46% of survey respondents predict an economic downturn in the next 18 months.
Our newly launched Vantage Business Performance Survey asked 550 professionals on the front line including business advisors, management consultants, lawyers, accountants, bank managers and business owners for their views on the issues facing Australian companies over the next 12 to 18 months.
The following is a summary of the key findings:
54% of respondents said that insolvencies will rise at a faster pace than in 2006 and 44% predicted that insolvencies will continue at a 6% growth off a base of 12,486 in 2006.
According to the respondents the following sectors will be at most risk in 2007:
32% said Manufacturing
29% said Retail
14% said Motor vehicle
8% said Property
By far the biggest issues that will affect businesses over the next 12 months are:
Availability of suitably qualified staff 44%
Poor management of working capital 28%
Rising labour costs 20%
The vast majority of respondents indicated that less than 50% of businesses prepare regular cash flow forecasts.
64% of respondents indicated that less than 25% of businesses have an adequate business plan in place.
82% of respondents indicated that less than 25% of businesses have a succession plan in place.
96% of respondents indicated that less than 50% of businesses have an adequate employee incentive scheme in place.
88% said that interest rates will either stay on hold or rise by up to 0.5%.
These results would indicate that conditions are going to get tougher for many businesses over the next 12 to 18 months. Particularly so given that many of these companies will be lacking in the most basic and fundamental aspects for the operation of a successful and profitable business, being:
1. A regularly updated cash flow forecast
2. A detailed and up to date business plan
3. An effective employee incentive scheme
If you would like to discuss the Vantage Business Performance Survey findings please feel free to contact us.
Regards,
Michael Fingland
Managing Director
M +61 407 226 968
T +61 7 3229 5750
F +61 7 3229 5765 Level 5, 247 Adelaide Street
Brisbane QLD 4000
Our newly launched Vantage Business Performance Survey asked 550 professionals on the front line including business advisors, management consultants, lawyers, accountants, bank managers and business owners for their views on the issues facing Australian companies over the next 12 to 18 months.
The following is a summary of the key findings:
54% of respondents said that insolvencies will rise at a faster pace than in 2006 and 44% predicted that insolvencies will continue at a 6% growth off a base of 12,486 in 2006.
According to the respondents the following sectors will be at most risk in 2007:
32% said Manufacturing
29% said Retail
14% said Motor vehicle
8% said Property
By far the biggest issues that will affect businesses over the next 12 months are:
Availability of suitably qualified staff 44%
Poor management of working capital 28%
Rising labour costs 20%
The vast majority of respondents indicated that less than 50% of businesses prepare regular cash flow forecasts.
64% of respondents indicated that less than 25% of businesses have an adequate business plan in place.
82% of respondents indicated that less than 25% of businesses have a succession plan in place.
96% of respondents indicated that less than 50% of businesses have an adequate employee incentive scheme in place.
88% said that interest rates will either stay on hold or rise by up to 0.5%.
These results would indicate that conditions are going to get tougher for many businesses over the next 12 to 18 months. Particularly so given that many of these companies will be lacking in the most basic and fundamental aspects for the operation of a successful and profitable business, being:
1. A regularly updated cash flow forecast
2. A detailed and up to date business plan
3. An effective employee incentive scheme
If you would like to discuss the Vantage Business Performance Survey findings please feel free to contact us.
Regards,
Michael Fingland
Managing Director
M +61 407 226 968
T +61 7 3229 5750
F +61 7 3229 5765 Level 5, 247 Adelaide Street
Brisbane QLD 4000
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