Has your Business plan with stood the test of the Covid pandemic?
Covid-19 has created a huge amount of uncertainty, rendering even the best business plans obsolete. Owners are having to adapt rapidly, been forced to change strategies and ways in which they work. However, to avoid financial difficulty, it is vital businesses understand how the change can affect its long-term cash flow.
Many businesses have had to pivot
With factors such as the fast-changing government guidance, businesses have been switching their focus on emerging market demands. Within the manufacturing sector, businesses support UK’s fight against Covid-19 by using their specialist capabilities to produce PPE. This forward thinking and hasty change of plan can go some way to help owner managers continue operating during the crisis. Though it is key to point out that it could also have an impact of other areas of the business, as an increase in turnover isn’t always beneficial if in tandem with increasing costs. Therefore, expert advice is essential to learn exactly what it’d mean for the business’ numbers, to allow for adequate preparation for the potential risks and opportunities.
Cash is king
Cashflows should remain key to the company, as is collecting debts as soon as possible and agreeing favourable payment terms with suppliers. In addition, if the business is struggling to make payments, clear communication at an early stage is vital. While it may be tempting to clam up when times get tough, reaching out to creditors to discuss a plan of action will help to breed trust and protect the company’s all-important brand.
During uncertain times, ‘sticking to the plan’ isn’t always the best idea with the ability to make changes might be more profitable in the long run. With the right support and maintaining attention to their cash position, owner managers can demonstrate their agility while avoiding financial failure.
Posted in Blog, Healthcare, Hospitality & leisure, Manufacturing, Not-for-profit, Property & construction, Retail, Technology, Transport & logistics, Recruitment, Legal Services, Financial Services