In uncertain times, it always pays to be prepared. But our recent SME survey revealed that almost two-thirds (62.3%) of business owners have failed to re-forecast their business performance over the coming months as they continue to implement measures to adapt to Covid-19 trading conditions.
This is a staggering percentage, given the general levels of uncertainty around what the future may hold.
Forecasting or scenario planning and risk mitigation are intrinsically linked. And it will always pay to keep one eye firmly on what the future might hold when you’re dealing with the demands of running a business during a global pandemic.
Smart business owners keep a watchful eye on their numbers at all times. Not least because it gives them an early warning system that’s built-in and which quickly alerts them to any potential problems that require deeper investigation.
Is every aspect of your business efficient and effective?
The one thing we’re all able to do at the moment – regardless of which sector we happen to operate within – is to ensure that every aspect of our business is performing as efficiently and as effectively as it can be.
This is a particularly challenging and volatile time to be running a company. But you can access some great financial tools that will help you – in good times and bad – to optimise your profits and your cashflow.
Look beneath the surface and identify your levers
With the right management information at your fingertips, it can be relatively easy to optimise your profits and your cashflow from what you already have, rather than spending more filling up the top of the sales funnel to grow profit.
How so? Because there’s a high chance you’re leaking profits and opportunities from areas that aren’t performing as well as they could. Use your financial information to quickly identify those areas, and you can take swift action to improve results – if you know which levers to press.
The obvious solution might not be the best option
When you start looking underneath the surface of your key numbers and really digging down into the data, you’ll start to realise what’s really happening in your business on a day-by-day, week-by-week basis – and where you have the opportunity to optimise every area of your operations.
But bear in mind that you might have to look beyond the obvious numbers to find the best way forward…
Watch this short video to see a real life example of how we applied this thinking to press some simple levers in a client’s business a couple of years ago – with significant results:
Do your accounting people provide you with the kind of intelligence that helps you make more money and spend less – or do they just tell you what happened yesterday? If you’re only getting the latter, then we should probably talk.