Smart companies are preparing for a steady growth path and planning to take on additional quality staff for the holiday season.
Business development strategies are being moved from a pessimistic orientation to a cautiously positive approach to imports and a willingness to apply for finance for the coming year.
Corporate finance departments are dusting off old plans for expansion and looking for acquisitions again as a path for growth. Banks are heeding the pressures of the Independents in the Parliament and beginning to restore their welcome sign for lending priorities for successful cashflow business.
The key to this new lending environment is to check next year’s investments and inventory plans against hot tips such as:
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- What additional funds need to be set aside for the return to growth next year?
- Do we need to review recruitment and rewards to build our sales teams?
- Have we established credit lines and funds to cover an increased demand for our products and/or services such as trading stock, supplies and a shift from part-time to full-time staff?
- What additional funds may be needed to expand distribution or develop new markets, including developing the eCommerce website or taking on new business development team members?
- Is it time to set aside funds for research and development to go offshore when the US economy continues its climb out of recession?
- What capital items need to be replaced or upgraded in this environment?
Gary Morgan has confirmed our view that customers, despite the fears of Gerry Harvey this week, will give retailers hope that the important Christmas shopping period which is now starting will not be as poor as many have feared. Around the globe there has been a steady return to confidence and a willingness to go out and shop even as bailouts occur in Europe and the US continues with its Quantitative Easing program.
There has been a strong rise in the number of Australians expecting ‘good times’ for Australia as a whole over the next five years (40%, up 4%) follows continued talk about ‘Australia’s long boom’ driven by China, which is keeping the Australian Dollar at a high value close to equal with the US Dollar.
Consumer Confidence has rebounded from last week’s plunge (down 7.8pts after the interest rate rises); rising 4.7pts to 122.9 driven by a big increase in those saying now is a ‘good time to buy’ major household items – 64% (up 10%).
Planning ahead to get ahead requires smart companies to identify their best growth prospects, identify the compelling case for lenders to give the support for growth prospects and make a realistic assessment of how much business finance is required to make the most of the improving levels of business and consumer optimism.
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Dr Colin Benjamin is an entrepreneurship and strategic thinking consultant at Marshall Place Associates which offers a range of strategic thinking tools that open up a universe of new possibilities for individuals and organisations committed to applying the processes of innovation, creativity and entrepreneurship.
Contact: CEO Dr Jane Shelton, Phone +61 3 9640 0099