Accountants in Belfast share top tips on how to take control of your business!
We were finally getting over the financial crisis when Covid struck. Then, in the trough of the worst economic downturn in 300 years, we discovered that recovery was driving the Financial Times Stock Exchange (FTSE) to new heights and the job market into a frenzy. In the wake of that, it became clear that the recovery was overheating and that we were facing a period of rising inflation and industrial action. It’s clear as Belfast accountants, businesses need to take action.
Russia’s war in Ukraine made things worse. It has not only meant human suffering, but it has also affected the entire global economy, driving up the cost of food and energy. It adds to the hardship for those on a low income and means serious food security risks in the world’s poorest economies.
The economy has always had its ups and downs, but its resemblance to a roller coaster is currently more marked than ever with the news of Prime Minister Boris Johnson’s resignation and the race for his successor.
Businesses of every size face challenges that are now suppressing growth. A business might have a great product or service, but without a strategic plan to help it define, articulate and communicate where it is going, it will be at the mercy of outside events. As accountants in Belfast, we encourage our clients to take some time to think long-term about their business and to establish goals or targets that you can control.
A plan starts with identifying and accessing opportunities within your market and should address how your business is going to evolve to meet the challenges of today and the future. The plan gives your business purpose and it answers questions about your long-term goals.
The first step is to look at five important areas:
- Think long term – invest time in understanding where the market is going and what this means for your customers. Short-term decisions do not help grow a business. Think about the latest innovations in your area and how they could further enhance your business.
- Having a good value proposition is essential – this states the relevance of your product or service, what it does and why customers need it. What is yours?
- Expand your reach – what is your target customer and what do you need to do to let them know you exist and that your product or service is relevant to them?
- Growth means new people, systems and (maybe) different ways of doing things. Grow at a pace you can manage. The help to grow digital initiative is a great way to access additional financial support. You can find out more information on this government initiative here: https://www.learn-to-grow-your-business.service.gov.uk/
- How will your marketing communicate your value proposition and how is it relevant to your customers?
Once you have taken some time to write out your plan and where you want your business to be in (say) 2 years, the next step is to work out a marketing programme with actions to make it happen.
If you are concerned about future trading conditions, then take some time to reflect on where you are and what could happen in the next few months. It is important for all businesses to plan ahead for a range of scenarios.
Cash flow forecasting
Cash flow and business planning in these uncertain times may appear problematic, as Belfast accountants we are aware of these pressures. There are some practical steps you can take to minimise potential disruption to your business:
- Review your budgets and set realistic and achievable targets for the remainder of 2022 and into 2023;
- Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues;
- Review and flow chart the main processes in your business (e.g. sales processing, order fulfilment, shipping, etc.) and challenge the need for each step;
- Put extra effort into making sure your relationships with your customers are solid; and
- Review your list of products and services and eliminate those that are unprofitable or not core products/services.
As Belfast accountants we specialise in helping our clients manage their cash flow. We do this by preparing and updating detailed cash flow forecasts using the latest and most powerful software. We can also help you negotiate or renegotiate overdraft facilities and find specific funding to help you grow!
We specialise in helping our clients manage their businesses. We do this by preparing and updating detailed forecasts, using the latest and most powerful software.
Please talk to us about cash flow planning for the next few months. As accountants in Belfast, we can offer a template so you can do this yourself or work together to produce estimates for a variety of scenarios and help you take control of your business. To keep up-to-date with our latest articles, please visit our news page : http://rossboyd.co.uk/category/news/