignore them at your peril. It has been a long year so please do not overlook having a good holiday.