northland chamber

Be wary of the impending upturn….


Its time to reflect on the year ahead. We have experienced huge changes in our economy this year. Here are some handy Chamber tips for navigating your business through the next 6 – 12 months. We have divvied these up into two sections cash and planning

Cash

Install a tight cash management system. Reduce and postpone spending and focus on cash flow. Also your customers will try and rely more on trade financing in therefore your business will be under pressure to act as a bank. Be wary of this and put measures and processes in place that limit your exposure to risk. Work with your accountant to produce a weekly cash position report and forecast based on your lower expectations of income and expenses. Pre-empt any cash flow shortages well in advance. Although banks are tightening up on credit we know in Northland that our banks indicate they are still open for business. If possible restructure debt to give you the best cash advantage.

Planning

It has always been the opinion of the Chamber that businesses that forecast and plan will be the best suited for survival and prosperity. One practical form of planning is to develop a stress measure scenario for your business. In other words ask yourselves the following questions. What if Sales decreased by 25 % over 12 months? What if your customers took 45 days longer to pay? What if your main supplier ceased to exist? What are the early warning signs that these things are starting to happen and how do you measure this?
We also encourage our members and Northland business to definitely plan for the upturn. The Chamber can assist you with planning in the areas of Productivity, Human Capital and Technology. Working in these areas of your business now will put your business in an excellent position to take advantage of the impending upturn.

We are on the cusp of a new year. 2009 will bring many challenges, opportunities and issues. If 2008 is anything to go by the only constant in our world is huge massive upheaval and change. Whilst there is not a lot we can do about global credit crisis or the price of oil the actions outlined above have the ability to change your world for the better.

As in most circumstances there are opportunities to be had. This ‘recession’ will force many businesses to relook at their traditional rules of engagement. Our challenge to our members is to use the weakness of your competitors to redefine your industry. Feel free to give the Northland Chamber of commerce a call if you would like assistance or want to know where to from here…

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com