Autumn 2005

Competitive Advantage
FAL News
FAL Charity Movie Evening
Lloyd Morrison's Tips
GST Pitfalls in Verbal Agreements
Tax Payments Reminder
Tax Compliance Reminder
Tax Payers with Overseas Income
FBT Changes on the Way
Limited Partnerships - New Rules for Tax
Don't be too Quick to Sign Your Lease
Transfer of Depreciable Property

In business, competition is a fact of life. If you have no competitors then either you have a monopoly in the market (most unlikely for an SME) or you are in a business that no one else wants to be in (not good as this would probably indicate you cannot make any money!)

In addition to all of the usual competitive areas where you need to be better than others in your market e.g. quality, service, price, presentation, efficiency, use of technology, good people etc. There is one aspect of business success that is often underestimated and that is “taking a long term view”.

There is one simple dominant reason for this and that is that most of your competitors take a short term view! They are looking for the fast road to profit. They base decisions around making a profit in 5 months and not 5 to 10 years. Therefore they tend to by'pass making business investments that will only yield long term returns. The outcome is that there is less competition for long term returns. Less competition can also mean better buying value….better overall returns!

Making a long term investment in your business often requires sacrifice in the short term. However, ultimately you will be in a better position. Examples of long term business investments are expenditure on;

• comprehensive staff training,
• better business systems,
• research and development,
• a long term marketing strategy,
• buying your premises,
• carrying more stock and,
• upgrading technology.
  

Where can you invest in your business now that will yield returns in the long term?