Money

How to not go bankrupt

Allan Johnson of Johnson & Tennent Chartered Accountants
Allan Johnson of Johnson & Tennent Chartered Accountants Janie Kayes

It is hard for anyone to be unaware of the significant changes in employment patterns in the Australian economy.

Daily, we are subjected to a diet of job losses, redundancies and jobseekers begging for employment. Even in Rockhampton, we are not immune to business failure.

At the same time, we read stories of employers desperately seeking labour for rapidly expanding businesses, particularly in the mining industry. The D&B Business Failures and Start-ups Analysis for the December 2011 quarter noted that 'outside the mining sector, sentiment is generally poor and the strong Australian dollar is straining profits'.

The key industries for business failure were retail, services and manufacturing. If you're in business and you haven't noticed a fundamental shift in your business activities, chances are that you've seen these failures reflected in your customer base.

Clearly the economy is undergoing some significant restructuring, and all businesses need to be sensitive to the changing landscape - whether you are fighting for survival or wondering what the best opportunities facing you are.

Business needs to be adaptable to survive

Even if your core business does not change, it is almost certain that you need to be thinking how you can run your business better.

Given the proximity of the Rockhampton economy to mining areas, we are the lucky ones. We should be faced with more opportunities than survival threats. While these opportunities are available, we need to take advantage of as many as possible during the boom times.

You need to have trusted advisors

Advisors are able to help you adapt and strategically plan. Even if they do not know the nitty-gritty of your particular business, some higher thoughts and ideas (and even a different perspective) can make a constructive difference to the profitable operation of your business - but only if you are open to consider change.

Engaging external help will also give you access to valuable experience - which will help you to avoid costly mistakes. Wouldn't you rather learn from someone else's failures?

Now is not the time for small thinking

Strategic planning is important at all times - none more so than now. Unfortunately, when businesses get busy, planning tends to become short-term and the longer-term implications of our current actions are often ignored.

Taking time out of a busy day to think seriously about the longer-term strategy for your business will help you avoid becoming one of the bankruptcy statistics in the future when economic conditions locally are not so favourable.

Topics:  allan johnson, bankruptcy, opinion


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Man arrested over bomb scare to stay in custody

Drama unfolds on Weyba Downs Street as bomb squad is called in.

Magistrate says accused has "snowflake's chance" of getting bail

Is Clive Palmer really in his Sunshine Coast electorate?

Clive Palmer was seen during Anzac Day commemorations at Nambour in 2015.

If you can believe what you read on Twitter Clive could be in town

Pt Arkwright resident wakes to screaming tyres, sirens

Paramedics were able to safely remove the driver from the vehicle.

Paramedics were able to safely remove the driver from the vehicle

Latest deals and offers

Missing man's body found in bushland at Coolum

THE body of a man who police believe to be Adrian Korst has been found in bushland near Lions Park at Coolum.

Man arrested over bomb scare to stay in custody

Drama unfolds on Weyba Downs Street as bomb squad is called in.

Magistrate says accused has "snowflake's chance" of getting bail

Is Clive Palmer really in his Sunshine Coast electorate?

Clive Palmer was seen during Anzac Day commemorations at Nambour in 2015.

If you can believe what you read on Twitter Clive could be in town

Pt Arkwright resident wakes to screaming tyres, sirens

Paramedics were able to safely remove the driver from the vehicle.

Paramedics were able to safely remove the driver from the vehicle

In sickness and health: cancer groom granted wedding wish

WEDDING BELLS: Andy Rahman, who has terminal cancer, married Emma Taplin at Sunshine Castle after My Wedding Wish granted his bucket list wish to get married

Life is no fairytale for Andy Rahman but one wish came true

Drunk driver caught in Yandina almost 4 times the limit

Man blows 0.193 at random breath test at 10.30 in the morning

RACQ releases SE Qld's worst choke points

Paul Turner, RACQ

Paul Turner from RACQ talks about our worst roads at peak time.

British family bashed in Thailand

Family beaten and kicked unconscious by gang in Thailand.

Family beaten and kicked unconscious by gang in Thailand.

Ben Hunt wary of Sharks Halfback

Ben Hunt of the Broncos looks to pass during the round 23 NRL match between the Brisbane Broncos and the St George Illawarra Dragons at Suncorp Stadium.

Ben Hunt talks about Cronulla's Chad Townsend.

Demand for acreage lots pushes up property prices

Property values in Cooroy have increased 25%

Property values jump in Cooroy and Peachester.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances