Fear

And while some are doing all the right things – trying to understand the biggest risks they face, planning how to deal with the worst case scenarios and building a war chest…

…More people are reacting like this:

They acknowledge that the economic climate is horrific, but they haven’t done much to prepare their businesses. They remain caught up in the day-to-day pressures and deadlines, and swear they’re going to plan for the economic crisis “next week”…

…which never comes.

If you can relate, you’re not alone. And it’s a very understandable reaction.

Economic conditions are deteriorating rapidly, with a new barrage of bad news almost every day. The headlines in the papers have a common theme: The end is nigh…

It’s overwhelming and demoralising. We’re used to being in control of our businesses, but it feels like we’re being swept up in a disastrous string of events, against our will.

Preparing your business for what’s coming may feel like a huge, even impossible task. There are so many difficult decisions to take and it’s difficult to know where to start.

It’s easier to forge ahead with your regular work, and leave the huge challenge of planning for the economic crisis to another day.

I’m sure you know, deep down, that it’s the wrong thing to do.

And although it’s difficult, you do need to take a deep breath and snap out of this state of paralysis.

You see, if you think that preparing for the crisis is frightening and overwhelming right now – when we’re still at the beginning stages, and your business might still be functioning completely normally…

…It’s going to be 10 times more difficult in a few months’ time, once the economic crisis worsens and you really feel the pain of higher costs, poorer customers, bankrupt suppliers, the weak pound, higher borrowing costs, rising rents and out-of-control inflation.

We’ve worked with distressed businesses, and the biggest mistake they all made was waiting for too long to seek help. By the time they were forced to take action, the stress was greater, their options were limited and it was far harder to take good financial decisions. In fact, it was often too late.

Early action is critical.

Now, perhaps you’re thinking: “I’ve got a great business. None of this applies to me.”

And it’s true. It’s entirely possible that your business will sail through the coming crisis unscathed – and even thrive.

But that’s a gamble. The reality is that every business faces danger right now because of external circumstances, which may have consequences you can’t possibly predict.

We’re all potentially facing a roller coaster ride this year, no matter how healthy your business is right now. We’re on a journey together, which can’t be stopped.

But that doesn’t mean you have no control.

You can still influence the direction your business takes, as well as the destination.

The key is acting as early as possible to understand your financial situation and evaluate the biggest risks to your business. Once you understand your vulnerabilities, you can plug the biggest gaps in good time.

You also need to think ahead, forecasting the most likely scenarios that could hit your business as the economy deteriorates. Sketch out how you might deal with them, so if the worst happens, you don’t have to figure out your game plan under pressure. Give yourself a starting point.

Finally, start freeing up some cash in your business. Most crises take money to solve, and so if things do get hairy this winter, you’ll want quick access to financial reserves. It’s so much easier to organise now than when you’re facing an emergency.

With better defences, forward-looking plans and some cash in hand, you’ll find this economic crisis easier to navigate – no matter what’s thrown at you.

The tragedy is, many smaller businesses never take these basic steps, because their people don’t have the skills, no one has the time – or it simply feels too overwhelming.

But we can make it happen for you, because we believe that businesses turning over £1 million or £2 million deserve the same world-class financial management that larger companies take for granted.

So if you want to put your business in the best possible financial position during this economic crisis get in touch with me today. Simply email or call us on 01279 647 447, and let’s discuss how we can help.

Warmly,

Garry