FINANCE
BY EDDI TAYLOR , PARTNER AT AZETS eddi . taylor @ azets . co . uk
Is your current business model fit for the future ?
A ROBUST BUSINESS MODEL CAN HELP BUSINESSES KEEP ON TRACK AND MOVE FORWARD TOWARDS THEIR STRATEGIC AIMS AND OBJECTIVES . THE LAST COUPLE OF YEARS FOR MOST BUSINESSES HAVE THROWN MANY BUSINESS MODELS AND PLANS INTO DISARRAY , SO IT ’ S MORE IMPORTANT NOW THAN EVER BEFORE TO ENSURE THAT NOT ONLY DO YOU CREATE A CLEAR AND CONCISE PLAN , BUT THAT YOU HAVE THE ABILITY TO ADAPT AND ADJUST IT AS DIFFERENT HURDLES ARE PUT IN YOUR WAY .
Now , where and how framework
The now , where and how framework is very simple and can be incredibly effective if used right . It can be used when preparing and reviewing a business plan , acting as a roadmap for where businesses are headed .
As part of any growth and management process , businesses need to first focus on where they are now . This puts a peg in the ground and allows for monitoring of improvement . We need to compile a list of where we are now in our key business drivers , but also need to identify the key issues , challenges , concerns , strengths and opportunities that we are faced with .
From here , the temptation is to dive straight into trying to fix the issues straight away , however it is crucial to first focus on the future and where we want the business to be within a certain period of time .
Once it ’ s understood where the business is now and where it wants to be , the path will start to appear as to how to get there and the changes and strategies that need to be implemented to achieve those goals .
Reviewing and implementing
Creating your business plan is important , but creating it alone is not enough . We need to ensure we have the tools and strategies in place to ensure the plan is implemented . Business models should be constantly and regularly reviewed to ensure they remain relevant , and to ensure we are moving from along the road from the now to the where .
In a rapidly changing business world , in order to implement our plans , we need to ensure we are adaptable and resilient . How well do you react to change ? How well do you react when something bad happens ?
Scenario planning
An effective business model will stress test the business with scenarios that could impact the business and actions to take to ensure the business is resilient and can adapt and remain financially viable in all different situations .
Scenario planning should run alongside the overall business model and be a key focus when reviewing . Understanding what options are at varying levels of impact can help a business remain resilient and reduce the chance of a firefighting approach should worst case what-if scenarios become reality . Businesses who have taken this approach may have fared better in recent times , arming them with clear strategies when faced with the many uncertainties brought to us by the global pandemic .
At Azets , we have found scenario planning extremely effective for our clients over the last 18 months . Our team of trusted business advisors can work with you to review your business and structure and renew your business plan to help mitigate risks and maximise opportunities . To discuss how to ensure your business model is fit for the future , please get in touch .
Local offices : Ashford : 01233 629 255 / Canterbury : 01227 454 861 Maidstone : 01622 690 666 / Orpington : 01689 827 505 Sandwich : 01304 249 997
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