As a business owner you need to think about the steps you should take in order to strengthen your financial position as the economic crisis worsens. This includes understanding the biggest financial risks you face, working out what could go wrong and filling any obvious gaps, and building up emergency cash reserves.
But it is difficult to do any of this planning for the future without a detailed, accurate picture of where your business stands today.
The knowledge you need includes:
Imagine trying to forecast what your financial situation might be in three months’ time without any of this information. Or trying to figure out where you are most at risk.
It would be impossible, no better than a guess! Yet too many business owners skip this step because they have a general idea of how their business is doing (although often inaccurate) or are just in a rush to take action. It’s a big mistake.
Similarly, any measures you take to protect your business might be completely wrong if you don’t understand your financial situation well enough.
For example, heading into an economic crisis, you might think you need to cut expenses. But a closer look at your accounts might reveal a much bigger – and more immediate – problem: Customers are taking longer than ever to pay, and you might run out of money within six weeks.
If you don’t address that issue right away, you are inadvertently putting your business at risk.
When new clients approach us, they often have concerns about making decisions on gut instinct rather than having accurate numbers to work with. They don’t feel in control of their business finances. They have realised that you can’t make confident decisions about where to lead your company without clear, current financial data.
Now much more so, in times of financial crisis, when the external environment is a lot less predictable and you are under additional pressure.
The first step when we work together is to make sure that you have accurate and timely financial information about your business – and that you understand it, too! Not only do we present your financial information in accessible formats that suit you, but we work with you, as your partner, to ensure everything is clear.
Then we help you use that financial information to make the best possible decisions for the future of your business, so you can lead your company confidently through good times – and bad.