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  Maintaining healthy cash flow can be challenging; between ongoing expenses and bills, poor cash flow can severely impact your customers, staff and bottom line. Business owners need to understand the differences between short and long-term financing when developing a cash flow strategy. There are various sources of finance available and each source of finance is useful for different situations. Choosing the right source and mix of financing options is crucial for good cash flow, so it is important to first determine your needs and then match a financing option to meet those needs. Financing options are often classified into two categories based on time period: short-term and long-term. Below are the key differences: Short-term financing Short term financing (working capital financing) relates to the finance needs that arise to finance current assets - for a period of less than one year. Working capital is used in the business’ day-to-day trading operations. Short-term financing can he

  Having no plan can leave entrepreneurs feeling overwhelmed all the time. They have a number of decisions to make and the lack of a clear strategic plan for the coming year can make a noticeable difference. Experimenting with new projects, having a real need to hire additional help and launching new marketing initiatives can leave entrepreneurs wondering where to spend their time or money first. That’s why a plan is so important. Meaningful business planning is addictive and developing an annual business plan can help companies grow more than any other single business activity. Successful business plan sessions require a number of steps: Set a date: At least a few weeks before your planning session, set aside a specific day or more. If it’s your first planning session ever, you may need at least a few days, especially if you have employees. If you work by yourself, perhaps you can do this in just a half day. Set a place: Get out of the office! If you work at home, get out of your hom

  In today’s fast-paced and ever-changing business environment, it is becoming increasingly important to be aware of your competition. It is not just the activities of competitors you are currently monitoring that you should take notice of, but also the potential that new, indirect competitors may emerge. The rate at which new technologies are being developed, in addition to becoming increasingly affordable, means that competition may arise suddenly, and from unexpected places. A good place to start is by listing your top five direct competitors and your top five indirect competitors. A direct competitor is someone who offers a very similar product to your own, while an indirect competitor is someone who may steal market share from you by offering a different product. Once you have listed your major competitors, you should make a comprehensive list of all of their strengths and weaknesses. From here, you will easily be able to see what advantages and/or disadvantages your business is f

  Even though customers aren’t always entitled to a return if they simply change their mind, many Australian businesses have recognised that a fair returns policy can help build customer satisfaction and brand loyalty. This, in turn, can potentially turn a smaller product return into a longer and more profitable customer relationship. Having a good returns policy in place is a highly valued service for potential consumers, as it can help give customers the extra confidence needed to make a purchase. However, product returns can place additional pressure and work on customer service teams, particularly during busy periods. Streamlining your business's returns process can transform your customer service, making life easier for your staff and your customers. Here are three things small businesses can do: Highlight your returns policy Make sure your business's returns policies are clearly stated and posted visibly in-store, on packages and online. Customers don’t want to spend time

 Who's your customer? That's one of the most important questions any business can answer, but it's particularly important for small businesses. Why? Because only by having a clear definition of the exact type of customer you're trying to reach can you make the most of your limited marketing dollars and have the biggest impact on your bottom line. You need to know your "target market." Narrowing the type of customers you'd most like to reach — and the kind that are most likely to be willing, eager and able to buy from you — is a key building block to success. Defining your target market gives focus to all your marketing and sales activities, helps you craft your advertising messages and images, choose where and when to advertise, influences which distribution channels you use and perhaps even helps you decide the colour of your employees' uniforms or the music playing in your store. When defining your target market, keep the image of an actual target

 Even though most businesses want everyone to be their customer, this is not necessarily the right approach to making a profit. Instead, it is often best to think small in order to get big. To maximise your sales and profits, businesses should start narrowing their market to get a niche. Focusing in on a small sub-set of all potential customers seems dangerous. Why limit the pool of customers when it might already be small? But having a well-defined, narrow target market – a niche – gives a small business many advantages. Choosing a niche means finding something that immediately distinguishes you from your competitors. Having a niche immediately sets you apart from the mass of competitors; gives you a clear focus for your marketing and advertising efforts; gives you additional credibility when you’re trying to make a sale; makes you more memorable and often enables you to charge higher prices. So how do you choose a niche? Keep in mind that a niche must be based on objective factors –

  One of the top considerations new business owners face when preparing where to operate is location. Location is one of the most critical decisions as it can determine whether customers will enter your store or shop with your competitors. There are many factors to consider when determining location such as demographics, visibility, supply chain, competition, budget and legal and environmental obligations. Here are some tips to help you decide on the right business location: Determine what your business requires Understanding the key demographics of your target market can provide insight into where your customers live and prefer to shop. As most businesses will choose a location that provides exposure to customers, it is worth considering visibility and accessibility when deciding on a location. Other considerations include: Competition: Are neighbouring businesses competing or complementary? Future growth: Do you plan to expand or grow in the future? Will you have extra space if neede