Uncertain times need flexible plans

Business Finance Services

1st February 2019

Economic Advice & Solutions

Business Finance Services

By Peter Douglas

Business Finance Services Ltd

SO! You have a business and you want it to grow and prosper! The first question to ask is 'Are you up to date and happy with your financial planning?'

A successful business can't be run without proper financial planning. This is even truer when one takes into account the uncertain times that we are living through at the moment. Who knows how this will end up as far as industry and our economy is concerned? So many small businesses hit problems because they do not focus on seeking and reacting to solid financial data. The problem is that, at the moment, there is little if any firm data on where we will be as an economy in six months let alone six years' time.

So how do you plan in these circumstances? The answer is 'with difficulty', but you should still do it. Careful planning must be a priority. So, talk to as many experts as possible. Firstly talk to your accountants, assuming you have one. Then talk to other bodies such as the CBI, the banks, the FSB, maybe the IoD and your local Chamber of Commerce. Based on recent performance, however, I would personally draw the line at talking to your MP!

As far as the plan itself is concerned, in view of the current economic uncertainty, it would probably be advisable to incorporate several contingencies to allow for different outcomes.

Producing a sound financial plan is, however, only the beginning. That plan needs to be carefully monitored against actual performance. As has been said many times before, there is no point in devising a plan for the business if you do not follow it and, more importantly, take corrective action when the plan is deviated from. What's more this should be done on a regular basis. Leaving corrective measures until they are too late can lead to disaster.

Should your planning indicate that the business needs finance, ensure you seek an expert in this field such as Business Finance Services Ltd. This can save you both time and money. We are not accountants, but we do write business plans. Just call us on 0800 093 5240 or email to enquiries@bufinserv.co.uk for a free consultation. We look forward to hearing from you.