What to do with your business when the winds of BREXIT start to blow.
Winters Coming and there is plenty of evidence around us to suggest we may be in for a tough 2017. Many of our clients are already showing signs that the falling value of the pound is having an adverse effect on their results. With politicians and judges disagreeing on the process required to trigger Article 50 these effects are likely to get worse before they get better. Regardless of your view as to the rights or wrongs of Brexit, as a small business owner you cannot afford to ignore these signs.
What should you do now?
Be on top of your numbers
It helps to be cloud based. We are all heading in this direction in any event as HMRC moves ever closer to its ‘Making tax digital’ strategy, so why not get on with it and enjoy the benefits of up to date accounts and share the data with your Accountant, (Xero Cloud Accounting integrates your bank with your accounting software and produces really useful reports to help you improve profits quickly). Whichever software you use it is important that you identify and improve those Key Performance Indicators each and every month.
Manage your Cash
A good strong cash flow is essential for a business to withstand a tough year, particularly when sales might fluctuate unexpectedly. This is a good time to make sure you have sufficient funds to help you through this period. The lending market is still buoyant but that could change if the Brexit conditions deteriorate. Check how well you are collecting outstanding monies from customers and make sure you are not wasting any cash on projects that might not generate a solid return in 2017. Be tough with yourself and your team in this area!
Keep looking forward
The single most important action you can take is to have a plan for the next 12 months. This does not have to be a full business plan but it should be a realistic plan that looks at the whole business. A good plan can be produced on one piece of paper and yet still address all aspects of the business, (Financial, Customers, Team and Production).
How can we help.
If you need a review of your position and assistance with the production of a One Page Plan or additional funds to help you through, simply call us on 01937 584188 or email firstname.lastname@example.org
‘Remember, Hope is not a strategy’