You will have all seen the news, and it’s safe to say that it’s not pretty! The Bank of England has announced that it predicts 13% inflation and a long recession. This is the biggest increase that we will have seen in the last 27 years.
Unfortunately, this is going to impact everyone, and despite the past few years having been difficult for us all with covid, fuel and energy increases have also caused us all to tighten our belts. Now we need to do it just that little bit more, but we will get through this as long as businesses take the appropriate precautions.
It’s time to plan, not panic!
Preparing your business for the months to come and making it resilient to the times ahead.
Businesses know what it’s like to have to make big and hard decisions after the pandemic, and now we need to be prepared to dig deep and do it again. Begin by stress testing your business model, as you will need to consider what sacrifices you may need to make and strike off what is not working for your business.
Our Strategic team are set up to help and support you with the decisions that you need to make.
Knowing your Figures
It’s imperative you act now, as understanding where you are as a business is of utmost importance, ensuring your finances are as up to date as possible. Knowing your business figures will help you make business altering decisions. You can do this by forecasting for various scenarios and getting to grips with what your cashflow is like.
You can have a very profitable business but in times like these customers may have problems in paying, so your cash flow will be affected. Work out how long your cash buffer is going to last and don’t get confused about cash and profitability!
Lending
Lending is soon going to become harder to obtain, so we advise that if you were planning on looking at financing options for your business in the next few months, you may want to consider looking at that sooner rather than later to avoid difficulties.
There are many options on the market other than just banks to help with your cashflow and we have a team of people here that you can talk to about your options.
What is the right decision for you?
It’s important to make the right decisions for your business, as this will be a time where you need to review your team, technology, and processes to see what is letting you down. However, you don’t have to do this on your own, we work with businesses to help you review your business structure.
Nordens are here to help you review your finances and structures, look at where you can raise finance where you may need to loosen finance. We will be able to come up with a strategy to help you. If your business is going through a tough time, the last thing you need to do is bury your head in the sand. The sooner you fight for your business, the sooner we can help support you through this.
No matter how existential this may seem, it’s not always all doom and gloom, there are so many businesses that can thrive during a recession, so making sure you’re prepared can help you do exactly that.
Take a look at our video that we created last month on how to prepare your business for a recession.
If you would like to start the preparation for what’s ahead and make sure that your business will be one of those that thrives, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors will help you through this.
