Uncertainty is a constant companion in business. From economic fluctuations to technological advancements and geopolitical shifts, businesses face an array of challenges that can disrupt their operations and threaten their survival. Navigating uncertainty, not least in the current economic climate is a complex task. Having a reliable guide, in the form of strategic advisory, by your side becomes crucial.
Strategic advisory emerges as the compass that can help businesses steer through these unpredictable waters, identifying potential risks and capitalising on emerging opportunities. Our Strategic Advisory division lives by the mantra of working with business owners to make their personal and professional dreams a reality.
We explain the importance of strategic advisory during uncertainty, how it works, and also provide some case studies from clients whose businesses we’ve helped transform…
Understanding Strategic Advisory
Strategic advisory is a process where experienced consultants or advisors provide businesses with expert insights and recommendations to make informed decisions. These advisors assess a company’s current position, industry dynamics, market factors, as well as external factors to develop a comprehensive strategy that aligns with the company’s goals and objectives.
The Importance of Strategic Advisory in Uncertain Times
Risk Identification and Mitigation
In uncertain times, businesses face a myriad of risks, ranging from financial challenges to regulatory changes and supply chain disruptions. Strategic advisors like ourselves have the expertise to identify potential risks specific to a company’s industry and market, enabling proactive risk mitigation. By anticipating and preparing for these risks, businesses can minimise their impact and maintain continuity.
While uncertainty brings risks, it also presents unique opportunities. Nordens’ advisors possess the knowledge and experience to spot emerging trends and market shifts that businesses can leverage for growth. By capitalising on these opportunities swiftly, companies can gain a competitive advantage and position themselves ahead of their rivals.
When faced with uncertainty, businesses may find it challenging to maintain an objective outlook. Emotions and biases can cloud judgment and hinder decision-making. Strategic advisors provide an external, impartial perspective, helping businesses view situations more objectively. This detachment enables better decision-making and reduces the chances of making hasty choices driven by fear or uncertainty.
No two businesses are the same, and therefore, no single approach can fit all. Our strategic advisory offering features customised strategies that cater to the unique needs and circumstances of each business. By tailoring the recommendations to align with the company’s strengths, weaknesses, and long-term vision, we empower businesses to navigate uncertainty with confidence.
How Does Strategic Advisory Work?
The first step in strategic advisory is conducting a thorough analysis of the business and its external environment. This includes a review of financial data, market factors, competitors, regulatory requirements, and any other pertinent information. By understanding the landscape in which the business operates, our advisors can make informed recommendations using accurate data.
Strategic advisors work closely with businesses to understand their short-term and long-term objectives. This alignment ensures that the proposed strategies are in line with the company’s vision and mission.
Strategic advisors utilise cash flow forecasting as a crucial tool to aid businesses in making informed decisions and achieving financial stability. By projecting the inflow and outflow of cash over a specific period, advisors can identify potential cash shortages or surpluses. With accurate cash flow predictions, we can assist in optimising working capital management, ensuring that the company has enough liquidity to cover operational expenses and debt obligations. Additionally, forecasting allows businesses to assess the viability of new projects and make necessary adjustments to maintain a healthy financial position. Overall, businesses can navigate uncertainties more effectively and enhance overall financial performance.
In times of uncertainty, traditional linear planning may prove inadequate. Strategic advisory employs scenario planning, which involves considering multiple potential outcomes and developing strategies for each scenario. This approach allows businesses to be prepared for various eventualities, reducing vulnerability to unforeseen events.
Continuous Monitoring and Adaptation
The work of strategic advisory does not end with the formulation of a strategy. Our advisors continually monitor the business environment, assess the effectiveness of implemented strategies, and make adjustments as needed. This adaptability is crucial in uncertain times, just like presently, when conditions can change rapidly.
Nordens’ Advisory Client Case Studies
One of our clients (A) had been using another well-known advisory business for business support and guidance. They got in touch with us to explain he felt the service wasn’t having the desired impact due to it not being bespoke enough. The client felt lost working in his business and desperately needed assistance laying down foundations to allow him to focus on what he is best at, bringing in the business. He was regularly working weekends and was feeling worn out, impacting his personal life. With a new baby on the way, he knew something needed to change.
Our advisory team went to the client’s premises to help them systemise the back office and put procedures in place for weekly meetings. This ensured solid communication across the team regularly. We then worked with them to understand their financial goals which enabled us to agree on targets moving forward.
We are pleased to report that since doing this, communication significantly improved which translated into net profits being 200% above target. As well as this, it gave us great pleasure to witness the client not working weekends at all anymore and spending time with their new-born child. All of this produced a newfound focus and hunger to take the business to the next level and beyond.
This client signed up to our advisory service promotional offer of ‘money back if you meet your quarterly action points and do not achieve your goals’. After one year, the client achieved their one-year goals both for the business and for themselves personally. This included both of the directors moving out of his one-bedroom flat, to purchase a 3 bedroom property in East London. The other director of the company also completed on a £1.4m property in East London.
Since working with the client, they have expanded their team in London, reaching capacity at their office studio. They have also opened doors into the US market establishing a major presence. They are now receiving good, up-to-date financial information which has allowed them to manage their costs more effectively. This has enabled them to become more profitable, allowing the owners to earn more annually.
Our extensive work for the client included building various custom dashboards. These not only were able to present key performance metrics at the click of a button, but also saved the client thousands in hiring a software developer to build a custom tool.
Spotting key triggers, we were also able to help the client through identifying possible research and development (R&D) claims. Over the past 3 years, Nordens have saved the client thousands in the form of corporation tax due to R&D relief, contributing heavily to the growth, expansion and success of the client’s business.
Presently, economic uncertainty is a constant factor in businesses of all experiences, shapes and sizes. To thrive in such an environment, businesses need the right tools and insights to steer through challenges and seize opportunities. Strategic advisory emerges as a vital resource, providing businesses with the expertise to identify and mitigate risks while capitalising on emerging trends. By leveraging Nordens’ strategic advisory services, businesses can chart a course to success even amidst challenging times, safeguarding their future and sustaining growth.
We hope this has outlined to you how strategic advisory is used to navigate uncertainty and how Nordens’ Strategic Advisory division can support you. If you want to find out exactly what how our advisory services can transform your business then get in touch with our Advisory division today for a complementary consultation. Likewise, if you’d like to know any further information, or anything accounting-related, please do not hesitate to get in contact with us at Nordens, where one of our trusted advisors would be happy to talk you through your query.