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