With February around the corner, it is essential that you prepare your business for anything and while you have put together your new plan and strategy for 2018, the outcomes of the budget speech can have an impact. Spending, deficit, VAT and tax implications can have not just an impact on your business, but also your staff and your personal finances.
Keeping one step ahead is critical, especially in an uncertain economy where global factors influence the local market. As such, there are a few things that business owners can do to make sure their businesses are ready for the upcoming budget speech outcome in February 2018:
- Think of getting your business SME credit insurance. This is a clever way of making sure you’re a financially covered should the outlook for business be tougher and the risk of client payment failure be higher. How does it work? Your debtor’s book is covered and in the case of none payment from clients – you are guaranteed 50% of the original amount you were going to receive. And the nice thing about it is that you can tailor make your credit insurance policy to suit your business needs.
- Identify what skills are lacking in your business and should government be able to set aside budget for skills development for SMEs – you are ready to apply for funding to skill up. This can promote business growth and give you a competitive edge.
- South Africa’s unemployment rate came in at 27,7% in the second quarter of 2017 – as a business owner, try and create opportunities for young graduates with fresh minds and a new way of thinking. It’s a win-win for both – not only do you afford them work experience, which in essence upskills for a stronger economy, to but with a fresh set of eyes, new approach and unleashed from the company legacy, young graduates can bring innovation and vision to the company. And if that isn’t enough, it also enables the company to build their enterprise development points with the Department of Trade and Industry.
- Research how technology such as IoT and AI can benefit your business growth – SMEs can definitely leverage off of this innovation, a new way to look at streamlining services for improved productivity and efficiency.
- Ensure your business has sufficient cash flow to run in tougher months as positive change in the economy does not happen overnight. If you have money tied up elsewhere look for solutions that will help you release some working capital to keep you going. Take a look at invoice discounting or factoring which allows you to fund your business’s cash flow requirements by selling invoices to obtain short term funds – instead of waiting between 90 to 120 days to get paid – turning your invoices into instant cash.
Ahead of the 2018 budget speech, make sure your business ticks all the right boxes it needs to grow and protect its assets. Preparation is always considered the first step to any successful business venture – use past outcomes comparing them with the current ones to plan out the possibilities of your business and how they can be used to create new opportunities that go beyond the business.