Hand on your heart...how resilient are you?29th April 2020
Today I want to ask you a question, which some people may find a little difficult.
Hand on your heart….
Just how resilient has your business been, in this crisis?
Now that the immediate rush to cope is fading, it’s time to do an honest review of just how strong your business is…
…Because we are going to continue struggling with the aftermath for months if not years.
And if we’ve learned anything these past two months, it’s that unexpected disaster can strike at any moment.
So consider, for a moment, what weaknesses this mammoth stress test revealed in your business.
What IT issues held you back? How about personnel issues? Or process issues?
How quickly could you shift direction, in the moment of truth?
And most importantly – just how resilient was your business, financially?
The latter is of course most crucial because if you fail financially, your business – by definition – folds.
The test I apply is this: Just how long could your business last under current conditions, without running out of cash?
Is it a matter of days… of weeks… or could you continue like this for quite a few months, before your business went into liquidation?
We’re all facing enormous challenges right now. Coronavirus is out of our control, but many of the problems our businesses are struggling with – like those IT, personnel or process issues - are usually solvable.
The problem is that if your business can only survive “days” or “weeks” before running out of cash, it might collapse before you have a chance to sort out those problems.
Ultimately, being in a good financial position buys you crucial time to fix things, when the going gets tough.
That’s really what resilience is.
In the past, businesses have ‘lived’ remarkably close to the financial line. We’re seeing substantial businesses that looked like they were thriving. But behind the scenes, they had tiny margins, no cash reserves and no credit lines.
When disaster hit, they were left completely exposed.
Your business cannot function like this in the future.
If the Coronavirus virus exposed rocky financial foundations, you must deal with them now…
…Because there are tough times ahead.
That’s where we can help you.
If you are turning over more than £1 million, we implement strict financial management for your company, so you are equipped to withstand the challenges that come your way…
…And can grow more easily and smoothly, too.
If you’d like to discuss how we might work together, just get in touch today. I’ll get right back to you.
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