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

Stay Connected

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

Higher booze prices 'best way to combat abuse'

Should taxes be raised further on alcoholic drinks?

Report examines best ways to combat alcohol and violence

8800 complaints about water, energy bills in Queensland

Maree Skellern from Tweed Heads Kindy Care showing the dramatic changes in the latest power bill.

More than $320,000 in billing adjustments

'UNREAL': Paddler videos moment whale swims under his board

Surfer Ziggy Albert (blond hair) and his paddle buddy on their way to Old Woman Island enjoyed the encounter of a lifetime when a mother whale and her calf popped up in front of them.

You couldn't find a better way to start the day than this

Local Partners

Wakeskating champ hit with $200 fine at school pick-up

AUSTRALIAN wakeskating champion Cody Murphy has copped a $200 fine for forgetting to carry his driver's license when making a five minute trip to school.

WATCH: NASA space station is live, see the view from above

In this picture taken from NASA's International Space Station from April 2015, the SpaceX Dragon is captured with the 57.7-foot-long Canadarm2 robotic arm before its installation to the Harmony module.

See the world from a new perspective as space station passes Rocky

Community garden set for Palmwoods

Kay Nixon at the Palmwoods Community Gardens will be hosting a launch day and inviting the ecommunity to come along and sign up.

Parcel of land to supply sustainable gardening for community

Barry Gibb is coming to Bluesfest 2017

FANS: Barry Gibb talks to a fan next to a cardboard cutout of his young self.

Aged 70, Gibb has re-launched his solo music career with a new album

Jake left broken-hearted by Bachelorette break-up

Jake Ellis is one of the final three bachelors on The Bachelorette.

GEORGIA chooses Lee and Matty J as her final two suitors.

MOVIE REVIEW: Doctor Strange is out there in a good way

Benedict Cumberbatch in a scene from the movie Doctor Strange.

MARVEL'S new superhero takes viewers along on his mind trip.

MOVIE REVIEW: Jack Reacher sequel falls flat

Tom Cruise in a scene from the movie Jack Reacher: Never Go Back.

THE film's title Never Go Back should serve as a warning to fans.

The Bachelor contestants find love with each other

Former Bachelor contestants Megan Marx and Tiffany Scanlon have confirmed their relationship on social media.

MEGAN Marx and Tiffany Scanlon confirm relationship on Instagram.

Liam Payne wants to wed Cheryl Fernandez-Versini

Cheryl Fernandez-Versini and Liam Payne

Liam Payne reportedly wants to marry Cheryl Fernandez-Versini

Bindi Irwin 'honoured' to make MAXIM HOT 100 list

Wildlife Warrior named among Australia's most beautiful women

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June