Sadly, COVID has shaken so many businesses who have not had a chance to put a recession response plan in place: Contracts cancelled, increased staff attrition, sales way off target!
What will happen in the future; how the government will react and what the new normal will bring to each and everyone’s business creates a lot of pressure and uncertainty.
As a business owner, you need to make critical decisions to ensure the survival of your business. Unfortunately, there is no proven approach to this situation, there are no guides that would make you feel that your decision is right.
Despite the pressure, your decision should never be based solely on intuition or gut feel.
As a business owner, you need to make informed decisions based on facts and not willed by emotions. A decision that backed with a recession response plan.
Review your business financials (profit & loss, cash flow, marketing & sales KPI’s, break-even point) both current and historic.
From this data, design scenarios highlighting the impact of the current situation.
Create a series of “if this then that” scenarios that will help you see the impact of your decision in a worst-case scenario as well as what to do should things not work out.
By taking this recession response plan to your decision making:
- You’ll feel sound (and as relaxed as is humanly possible), knowing you have an action plan in place.
- You’ll be able to show confidence to your staff, your team or workforce that would help them feel secure because you have things under control.
- You’ll be able to adapt the speed and accuracy of your decision prior to execution.
You may say, “Well, I am not a numbers person.
We get that a lot.
And the hard truth is – it’s your money.
And yes, expect that getting used to ‘the numbers’ will take time.
If your bookkeeping is updated, it should not take time to get the numbers ready.
It will take time to formulate a plan, but it will surely help your business navigate through these trying times.
You’re a business owner. Numbers are the language of business. It’s time to learn the numbers and graduate to the next level of entrepreneurship.
Everyone can learn this, and it is a must for you and your business to successfully navigate through these times. It’s one of our key tenets here at Hemisphere Accounting – to bring your business back into balance.
It’s about knowing where you’re spending your money.
It’s about knowing where you can pull back and optimise.
It’s about knowing exactly how to forecast what you will need to maximise returns going forward.
But first, especially in times like these, it’s vital that you have a financial management plan.
Get your Recession Response Plan here: