For the past few years business has been booming, you and the team have been flat out. You’ve hardly found time to put down the tools and crack open a cold one. But as every tradie is aware, where there is an incline in work, a decline often follows.
Insolvency experts are predicting smaller construction companies and sub-contractors will be harshly impacted over the next 12 months due to the softening property prices and federal election.
The Australian Subcontractors Association warns that the situation is becoming “incredibly urgent” due to the increasing number of larger firms that are having instances of slow or non-payments. This will impact smaller tradies and businesses as they will struggle to sustain themselves.
It is just not tradies that will be impacted by the slow payments from large organisations, the late payments will affect many small businesses that are connected to the construction industry and put them in a vulnerable position.
How can your business prepare?
It is imperative for smaller companies to look at their business planning very carefully to prepare for the predicted impact.
Due to a period where the next job for tradies was just around the corner, good business systems had not previously needed to exist.
How can we help at Power2?
At Power2we have the knowledge and experience to unpack your business and offer advice to how best prepare construction companies and sub-contractors for the next 12-month period. We can offer advice on how to best implement systems that will assist to sustain your business. Click here to minimise the risk for your business today.
Financial Planning services provided as Authorised Representatives of Power 2 Financial Services Pty Ltd ABN 51 164 747 595 Australian Financial Services Licence No. 444078