Cash flow planning in these uncertain times may appear difficult but there are some practical steps you can take to minimise potential disruption to your business: Review your budget and set realistic and achievable targets for the remainder of your financial year.
Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
Consider the impact of rising inflation on your margins, your contracts and input costs. Re do your projections once you have factored in inflationary impacts.
- Review your budget (see main piece) and set realistic and achievable targets for the remainder of your financial year.
- Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
- Consider the impact of rising inflation on your margins, your contracts and input costs. Re do your projections once you have factored in inflationary impacts.
- Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step and review your costs in each area.
- Put extra effort into making sure your relationships with your customers are solid.
- Review your list of products and services and eliminate those that are unprofitable or not core products/services.
- Pull everyone together and explain the business strategy and get their buy-in.
Read more for tips for reviewing your budget.