Running an SME involves constant change, especially in manufacturing and import/export. For these businesses, strong finances and strategic thinking aren’t just goals; they’re vital for survival and growth. Navigating global trade, supply chains, and market shifts requires smart financial management. Discover four practical steps to not only survive but thrive in this competitive and unpredictable landscape.
1. Understanding Your Finances: Know Your Strengths and Risks
Financial success begins with a comprehensive understanding of your business’s financial position. Pete Dossett, a seasoned financial expert with 30+ years devoted to serving SMEs, began as a banker and later pioneered CLS Brokers to better support SMEs. Now assisting a portfolio of ‘blue-chip SMEs,’ he stresses the importance of SMEs understanding their strengths and weaknesses. Dossett advises, “Identify your strengths and weaknesses. Different lenders offer different things. Traditional banks might not always be your best bet, and often won’t come to the table, so explore other funding options that match your business.”
For manufacturing and import/export businesses, this involves delving into the intricacies of cash flow management, supply chain financing, and the unique risks associated with international trade. Knowing the financial pulse of your business enables you to make informed decisions and align your financing strategies with your specific needs.
2.Building Relationships: The Secret Sauce of Financial Success
In the world of global trade and business, success hinges on relationships. Dossett stresses the significance of strong ties with financial partners. He says, “Build strong ties with financial partners. Choose wisely because not all lenders are created equal. Having a reliable network ensures you get the right support tailored to your needs. Trust is key in business, and that is even more true when it comes to finance.”
Dossett’s focus on trust highlights the importance of reliable and transparent collaborations, especially when navigating the intricacies of international trade agreements and supply chain dependencies.
Wayne Morris, CEO of Fifo Capital, is an expert in helping businesses with their finances, specialising in trade and supply chain finance for SMEs. He emphasises the importance of building strong relationships with suppliers, distributors, and logistics partners to achieve your financial goals: “When you and your suppliers work together, it makes each business stronger, creating a synergy that’s more powerful than each one on its own.”
For manufacturing and import/export businesses, this is especially crucial. Fostering relationships extends beyond traditional banking, creating a resilient ecosystem that supports your financial objectives and strengthens your supply chain. By virtue of this, it adds extra protection to your business.
3.Using Your Money Wisely: Making the Most of Working Capital
Working capital is the lifeblood of manufacturing and import/export businesses, serving as a critical tool for growth and resilience. Dossett stresses the importance of viewing working capital as a resource and using it strategically. He suggests, “See working capital as a tool. Use it wisely and flexibly for growth. A commercial broker can assist in finding the right solutions, creating successful partnerships that benefit everyone.”
For businesses involved in manufacturing, managing inventory levels and production cycles efficiently is paramount. Import/export businesses must navigate the timing of payments, currency fluctuations, and international payment terms. Dossett’s advice resonates with the need for adaptability and strategic deployment of working capital to seize opportunities and weather challenges in these dynamic sectors.
4. Facing Challenges and Grabbing Opportunities: Be Proactive
Manufacturing and import/export businesses operate in a landscape marked by both challenges and opportunities. Dossett acknowledges these dynamics and advocates for a proactive approach. He notes, “Tackle challenges head-on. Be ready to grab opportunities. By addressing obstacles and embracing growth prospects, SMEs set themselves up for long-term success.”
Trade uncertainties, geopolitical shifts, and market fluctuations are inherent challenges in these sectors. However, Dossett’s call for proactive engagement aligns with the resilience required to navigate these challenges. Being prepared to pivot in response to market trends and leveraging opportunities for expansion are crucial elements of a successful financial strategy for manufacturing and import/export businesses.
Takeaway: Navigating the Financial Seas for Long-Term Success
Just as businesses carefully select their staff, Dossett highlights the importance of choosing the right financial partners who take a genuine interest in your business. He shares, “Helping SMEs with finances isn’t just a job; it’s a passion. You should expect that from your partners. They need to understand your goals, your cash cycles, how you operate.”
A good partner will challenge you and help you see the full picture. Solving today’s problems is one thing, but it’s not everything. It’s crucial to work with partners who consider the complete picture and guide you from the balcony, not the dance floor.
As Morris puts it “A good finance partner will identify options that will not only get you through today but set your business up for tomorrow.”
Fifo Capital empowers SMEs to optimise their working capital and put an end to cash flow problems. With Fifo's award-winning finance solutions, you can access up to $2 million in revolving funds to supercharge growth. Beyond financing, Fifo's expert team offers unwavering support, guiding you through common pain points such as late payments, rising inventory costs, overheads, and sales fluctuations. Take the strategic leap into sustainable finance and break free from the trap of quick fixes. Partner with Fifo to secure your business's future. Do More. Win More. Grow More. With Fifo.
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