No-one really knows what the next few months will bring. Common sense suggests the current global pandemic is likely to create more challenges for many, while generating “best ever” results for others – it will depend to a very large extent on the sector you happen to operate within.
Pure luck perhaps. And what can you do about that? Well, you can start by taking steps to prepare and protect yourself and your business in the best possible way.
Our number one tip? Make forecasting your friend. The importance of cashflow forecasting can never be over-estimated, but it’s absolutely essential during uncertain times.
Keeping your fingers on the numbers will give you more confidence and peace of mind.
The importance of forecasting
Successful business owners are always looking ahead. That’s because it’s the only way to make the best-informed decisions.
Whatever the business you run or the sector you operate within, our advice is that you need to always be looking at least three months ahead – and never
has it been so important.
But good forecasting is an equal mix of science and art, no-one knows what the short-term future holds, so having fixed plans and budgets produced and in place for the next 12 months isn’t always practical.
Instead, we recommend you get some peace of mind by scenario planning. Explore different probabilities and scenarios and then make your decisions accordingly. You’ll sleep better at night once you’ve looked at the right numbers and have a better idea of the best possible plan of action.
To help get you started download our simple 13-week cash flow forecast template and scenario planning template. And don’t forget we’re always here to help.
As part of our pledge to support business owners throughout the current challenging conditions, we’re offering free Financial Health Checks – an informal, and completely confidential session with one of our experts to help you take stock and look to the future.
Find out more and book a health check, visit www.yourrighthand.co.uk
Alternatively call us on 01252 820002 to book your session.