Reload About It

2010: The Year For Importers

While the world recovers from the global recession, Australia is taking it pretty easy.

Job losses were below anticipated figures, GDP growth rates exceeded expectations, and interest rates didn’t reach the “free money” levels of some other economies.

As a result of this, and some economic resilience by China, the Australian dollar is holding at above US 90 cents, and I tend to believe that this will continue to rise and hit US $1.10 by Christmas.

Many would consider this prediction impossible, given that since the dollar was floated in 1983 we are yet to hit parity with the US, but there’s a few more ‘ducks in a row’ this time around.

For one, and possibly the biggest factor, was the comment made by RBA Governor Glenn Stevens late last year that the RBA would not be interfering with the currency’s value during this ascent.

Normally, the RBA will trade in foreign exchange reserves to dampen the dollar’s value. This keeps our export prices from becoming too expensive for the rest of the world.

The downside to this is that the practice of dampening the currency causes inflation, which in turn puts upward pressure on interest rates, which is probably one of the reasons why the RBA has chosen not to interfere this time. That, and the fact that we now have significant Government debt, adds further weight to the argument for a higher Aussie dollar.

So whilst the higher dollar puts exporters under pressure, it does open the door for local retailers of imported goods to make their mark. Australian sellers of foreign-produced goods are facing potentially one of the most lucrative periods of the last 20 years.

This makes 2010 a great year to be an importer.

Business Planning: The Difference for SMEs

Often we get asked what actually makes up and goes into a business plan.

Most people understand the basics of a business plan and the process, however often expensive consultants try to “make one size fits all” as their mantra by rolling out templates or telling their clients they should read a book and all will be OK.

Unfortunately this doesn’t work for a business plan as every business and organisation is different in size, staff numbers, marketing budgets and growth strategies.

We have seen some of the smallest start up’s being the most growth focused and cash ready businesses around, willing to push the boundaries and take a risk.

Then we also see (in the majority I might add) businesses that are stable and supporting staff costs and marketing budgets already. They are sometimes wary of fast risky growth and make sure they plan out what they do next.

For every client though, we are focused on outcomes and results. Throughout the business planning process, we ensure that we provide a personalised and structured business plan service, with the very best business consulting and business advice delivered at all times.

Business planning outcomes will often include:

• A clear business plan, vision and mission
• Outstanding profitability and more growth
• More sales and leads with better customer retention incorporating thorough research
• Greater cost reduction
• Scalable and robust IT systems specifically for their needs
• Exceptional marketing techniques, strategies and campaigns
• A greater understanding of their unique “points of difference”
• Any other business help and business advice

Without these, your business plan may not be the investment it should be.