Ask the Experts: Merx Business Finance Series

Working with a trusted finance expert – be that an accountant or financial consultant or other – plays a crucial role in business success.

These experts work with a large range of businesses of different sizes, industries and models, and have a wealth of knowledge to share.

Recently, we asked a few of our trusted colleagues for a few top-tips that they believe would be of value for business owners. Here are the first in a series of tips we’ll be running over the coming weeks.

Top-tip: “Lending conditions change due to the appetite of funders and economic conditions. Business owners need to understand the current environment and be realistic about their business proposition.”

Merx comment: So true. Change is constant and small to medium businesses can be more vulnerable – be that to credit availability, market conditions, competitor actions, personnel needs etc. Getting into a rhythm of reviewing a business from the ‘helicopter perspective’ and in view of all market and internal factors is a sound strategy not only for preservation, but for achieving growth.  

Top-tip: “Cash flow is everything: the air that your business breaths – without oxygen you are finished. Strive to work on the business rather than in it (easier said than done) and understand the business: what the USP is, what the breakeven is, what the market is, and what the impediments are. This coupled with a sound financial plan, with sensitivity analysis built in, is critical.”

Merx comment: Sound words. Don’t let the all too human-emotion of ‘wishful thinking’ ever play a role in cash flow or business planning. Having a robust understanding of the value your business offers and to whom; what it really costs to deliver your value; what you need for contingency; and projected risks to your operational ability, is the absolute minimum level of visibility a business needs at their fingertips.

Top-tip: “Appreciate diverse thinking and feedback: What are other ways of doing things and how can I do things better.” 

Merx comment: We see the positive impact of this all the time – a client has had a conversation with, for example, their accountant or another expert, and there’s a ‘wow’ moment where a new approach or even just a tweak to a process makes a huge difference. And that difference could be in terms of efficiency, work-life-balance, the bottom line or other. In our experience, constantly seeking thoughts on how things could be done differently, is one of the key skills common to many successful business people. 

Give us a call on 09 215 9364 or email us at fundgrowth@merx.co.nz if you’d like to set up a time to talk.

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