Soaring during Coronavirus08th July 2020
One of our clients has a training business. And since the Coronavirus crisis erupted, they’ve been experiencing a surge in demand – particularly for online material.
They quickly adapted some of their face-to-face courses so they could be moved online (a process that was underway anyway, but which was significantly sped up).
And now, they’ve never been busier.
Their story is actually not that uncommon.
Over the past few months, a lot of attention has been directed at companies in distress. It’s understandable – even thriving businesses have seen demand disappearing quite literally overnight, or the lockdown has made it impossible for them to operate.
Getting these companies back on their feet is going to be a community and national effort.
Under the circumstances, there’s been little space in the national discourse for companies that have done well – or even grown – during Coronavirus.
That doesn’t mean they don’t need attention.
Like I said, there are a lot companies that are doing exceptionally well right now.
Maybe your business model was particularly suited for a Coronavirus environment – for example, you offer online services (like the client I mentioned). Or maybe you have been particularly agile, and been able to capitalise on the changing environment.
For many companies, Coronavirus has been an opportunity for growth!
But if you’re lucky enough to be soaring right now, this is actually a moment of danger for you.
I know it doesn’t feel like that…
When orders and money flow in, you feel on top of the world! (Especially – let’s be honest – when everyone around you is talking about business failure.)
The problem is that even during good times, growth needs to be managed carefully.
If you’ve experienced a surge in demand, you may already have experienced some difficulties fulfilling all those orders.
You may not have had all the staff… Or raw materials… Or processes to cope smoothly and easily.
Very fast growth puts pressure on your existing resources.
And if you can’t adjust quickly enough, it can create enormous problems as you let down clients and struggle to cope.
The stress can be unbearable as you work day and night to keep up…
Much of the pressure is financial.
When you grow fast, you may need to invest a lot – in new team members, equipment, raw materials, infrastructure and even (now that Coronavirus restrictions are easing) office or factory space.
That takes cash!
But if you’re not managing your money very carefully, you can end up spending all that money before the new revenue comes in…
And you can run out of cash at the very moment your business seems to be doing better than ever.
In fact, you can run out of money even when – on paper - you’re very profitable (a concept many business owners struggle with!).
And when you run out of money…
…That’s the end of your business.
This is painful at the best of times, but can you imagine how awful it would be to lose your business precisely because you experienced wild success!?
That’s why careful financial management is key if you’re growing fast.
The truth is that if the client I told you about at the start were trying to manage this growth with just a bookkeeper and an accountant…
Or even a local accounting firm that was just doing their taxes and end-of-year accounts…
They would most likely get into financial trouble.
Their accounting function would probably be overwhelmed, and certainly couldn’t give them the tight financial planning and close support a high-growth business really needs.
Under these circumstances, you need an expert financial team to help you plan your cash flow carefully, managing it literally every day…
To ensure you don’t overtrade…
Don’t run out of cash…
And to work with you closely, as CEO, to make sure you understand your financial situation and that you are making good financial decisions at every stage.
That’s what we do here at Insight Associates.
And that’s how we can help you too, if you’re lucky enough to be at the helm of a company that is growing through this Coronavirus crisis.
Just click here – or call 01279 647447 – to get in touch with us today.
There’s nothing more exciting than watching your company forge ahead.
But let’s make sure that it guarantees your future – rather than causing you dangerous stress and difficulties.
Outsource my finances | I need an FD | I'm looking for a Finance Director | My business is struggling | I want better financial management | I need a better accountant | My financial systems are a mess | my business is failing | Interim FD |I need help with business development | I want help with my accounts | I want to replace my bookkeeper | I'm looking for an outsourced finance department | Accountants in Essex | Stansted Accountant |I want to outsource my accounts