Cashflow is Tight - 5 Tips to Survive
Ring your bank manager before your OD blows out. Banks have tons of money (more than you’ll ever need) so make a great case for their supporting you. They make their money by selling your their money but they won’t lend money to sloppy business owners. If you can’t build a creditable case as a sound borrower, there are some big questions you need to ask yourself.
Choose your credit customers carefully. Carry out a credit check on anyone who wants to use you or your services before paying for them. Even existing clients that have paid well in the past still need to be checked out. Good businesses do go down so a good payment history is just that – history.
Be brave and be prepared to turn down business if a new opportunity presents itself but comes up with a poor track record. The record is likely to be repeated. Better to have fewer paying clients than be flat out working for ones that won’t or can’t pay.
Get the fairest but firmest terms of trade. Go over your conditions line by line with your clients. Don’t just post or email them out and hope they are adhered to. Sitting with a client quietly reviewing your terms of trade makes your expectations very clear. If your gut tells you your client is too quickly saying yes to everything, then think again about selling on credit.
Invest in a rock solid debtor management regime. When cashflow is tight, clients and customers don’t always volunteer to pay on time. They need a forward reminder (email or phone call) that their account is due for payment (say) next Friday. Ask if there is any reason it will not be paid. Then follow up the day after due date. Yes, you are being a pest but it’s your money and your clients have your goods or services so you are only asking that they keep their side of the deal.
LEADERSHIP DEVELOPMENT PROGRAM
Become a High Impact Player in Your Business
Become a high impact player in your business with the help of our The Icehouse Development Programme. This programme will unleash both you and your employees’ leadership potential by further refining your leadership skills allowing you to lead your team from the front.
You’ll walk away from the programme with a new found drive and energy for success to embed into your business culture.
TAX TIP ONE
How to Cut Your Tax Bill in Half
It’s that time of year when annual accounts are being prepared for last year and your tax payments are being calculated for the next 12 months. For companies that have had a great year – and there’s a lot of them out there – paying tax often takes the gloss off the profit. But this is only the case when no tax payments have been planned or budgeted.
Tax planning should be an integral party of any financial plan and although we guarantee to our clients that they will not pay one extra dollar of tax if we have all the information we request in front of us, we can’t make your tax liability disappear. So do plan for paying tax. It’d be a lot less painful if you’re prepared.
And how do you cut your tax bill in half? The only legal way is to halve your profit but wouldn’t you rather pay tax on $1M profit than $500K of profit? If we’re talking company tax, the first example leaves you with $720K and the second example with $360K. You choose which looks the best in your bank account.
Prepare Your Business for a Bright Future!
The Icehouse succession and transition workshop will work through a process to help you objectively and systematically understand yourself, your context, your business, your desired future and your options so you can plan your succession strategy.
Planning your exit from the business can often be a daunting task – with The Icehouse’s Succession and Transition Workshop it doesn’t have to be.
TAX TIP TWO
Tax Deductions on Rental Property Conveyancing
There is a $10,000 cap on the tax deduction of legal costs incurred in buying a rental property. Any person who spends more than this amount, on all legal costs, including personal, in any financial year cannot claim the deduction.
If you’re in this field, manage your legal costs and if in doubt, contact us to help ensure you don’t miss the deduction.
We regularly publish the Step Up Business and Tax Tips Newsletter.
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The remarkable story of Andrew Fleming and how he took control of situations that seemed impossible.
Andrew Fleming is 45 years old and after surviving a life changing injury he wrote a book and is now an inspirational speaker.
We have a copy of his signed book to give away, just click the button below to go into the draw.
Mike Johnson from Essential HR, our “in house” consultant, has kindly offered one hour of his time to conduct a health check of an employer's HR processes, including a review of employment agreements to see if they comply with the new rules effective from 1st April. All new employees must have the new contract and all existing agreements must be updated. Failure to use the new agreements can make an employer open to a personal grievance claim Ouch! Click here to send an email to Mike to take advantage of his offer.
It’s been around forever but it’s worth refreshing our memories about how it works.
"Take the number 72 and divide it by the annual rate of interest that your money is earning to determine the number of years it will take for your money to double."
So if you’re paying 18% interest on your credit card, how many years will it take the credit card company to double their money? And all at your expense. You don’t need to be Einstein.
How innovative are our clients? Here’s Russell from Goom Landscapes using a traffic cone to dispense water to thirsty plants. Clever chap.
Thanks to our friends at
“If you aren’t making a difference in other people’s lives, you shouldn’t be in business – it’s that simple.”
Book a free forty minutes with Jamie (one on one or via Skype) to discuss any aspect of your business, issues you are having or your plans for growth.
Image thanks: FreeDigitalPhotos.net, Jesadaphorn, Njaj, Cooldesign, Sura Nualpradid, and Danilo Rizzuti.