Monthly Archives: February 2011

Small business construction contractors across the sub-trades are well placed to benefit from this mini-boom. However, they need to be prepared for the longer payment terms that will inevitably come with the contracts from larger residential home builders – in this sector, 30-days from the end of month payment cycles are the norm which means sub-contractors may be waiting up to 60 days to get paid. Continue reading →

As sales growth returns to the small business sector, SME owners and managers need to be mindful of the cashflow challenges that growth can create. As we often tell clients in our business, “most businesses don’t die of starvation; they die of gluttony”… Continue reading →

one way for the engineering companies and sub-contractors on either the NBN or the rebuilding projects can compete for talent is not by paying MORE, but by paying staff/subbies more QUICKLY. How can companies do this when they may not get paid for 30-60 days? Continue reading →

Before SMEs in areas impacted by the natural disasters sell down their personal ownership stakes in the businesses they fought so hard to start, build and sustain, they should explore forms of finance that will not dilute their equity. Continue reading →

The RBA submission focusses more on the price differential for residentially secured loans where the borrower is a business owner as opposed to an employee. What about the business owners who don’t own property – what are they meant to do? Continue reading →

Instead of industry competition, SME’s would really benefit from industry co-opetition… Continue reading →

The “portable bank account” debate misses the point that the major challenge that small businesses face – accessibility to finance in the first place. The reason this portable bank account is of little benefit to the small business is that small business owners need credit – by way of loans or debt factoring – as opposed to more efficient transaction / cheque accounts. Continue reading →

Every sub-contractor I have spoken to who picked up work for BER-funded schools has complained that they have lost money on these jobs. How could this be when there has also been claims that the buildings are not good value for money? Continue reading →

Last week during the Australia Day holiday, I reflected on some of the aspects of Australian culture that I really admire. One of these is ‘egalitarianism’ but the reality of the Australian business world is that egalitarian values simply do not extend to the small businesses of Australia. Continue reading →