Pictured above: Rudi Bansal.
In challenging economic times, managing cashflow effectively is crucial for business owners. Rudi Bansal, Regional Manager for Auckland in Commercial Banking at Kiwibank, shares his top three tips to help SMEs stay financially resilient.
1. Be realistic and seek advice
Understanding your current financial position and where your business is headed is key. While it may be a difficult conversation to have, it’s necessary. Engage with trusted advisors, banks, family, and friends – sharing your challenges and journey can provide valuable insights and support.
2. Focus on sales and revenue diversification
Review your sales strategies and explore ways to diversify your revenue streams. Equally important is improving how quickly you collect revenue. If your business deals with debtors, ensure efficient processes are in place to minimise delays in payments.
3. Manage expenses without compromising your future
Cutting unnecessary costs can help, but be cautious not to cut too much. Economic downturns are cyclical, and conditions will improve. Maintaining key resources and intellectual property ensures your business is prepared for future growth.
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