Small Businesses are under threat
Through the Covid crisis of 2020 to 2022, small business owners had their income streams reduced while their overheads remained relatively constant.
Now, in 2022, because of the Russian invasion of Ukraine inflation is heading inexorably towards double figures.
Heating costs are going up, fuel prices are going up and food prices are on the rise too.
The result is small businesses are coming under even more financial pressure.
What’s to be done?
The obvious answer is to win more business and reduce costs.
However, whilst doing that you need to work to a plan using your cash flow and P&L forecasts.
Since starting BHT Marketing Ltd we have studiously updated our forecasts every Monday, bar Bank Holidays.
We know who has paid and who has not.
What has gone out of the account is reconciled.
Our forecast is based on reasonable assumptions.
Planning is now more important
To know what’s going to happen you need to have a good understanding of your future.
As Covid hit one of the BHT income streams dried up completely.
So, my wife, Christine, and I poured over our cash-flow forecasts to see what had to be done.
We put a plan in place and implemented it.
The result is that we survived.
Now we can do it all over again to face this current crisis.
You’re not alone
Everyone is in the same boat.
However, it is important that you react to the situation in a positive way based on “reasonable data”.
I say “reasonable data” because apart from your outgoings the income line is bound to have forecast assumptions in it.
So you need to feel “comfortable” with your assumptions, weighing up the odds, as it were.
If you are having difficulty accessing a “reasonable” cash-flow forecast give me a call at 0808-172-1900 and I can talk you through setting up your system.
The Last thought
I have a motto that I would recommend to anyone during this difficult time, and it is
“There is always a solution, you just have to find it”