If you have an IT guy, he’s probably suggested at some point that you do a vulnerability assessment.
This is a test the tech guys run on your computers, to figure out where all the holes are…
…For example, where a hacker might be able to access data, whether you have passwords that are guessable, and a variety of other issues that I can’t really describe because I’m an accountant, not an IT expert 🙂
Then they write a report ranking the problems according to risk, so you can fix the biggest weaknesses first.
You need to conduct a vulnerability assessment for your business finances, too.
We’re heading into a very difficult economic situation this autumn. It’s no longer a question of “if”, it’s a certainty.
Inflation is at a 40-year high, energy prices are killing small businesses and households, Sterling is dropping, credit card borrowing is sharply up…
We can all read the way the way the wind is blowing.
So if you haven’t already done serious work to ensure your business can weather the upcoming storm, there is no time to lose. You must make sure you’re resilient enough to get through this.
The first step is to assess where your business is most vulnerable. Is your biggest weakness suppliers who might go out of business? A big client who might cancel their contract? Further changes to the exchange rate? An unpredictable cash flow? Or something completely different…?
Whatever the risks, map them out and prioritise them, so you understand which must be addressed urgently and which can wait a little while longer.
Then figure out how you’re going to monitor the biggest risks, so you’ll get some warning if they ever come to pass.
For example, if cashflow is potentially a killer issue for your business, you need weekly cashflow reports highlighting any issues as far in advance as possible.
Or if you’re worried about your suppliers, be on the constant lookout for missed deliveries, changes in their management structure and redundancies.
Finally, run a big “What If” exercise. Imagine that the most likely business-threatening scenarios came true, and then work out what steps you might take under those circumstances.
If the worst does happen, this will give you a starting point…
…You don’t want to work out an emergency plan under pressure!
This is all part of the work we do together when we manage your finances.
Why? Because keeping your business resilient is good financial planning. There’s no point doing your accounts really efficiently if the company’s going to collapse at the first sign of trouble…
Making sure you’re sustainable is a financial issue.
If that’s the kind of world-class financial management you’d like to have, get in touch with me today. Simply email or call us on 01279 647 447 to arrange a no-obligation chat. I’ll get right back to you.
Warmly,
Garry
