A business crisis is a challenge for entrepreneurs to overcome.
According to a recent Business Monitor survey by MYOB, the economy is expected to go down in future years. A majority of small business entrepreneurs in New Zealand answered the survey with less positivity for the economy in the years ahead. The survey which was conducted with 1000 businesses nationwide, showed 51% of small-to-medium sized business owners are expecting a decline in the economy. ANZ's Business Confidence report also mirrors the MYOB survey result. It indicates that 29% of businesses felt that the general economy is not that good. The dairy industry in some rural areas is already feeling the effect of this decline in the economy.
The MYOB survey showed however that many business owners are still optimistic about the growth of their own business. A total of 39% of businesses in the retail and hospitality industries reported revenue growth and strong business performance. In Auckland, which is considered the driver of the country's economy, 37% of business owners reported improved revenue from the previous year. So even if there is a decline in the economy, there are many businesses which are still holding up and performing well. The MYOB survey also indicated that 9% of businesses are still planning to hire more full-time employees in the next year.
With the possibility of economic decline, the need for business owners to have professional advice is a must. Different accounting firms in Auckland can help provide solutions and strategies to ensure business performance remains robust even if there is a deterioration in the economy. Auckland accountants can offer professional business and financial advice to help business owners. They can also provide new business tools like using a cloud accounting system for transparency and understanding financial performance – on a regular basis and not just year-end.
The MYOB Business Monitor survey is a useful tool for business owners to help them be prepared for the coming year. It can be a challenge for business owners to find new ways to improve their businesses. Business strategies should be planned and rethought regularly to stay ahead if the possible economic turbulence comes. Possible deterioration and decline in the economy are the factors that business owners should always keep in mind because it is part of the business world. Accurate business planning and strategy are ways to address the challenges businesses may face.
Discover how we can meet your needs in times of business crisis. For any business advice, you can always contact our expert advisors on (09) 576 4166, or book an appointment online.