The William Buck Business Pulse is a survey of clients and contacts, of business of various sizes and across a wide range of industries. The survey is designed to provide information about how colleagues in business are feeling about their markets and their prospects for the year ahead.
We understand that sometimes being in business you can feel very isolated. The media portrays the economy in one way or another but what is accurate and what is sensationalised?
William Buck is here to support our clients and associates with information and support.
Our next business survey is underway now.
Some results of the last survey are detailed below:
Vision and growth
When asked about a “clear Vision for their business, ”48% of the respondents felt they had a clear vision of their business for the coming financial year and 30% believe they would grow by more than 10%.
This is a positive indicator although having a clear Vision does not entirely translate into expectations for business expansion. These results reflect the economy at large with information from the National Australia Bank economic reports showing that the private sector is struggling with expected growth of only 0.5% in the coming year and the RBA signalling potential interest rate cuts.
The sectors facing the most difficult conditions are retail, manufacturing and construction. While those in health and IT have reasonably favourable conditions.
For the efficient operation of your business, for clarity of your customers and staff, a clear Vision is essential.
A strategic plan for your business can help clarify you Vision for your business so that your staff and advisors know what you need from them and how they can assist.
If you are looking to expand or simply maintain your business, having a clear understanding of your financial position and forecasting results and performance can aid in decision making.
Owner reliance and investment
A reliance on the business owner can be a weakness in your business; 69% of the respondents either agreed or strongly agreed that their business relies too heavily on their input. The reliance of a business on its owner is extremely common in SMEs. Where a business relies heavily on the owner for success, this is often an undiagnosed risk both for the business and the owner. If tragedy occurs, there can be a compounding impact if the business also suffers. A good mitigation is succession planning and regular reviews of personal insurance levels.
Respondents indicated that 47% were going to invest more on their business this year. Investing and growing a business is what many business owners do. However, diversification can also be something to consider in an overall wealth building strategy. It is never wise to have all your “eggs in the one basket;” as such, building wealth outside the business, as well as inside, can help to diversify your investments.
In terms of external investments such as property or shares, 52% of the respondents confirmed they would be looking to invest. Of those that wanted to invest 53% feels that they have support from their bank to do that.
Both of these results indicate confidence with expectations of investing outside the business and an expectation of support from lenders. Interest rates are expected to continue to fall this year. However, the impact of these rate drops will decline as the official interest rate approaches 0%. The banks are not expected to pass reductions on in full and previous rate drops are not having the impact that was expected. The Government may be forced to consider other stimulus such as increased public spending. However, with the recent bushfires, virus threats and now potential flooding, over commitment by Government could threaten their much-coveted budget surplus.
William Buck works with property buyers’ agents who can assist in locating and negotiating the purchase of residential and commercial property investments. We also work with financial planners who can work with you to develop an overall strategy for wealth building. If you would like more information, please contact us
Innovation
Innovation is a key component of modern business. Futurists are increasingly commenting on the impact of technological advancements on business and the evolution of the modern marketplace. Our research shows that 61% of the respondents believe their business will be able to grow organically and 44% are looking into innovation and diversification for their businesses.
When working with clients on developing marketing and development plans, we use a customer pillars approach. This is a process of reviewing your client base and placing yourself in the shoes of a client, customer or patient and asking yourself;
- Why do my clients use these services?
- Why did they choose us originally and continue to choose us?
- What else would/could I supply them?
Innovation is a buzz word, but it is happening.
Our positivity index sits at 57 for this quarter. Reflecting the general mood of our client base is positive without being overly so.
William Buck will continue to ask our clients to provide information on a quarterly basis and report information back on a regular basis to our clients. We will also seek to include ideas and commentary in addition to this data which we hope you find useful and educating.
If you want to be a part of this quarter survey, click here.
As always – if there is anything, we can do to help please feel free to contact us.
