Open the window

Rising full-time employment, steady growth in the commodities markets and a six-month window before the RBA raises rates again should be seen by smart companies as a window of opportunity.

BIS Shrapnel’s Richard Robinson says that the lift in metallurgical coal prices, with fairly high iron ore and high oil prices means that Australia is on track for record terms of trade. Australia is now on track for a trade surplus in excess of $30 billion this financial year.

The Federal Government is forecasting that commodity export earnings will be over $200 billion this financial year and there will be a continuing flood of funds into the economy with a $1.54 trillion windfall into the national economy over the next five years.

Under these prognostications it is not surprising that both business and consumer confidence is rising and the RBA is warning that it may have to put on the breaks in the second half of the year. Already we see the trade unions pushing for 30 bucks a week increase from Fair Work Australia and the ACTU calling for a “hybrid wage claim”.

Gary Morgan says, “Consumer confidence has improved slightly with 39% (up 5%) of Australians saying they expect their family to be ‘better off financially this time next year’ and 36% (up 1%) saying Australia will have ‘good times financially’ over the next 12 months are behind this week’s small rise.

So this means that smart companies will spread their wings while the window of opportunity is open. Begin by meeting with a small group of your best sales staff and business investors to examine ways to reach into new locations, explore new business partnerships and distribution pathways, export options and streamline advertising, marketing and promotion efforts to build your customer base.

Most small business leaders are aware of the SWOT process in developing their marketing plans, but smart companies will use the window of opportunity to conduct an AUDIO analysis for the next few months encompassing appreciation of their best customers, upstream arrangements with key suppliers, downstream deals with key distribution channels, inventory control and online trading and communications avenues.

According to Business for Beginners author, Frances McGuckin, some of the tips for this time include selling complementary products or services, teaching adult education or other types of classes and importing or exporting yours or others’ products.

“Diversifying is an excellent growth strategy, as it allows you to have multiple streams of income that can often fill seasonal voids and, of course, increase sales and profit margins,” says Chucking, who diversified from an accounting, tax and consulting business to speaking, writing and publishing.

Frances also gives the following tips on looking for new business opportunities:

• Make sure you’re maintaining a consistent bottom-line profit and that you’ve shown steady growth over the past few years.
• Look at the trends, both economic and consumer, for indications on your company’s staying power.
• Prepare a complete business plan for a new location.
• Determine where and how you’ll obtain financing.
• Make sure your administrative systems and management team are extraordinary-you’ll need them to get a new location up and running.

Costs of doing business and creating new customers will inevitably rise in the next financial year as a result of oil price, energy and new taxes, so it is smart to undertake a bit of solid strategic planning now.

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Dr Colin Benjamin is an entrepreneurship and strategic thinking consultant at Marshall Place Associates, which offers a range of strategic thinking tools that open up a universe of new possibilities for individuals and organisations committed to applying the processes of innovation, creativity and entrepreneurship. Colin is also a member of the global Association of Professional Futurists.