SME Survey September Quarter 2009 shows considerable improvement - Succession Plus

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SME Survey September Quarter 2009 shows considerable improvement

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SME Survey September Quarter 2009 shows considerable improvement

By , March 12, 2010

The recently released National Australia Bank survey showed considerable improvement in business conditions among small to medium businesses – the NAB’s SME business conditions index improved by 15 points and is now in positive territory with 25% SMEs reporting good or very good conditions. Moreover SMEs are optimistic about the twelve-month profitability outlook with customer confidence/demand, seasonal conditions and more favorable competitive factors the key drivers of trading conditions. For SMEs in the lower turnover band [annual sales of $2M to $3M] the best conditions prevailed in health and wholesale, finance and property services were outstanding performers inthe midsize range [annual sales of $3M to $5M].

The twelve-month profit outlook for SMEs has also improved significantly following on from record lows reported last quarter this reflects strong optimism about prospects for the coming year and importantly SMEs are now the most optimistic about the annual outlook since December 2007. In terms of the twelve-month profit outlook, SMEs are most concerned about weak demand; and to a much lesser extent government policy, wage costs, labor availability, tighter competition, drought and funding costs.

We are certianly seeing evidence of this “upturn” amongst clients who are again focusing on growth plans and strategies to expand and develop business opportunties.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.