What shape is your business in for 2021 & beyond?
If your business has altered in recent months due to the pandemic, it is not just the business framework that has had to be reshaped, but at its very foundation will be the need for a robust financial infrastructure that fits the new shape company and the 'new normal' as we move forward in 2021.
You'll need to reflect on what it is you are trying to achieve, whether decisions need to be taken about investments, divestments and/or supply chains, for example and what the right financial strategies are, so as to introduce resilience into the business, so you can cope more effectively if anything like Covid happens again.
Notwithstanding these, the biggest challenge for businesses right now is that most are operating on reduced revenues and without the required cash flow to support their operating overheads. So rather than relying on annual financial plans, which have little room for flexibility, the aim should be to prepare forecasts monthly and regularly evaluate business operations. Careful and consistent financial forecasting is essential to establishing businesses' needs in today's cIimate.
Equally so, is effective cash flow forecasting, especially during the early months of 2021 to protect yourself by keeping much needed capital within the business to be able to take advantage of future opportunities for growth or to handle any potential bumps in the road ahead.
When managing this kind of uncertainty, greater organisation and prudence is required if you are to be on the front foot to initiate change that's still in-keeping with your goals, as well as the market and the prevailing economic circumstances. So being realistic, keeping costs as lean as possible and fully understanding your financial position are vital if you are to maintain stability during 2021.
And the right preparation boils down to solid financial governance and planning.
GSM bring this and more to businesses, helping directors and business owners to strike a balance between short term agility and long term survival, equipping them with the knowledge and tools needed to predict the operations that should be a priority in sustaining the business and can yield the biggest revenue in the months to come.
For instilling greater resilience into your business for 2021 and beyond contact GSM today on 020 7935 3793