How to Boost Cash Flow in a Slowing Economy
The Australian dollar has followed a downward trend for some time now, so if you’re an importer of foreign goods, or even just a small business who buys equipment or product from overseas, this can mean a tighter squeeze on your cash flow. So how do you make your business flourish while the economy is slowing down and the dollar continues to fall?
1. Shop around
Does your business buy equipment or supplies from overseas? Now may be a good time to seek out alternative options. Don’t be afraid of change – there are plenty of options out there for small businesses, and you should frequently compare prices of suppliers and sources to make sure you’re getting the best deal possible for your business. Now might be a good time to look at local options as internationally-produced goods become more expensive. Save where you can so you can spend and invest elsewhere.
Take the time to look at alternative income streams. Consider offshore investments so you can diversify business risks geographically. This reduces the potential setbacks of exposure to slower growth in Australia.
You can also consider boosting your cash flow by getting rid of unused or obsolete equipment. Have a look at your inventory to make sure there aren’t any things that won’t be foreseeably used in the next twelve months – get rid of it and used the capital from it more productively.
3. Get creative
This is a great time to gain market share while your competitors are scaling back. It’s worthwhile to consider acquiring a smart business loan from Smart@Vance for product development and advertising while your competitors have their eyes pinned on the market. Don’t get complacent just because your peers are.