30.09.09

Economic Constipation not GFC hurting Small Business

This year in business has definitely been an interesting one. One trend I have noticed is that consumers and other businesses are holding on to their money. It’s not that they don’t have money – it’s just they are not letting it go and this is causing problems or more bluntly – it’s causing economic constipation. Without getting too graphic with this analogy it’s pretty obvious from the businesses I work with, that this is not a good thing.

Are you holding off on paying suppliers because customers are not paying you? That has been the trend but it causes a blockage that impacts on business momentum. Businesses are now having to spend more time chasing up money rather than being innovative and creative in their businesses. So from one business owner to another – let the money flow and pay your suppliers.A good strategy is to discuss the situation with your suppliers and customers and see if we can create a business society ‘metamucil’ and unblock the cash. Lack of cashflow has and always will be the biggest threat to a small business.

The economic downturn isn’t what’s hurting businesses it’s everyone holding on to their money and not paying that’s making things tough. Let’s not turn economic constipation into a contagious business illness!

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