I’ve come across a lot of advice on social media recently on how businesses can improve their finances during the economic crisis.
One expert recommends that you cut back your overheads and pay down debt. Another has 10 ways to keep your energy bill manageable. A third believes you should create alternate revenue streams…
It’s not exactly rubbish, because it *could* all work.
But I still wouldn’t start paying down debt just because some guy online thinks it’s a good idea.
You see, every business’s circumstances are unique. Your challenges are different to those of your peers and competitors.
Your biggest problems might be fuel costs or fluctuating exchange rates…
Theirs might be inflationary pressures, low margins or recruitment problems.
Even if you both struggle with the same problem – say, debt – it will still manifest differently. For example your debt might be easy to serve, while theirs might be an immediate threat to their business’s viability.
Meanwhile, your assets, customers, suppliers, competition, spending habits, margins and so on are different again.
As a result, there is no “one size fits all” solution to financial woes – or even one common secret to improving your profitability. The best solution for you may not work for someone else; it may even do harm.
Managing your finances and getting your business into the best financial shape to get through this recession always requires a completely bespoke approach.
You cannot rely on generic advice, and you should be wary of any accountant who does not delve deeply into your financial situation before suggesting changes to your finances.
That’s why here at Insight Associates, the very first thing we do when we work together is take responsibility for your numbers.
We ensure that all the right processes are in place to produce accurate and timely monthly accounts for your business, as well as cash flow forecasts and other essential financial data. Then we help you interpret these numbers, so that you have the clearest possible understanding of your own financial position.
Only then can we put together a tailored, individual plan to maximise your profit; help you grow faster; and in this current economy, make sure you’re well-positioned to thrive during adverse external circumstances.
Your plan will look like nobody else’s. It all depends on what your balance sheet looks like, on your assets and liabilities, and on your vulnerabilities and opportunities.
And that’s why it’s so effective.
To find out more about how we can strengthen your financial position, get in touch with me today. Simply hit ‘reply’ to this email or call us on 01279 647 447, and let’s discuss how we can help.
Warmly,
Garry
