The effect of the Global Financial crisis still has an huge effect in businesses worldwide.Unfortunately it has affected finance options and profitability in all types of industries and organsations.

A recent report from accounting firm Taylor Woodings.

"THE number of companies placed in administration in June jumped more than 25 per cent,accounting firm Taylor Woodings says.

And Victoria was among the hardest hit states, with the number of companies that collapsed 35 per cent.

Taylor Woodings said the national figure was expected to increase in coming months.

In June, 1027 companies were put in administration, up 25.7 per cent on the number in May, and 21.1 per cent higher than in June last year.

It was the second-highest monthly total on record, behind March 2009 when the financial crisis was at its nadir."

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The significant challenge posed by this ongoing crisis will impact the growth of small businesses and entrepreneurs. Their financial pressures will create a challenge and greater pressures.With the economy teetering on recession, companies are closing down and others are competing through spending cuts. Victoria, felt the brunt of the markets as companies performed poorly and reflected negative growth and many companies collapsed.
This is not a good situation as many ordinary people have been left jobless as businesses adjust their employment levels. I believe a business evolution is happening right now, and we are helping the new economy emerge.

How can small business owners prepare for an unsteady economy?

• Minimise variable expenses
• Reduce long term fixed expenses
• Focusing on higher margin products
• Internet sales integrated with physical sales
• Outsource back office processing(reduce costs)
• Increase opening hours - attracting new clients( using internet and nearshore processing)
• Increased customer services and delivery at the "speed of Google".
• Creative marketing - standing out from the crowd.

To learn HOW to grow your business, while reducing costs, check out what some of our clients have been doing. We are happy to share ideas and strategies with you. Just give Marisa, Mukhtar and kelvin a call and they will be happy to assist you.

Thanks
Kelvin