Managing Business Risk

In my last blog, I looked at some external factors that affect the performance and profitability of a business.

Now let’s take a look at internal factors, particularly decisions to be considered around business risks such as bad debts and the loss of a key person in the business.

Stress Testing Can Strengthen a Business (Part 1)

Many SMEs have survived the GFC credit crunch, worked their way through the maze of compliance and corporate governance requirements, and then at the start of 2011 were hit with the impact of devastating floods and cyclones.

The recent disastrous Queensland and Victorian floods and North Queensland’s Cyclone Yasi will have a direct and indirect impact on the SME sector that is likely to be felt for many months and even years to come.

Directors have an obligation to be properly informed about the financial position of their company and to ensure it does not trade whilst insolvent.

With SMEs bearing the brunt of the recent disasters, the directors of SMEs should focus on answering this key question: “what is the ability of this business to adapt?”.

For businesses not likely to be affected by the floods, this process of attempting to disaster proof their business as much as possible is still a useful process for directors to initiate.

Stress testing to avoid business failure
To protect themselves and their businesses, directors must ensure…

How To Improve The Profitability Of Your Business

There are many matters that can indirectly affect the performance and therefore the profitability of a business.

During my next series of blogs I would like to talk about some of these issues:

1. External factors – the business at large (such as the economy, industry and legal issues)
2. Internal factors – within the business (e.g. accounting practices and management).

For now, I will look at some business at large factors, in particular industry decisions to be considered around corporate structures, competition and reliance on one industry.

Business Recovery After the 2011 Queensland Floods

In the coming days Vantage Performance will be providing checklists, Q&As and 5-step recovery plans to help businesses affected by the severe flooding in Queensland to get back on their feet.

These floods are expected to have a multi-billion dollar impact not just on Queensland but on the Australian economy. Queensland accounts for approximately 20% of the Australian economy, 60% of global coking coal exports and 28% of Australia’s fruit and vegetable production. As a result of the floods, IBISWorld has downgraded its GDP forecast for 2010-11 from 2.9% to…

Profit Improvement Initiatives

One of the key aspects of any business turnaround is, of course, profit improvement. There are many methods of improving profitability, including cost reductions, increasing sale price, outsourcing and improving product mix and gross margins.  I will touch on a few of these techniques in this and future few blogs, and provide some tips on [...]