SMEs have several external funding options. The preparation, process and turnaround time differs for each.
Determine which source best suits your need, find out how readily available that source will be over the coming months and factor a generous lead time into your plan for its use.
While you’re at it, you might want to project a little further forward and consider any longer range requirements you have next year.
Planning your funding needs over the whole financial year and demonstrating the expected return on investment /capital /finance, will enable external lenders to be better prepared, willing and able to meet your needs.
This will enhance your relationship and give you adequate lead time to deal with any issues that arise or put contingencies in place if required.
If demand for your product or services increase before the calendar year ends, make sure you have sufficient stock to meet anticipated demand.
How do your first few months of the year compare with the same period last year? Does that indicate a trend that means you need to adjust your regular stock levels?
If sales in your business typically slow down, you might capitalise on sales promotional activity or exploit the mentality of finalising deals and projects before Christmas to clear out old stock.
Ramp up communication with your customers and find ways to outsource or temporarily scale your operations to handle the fluctuation in fulfilment. Reviewing the capacity and productivity of your team will assist with this.
While we’re on the topic of team, check the mood and morale amongst your staff. Three-quarters into the calendar year and some of your team may need some support and attention.
An injection of fun or a bit of camaraderie is sure to lift everyone’s spirits. A project and common goal can provide the focus and drive to come back strong.
Share your targets and objectives for the quarter with your team. Relate these targets back to their areas of influence and control.
Where your capacity review indicates you’ll have a resource surplus, allocate tasks and projects to take advantage of this.
Or if you’ve got a competitive team culture, use that to your advantage and theirs, by providing an incentive if they achieve agreed targets.
Check and if necessary reset your own mindset and outwardly reflected attitude. This will make sure you’re in the best position to get the most from yourself and the business during this next quarter.
Marc Peskett is a director of MPR Group a Melbourne based firm that provides business advisory services as well as tax, outsourced accounting, grants support and financial services to fast growing small to medium enterprises. MPR Group is a member of the Proactive Accountants Network. You can follow Marc on Twitter @mpeskett
