How to build business resilience in 7 steps
Are you prepared to face the financial pressures on the horizon? According to the Office for National Statistics (ONS), a quarter of business owners are not sure about the state of their finances. If you’re not ready, you’re increasing the risk.
Having a firm grasp of financial position and accurate cash flow projections will be critical for business survival while navigating through the stages of the pandemic.
Check our handy guide below:
- Get the numbers right – Regular cash flow projections will help spot the gaps, adapt to changing circumstances and review the outgoings.
- Stress-test your finances -Will late payments, customer/client failure affect the business model? What’s the current ratio of assets to liabilities? Is slow-moving stock affecting liquidity?
- Negotiate now and keep the communication open with the landlords, creditors, and suppliers. It will be vital in maintaining business relationships.
- Review employment contracts regularly – Did the pandemic change the ways of working, shift patterns, schedules or scope of work?
- Check your financial support eligibility – Perhaps an obvious point, but currently, 1.2m self-employed eligible for income support have not claimed it yet.
- Review the insurance clauses– Especially if you decide to take out a loan that requires a personal guarantee. How is the risk mitigated?
- Seek advice early – If your business is facing financial challenges, or you are not sure about your options, seeking professional advice may be vital for the business future. It will enable you to make an informed decision and help with contingency planning.
With business distress accelerating on an unprecedented scale, it’s crucial for the UK economy to escape any unnecessary insolvencies. In many cases, business turnaround or restructure options are available to get businesses back on their feet.
Our business turnaround and insolvency specialists are on hand to provide advice and assistance during these difficult times.
Have a question? Call us for a free chat on ️0800 118 2948.
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