For business owners in recent times, there have been many obstacles to face. Some businesses have seen sales skyrocket, where others have seen a rapid decline, but for all business, there is uncertainty to deal with.
Coping with uncertainty is important to manage. Business owners are typically feeling
uncertain about their financial stability going forward, and, are unsure as to what that
means for their team (and the impact on their business).
Simply ignoring these challenges will not make them go away. So, at Kendons we are working
closely with clients to put plans in place. Simply assuming everything will return to business
as usual is, unfortunately, not likely…
The government has supported businesses with multiple subsidy options, for many
businesses that support is most likely running out during September.
So, what should businesses be doing?
Business owners should be putting a financial forecast in place. A financial forecast is an
estimate of future outcomes, taking into consideration many factors, for example both
historical and economical indicators. It is possible to model different forecasts for different
scenarios – to make sense of what ‘might’ happen.
If there is a cash shortfall, then a plan can be made before it happens. For example, talking
to the bank (in advance) and arranging temporary lending requirements, making structure
decisions, cutting costs or increasing revenue. While some of these decisions may be
uncomfortable to face as a business owner, it is important to front foot it.
Kendons has a lot of clients in the same situation at the moment, so we can confidentially
provide insight and resources to assist with getting through.
It’s important to catch it early.
If you need help with a Financial Forecast or would like a copy of our Business Continuity
Template, please contact us