Back to basics as consumers more cautious

LOOKING back the GFC has taught many hard-learnt lessons, but according to Moore Stephens director Alan Mitrovich, positives can be taken from the increased awareness people now have of their financial security.

Alan Mitrovich says the general public no longer has a pre-GFC ‘she’ll be right’ attitude to their financial security, and are now taking matters into their own hands.

“We’ve noticed people are far more aware of their financial future, their superannuation and the limitations of superannuation. They are increasingly concerned about their finances and are taking comprehensive steps to plan for it,” he says.

“From an investment point of view, clients are entering into risk hedgy investment strategies, where there are both upsides and downsides. They are by far the most popular.”

On the small business front, Mitrovich believes a ‘back to basics’ strategy is the best way to rediscover profitable business practise post-GFC.

“Certainly the message is that cash flow is the key, it doesn’t pay to be overgeared these days,” he says.

“Before the GFC it was much easier to make money. Now businesses have to focus on the simple things like being efficient, watching your expenditure and exploring whether you can provide better services at less cost.

“Decision making is also very important. Business owners must work things out quickly and make the hard decisions, not procrastinate.”

The financial planning sector is undergoing an overhall of its own, with Mitrovich seeing business owners increasingly looking for ‘holistic services’ that incorporate good accountancy and business advice with strong wealth management – rather than the traditional specialist firms.