6 issues each business needs to consider

As economic conditions seem to improve many businesses need to consider the next steps. Taking advantage of the improving conditions is obviously being deliberated across Australia.

Since the defaults in mortgage payments affected market confidence in the US so severely in 2007, many businesses have been consolidating. But the rising price of money signifies that government expansionary policy has increased aggregate demand.

Here are six issues that each business needs to consider: 

1. Has your business properly stress tested its growth assumptions?
2. Investing in labour is subject to sovereign risk, such as, in Australia, new federal employment statutes that became operational on 1 Jan 10
3. Large company earnings might seem to have improved, but a large percentage of this is the removal of overly pessimistic provisions for market failures
4. If R+D and marketing were both cut during the downturn, which is the first area to be recapitalised if sales have slumped?
5. If your business has no online commerce profile, have you performed a cost / benefit analysis on investing in that area?
6. If your business ceased production / service provision today, how long could you realistically survive on your cash and receivables base?

If your business cannot confidently respond to these issues with evidence based material, perhaps your business needs to reconsider its plans.