Early signs for the economy have been good with retail spending over Christmas very strong and interest rates remaining steady for January and February. Booming economic confidence in the Asian region is driving continued growth of Australia’s mining industry. This is good news for Newcastle and Hunter Valley business as coal exports make up a large part of the local economy.

But I believe cash flow will remain tight during 2010 for small business. A change in lending criteria by banks and financial institutions has meant that borrowing money isn’t as easy as it was two to three years ago. This coupled with predicted Reserve Bank interest rate rises over the coming months will place pressure of cash flow for all sectors of the economy.

Be vigilant and continue to monitor your cash flow on a regular basis. Be aware of changes within your business especially associated with your customer accounts. Continue to keep your bank manager up to dates with what is happening in your business even if it isn’t good news. And please remember that the team at Taggart Partners is here to assist you.

On a more personal note, I am thrilled to announce that Taggarts will be moving its offices back to Hamilton. Taggarts and the Hamilton business district have a long history with my father Alan operating out of Beaumont and Murray Street for 36 years before moving to Broadmeadow in October 1990. I look forward to bring you more information about the move soon.

Ross