COVID-19: Master your Finances in your Business
The Coronavirus has changed the norm we are used to. For entrepreneurs, it can either be a good and a bad thing for your business. Regardless, every business will be affected and everyone will have to deal with it during this time.
As a fellow business, we understood the seriousness of this pandemic. This is why we created a step by step guide for business owners to thrive. We have already published the first step which is to Get lean and follow the second step which is to Make Remote Working Effective. Please make sure to read them.
As for the third step, you have to master your finances.This is an important time to ensure you have the visibility you need to make key strategic decisions.
The importance of a financial plan:
In my opinion a businesses strategy and tactics should be driven by the financial map (planned route to destination) and actual performance review. For example if you have a financial plan that says you would like to maintain sales revenue levels over the Coronavirus period, you can then put numbers against the likely lost revenue to get a target for newly acquired customers.
Next to this target you can note what the strategy is to achieve it, and what tactical actions each day, week, month will be completed.
Then you can track each day, week, month, your actual progress towards that goal and with real clarity and adjust the tactics to settle on something that works.
Success in business isn’t about doing the same thing over and over again, it’s about trying new things constantly until you find what works. You won’t know what works unless you are measuring progress.
You must have the right financial systems to achieve this:
It’s going to be much harder and more time consuming to achieve this with an offline accounting system (but not impossible). If you have online accounting you can construct a financial plan, add on a reporting tool and setup automatic reports to track progress. You can also link up an online cash flow forecasting tool to see with ultimate clarity what the likely in and out flows of cash are over the coming days, weeks and months.
If you have this system you are unlikely to fail due to lack of cash, we can spot the gaps ahead of time, apply for funding with the right information already to hand to provide to lenders and know exactly how much we need, for how long and for what purpose.
- Receipt Bank for receipts
- Reporting tool like Fathom
- Cash flow forecasting tool like Float
Mastering your finances in times of pandemic crisis is integral to your business. This is the third step for your business to survive. The next step is to improve your cash flow and set up a cash flow forecast.
There are 4 ways we can help you and your business now:
If you have been affected by COVID-19 in any way at all, book an advice call here. No sales pitch, no cost – just help.
As you continue to navigate this uncertain economic environment and the government loan application process, remember that you have experts on your side. Get Simon’s Business Owner Survival Kit to simplify and expedite your path to successfully securing your funds. Get Your Toolkit Here
Access a webinar recording of Simon and Tony Robbins from last week. This strategic, tactical and timely discussion could mean the difference between a business that survives and thrives, and one that doesn’t. Watch Here
Keep up to date with all the information on COVID-19 in our resource hub here, which is being updated daily with any new information as and when it is released.