Blog

COVID brought us uncertainty and you could say with the recent tsunami of unpredictability particularly from the fallout of trade tariff policy changes, uncertainty is alive and well! 

This raises the question; how prepared and well placed are you and your Business to respond to the challenges this uncertainty presents?  

Smart Businesses plan ahead. To prepare they identify critical uncertainties, then build flexibility and adaptability into the Business model, strengthen risk management strategies and embrace innovation. These initiatives are supported by fostering open communication and building strong relationships across sectors.  

Be smart, consider these 7 Steps to prepare your Business for the uncertain of uncertainty! 

1. Create a Risk Management Plan – Carefully examine all aspects within your Business to identify potential threats and vulnerabilities. Operations, including Accounts receivable, payable, Balance sheet, forecasts and vital cashflow.  Identify any risks, develop strategies to mitigate, know what it takes to keep your Business financially fluid, operational.  

2. Develop a Robust Financial Plan – Create this Plan by exploring if or what opportunities you might find. Consider diversifying income streams, if possible, to provide financial flexibility. For example, Government subsidies, grants, and speaking to your Bank about loan reserves. Consider cost savings, can staff take leave or drop-down hours if needed and negotiate best deals and terms with Suppliers. Vital, ensure you have sufficient cash reserves to manage during these uncertain times. 

3. Focus on Best sellers – Know your ‘winners’, popular products and customers.  Concentrate your marketing efforts on those, audience, types and preferences. Value, build loyalty and befriend your customers by delivering exceptional service and products. 

4. Minimize waste Maximize effort – Streamline your Business. Efficiency and effectiveness are key to survival at all points of the Business chain, (sourcing goods, marketing, finance, customer service and people).  Embrace innovation and technology in this pursuit. Importantly, involve everyone in looking to achieve these outcomes to be part of the solution. It's a team effort! 

5. Lead with strong Leadership – it's not easy to lead during uncertain and volatile times. It takes critical skills to analyse and develop strategies to keep the Business going. Applying techniques, such as, leading by example, being steadfast, reliable, and providing direction with clear open communication. Importantly, empathizing, supporting staff concerned about their future. Be the leader they expect and want. 

6. Tackling Uncertainty – How well you, your Business function or prosper in uncertain times will be influenced by how well you lead, the strategies and decisions you make, the support you receive and the culture you create.  Be strong, stay calm and seek expert advice when needed.

7. Adopt best Business practices – cashflow, how it ebbs and flows is key to any Business survival and is critical in preparing your Business for uncertainty. This is where Blackburn Accounting can help. We offer a range of services including; Cashflow Management, Business Development and Family Business Management. Contact us today to start your planning. 

Takeaway:  

Focus on flexibility, risk management and clear communication, be customer-focused while embracing innovation.