The battle between saving and spending money is more than a personal fight with everyday Australians, its even on a national level!
So what can businesses within Australia learn from the policies of the Australian Government and big business, when it comes to borrowing money to re-invest?
Australia's national debt is hovering around the $1 trillion mark for the first time ever and may break through. The figure has now reached this number due to the government's stimulus spending and private borrowing to fund the mining and infrastructure boom. Analysis within the Treasury found Australia's net foreign debt may grow to become worth around 85% of Australia's total Gross Domestic Product (GDP). GDP (which is the net worth of all of Australia's goods and services produced within a single year) was $1.2 trillion last year.
In the private sector, banks and mining companies have also borrowed heavily overseas to fund the resources boom. The result of this spending and investment into the future benefit of the Australian economy means cash-strapped Aussies are turning to second jobs, selling belongings online and renting rooms to students to make extra cash. New eBay research shows 69 per cent of people are considering looking at new ways to get more cash as they struggle with rising interest rates.
BUSINESS CONCEPTS
Re-Investment, Cost/Benefit Analysis, Borrowing against equity, Risk management
QUESITONS:
1) How would a business manager create a Business Plan to analyse if a new oppotrtunity was to arise that they may invest in to make more money? What research could they conduct to ensure they reduce the risk of failure?
2) Develop a Business Plan for your small business. make sure to include sections such as Marketing, Financial, Operations, Ownership Agreements etc
So what can businesses within Australia learn from the policies of the Australian Government and big business, when it comes to borrowing money to re-invest?
Australia's national debt is hovering around the $1 trillion mark for the first time ever and may break through. The figure has now reached this number due to the government's stimulus spending and private borrowing to fund the mining and infrastructure boom. Analysis within the Treasury found Australia's net foreign debt may grow to become worth around 85% of Australia's total Gross Domestic Product (GDP). GDP (which is the net worth of all of Australia's goods and services produced within a single year) was $1.2 trillion last year.
In the private sector, banks and mining companies have also borrowed heavily overseas to fund the resources boom. The result of this spending and investment into the future benefit of the Australian economy means cash-strapped Aussies are turning to second jobs, selling belongings online and renting rooms to students to make extra cash. New eBay research shows 69 per cent of people are considering looking at new ways to get more cash as they struggle with rising interest rates.
BUSINESS CONCEPTS
Re-Investment, Cost/Benefit Analysis, Borrowing against equity, Risk management
QUESITONS:
1) How would a business manager create a Business Plan to analyse if a new oppotrtunity was to arise that they may invest in to make more money? What research could they conduct to ensure they reduce the risk of failure?
2) Develop a Business Plan for your small business. make sure to include sections such as Marketing, Financial, Operations, Ownership Agreements etc
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