Pictured above: Tony Falkenstein.
Tony Falkenstein, ONZM, Founder and Chief Executive of Just Life Group, has built a long-standing reputation for smart business thinking. Here, he offers some practical and candid advice for SME owners looking to stay cashflow-positive in difficult times.
1. Talk to your bank early
If you anticipate a cashflow issue, don’t wait. Communicate with your bank as early as possible. According to Falkenstein, “the bank is not your enemy, it’s your friend.” Being upfront gives your bank the opportunity to help you find workable solutions before things get too difficult.
2. Stay transparent with the IRD
Similarly, if you’re struggling to meet tax obligations, open communication with Inland Revenue is essential. Talking to them early can help avoid penalties and set up realistic payment arrangements. “It really works,” says Falkenstein.
3. Turn idle stock into cash
Falkenstein’s philosophy is clear: “Profit is a matter of opinion; cash is a matter of fact.” He advises business owners to review their inventory and clear out slow-moving stock, even if it means selling at a discount. Unused inventory ties up valuable capital that could be better used elsewhere.
By taking a proactive and pragmatic approach, SME owners can avoid cashflow crunches and keep their operations running smoothly.
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