BUSINESS RESILIENCE
BUILDING BUSINESS RESILIENCE IN THE FACE OF UNCERTAINTY
In a fast-moving world , the business landscape can change in the blink of an eye . In recent years we ’ ve seen how conflicts around the globe can directly impact businesses of all shapes and sizes , whether through energy prices , shipping costs or exacerbating the impacts of inflation .
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Just last month we heard that the UK had slipped into a recession . Whilst in itself it might feel like just a label , the potential for it to affect business confidence cannot be understated .
Whether it ’ s another pandemic , changes
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in Government policy , further conflicts around the globe or technology meltdowns , external factors can hit at any moment – and businesses need to be prepared .
Preparing for the unexpected can help to give your business or organisation the best
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chance of weathering the next storm – and with a general election looming later this year , the certainty of uncertainty is a given .
There are multiple elements to consider in building resilience – cashflow , staffing , cyber security , law and contracts , disaster
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recovery , policy changes - which is why we have turned to experts based in our region to offer their opinions on what you can do now to ensure you ’ re still trading after the next storm . |
THE BIG PICTURE : COOL VENTURES
Recent years have posed significant challenges for small businesses , with the pandemic , the war in Ukraine , cost of living crisis and Brexit contributing to disruptions in supply chains , increased costs and reduced consumer spending .
In the South West alone , nearly 70,000 businesses closed between 2020 and 2022 ( source : ONS Business Demography data ). Our programmes are designed to help clients to be better equipped to withstand shocks and maintain continuity , hence helping to build business resilience .
We recommend implementing some key strategies to enhance your business resilience :
• Regularly review and adjust your business plans in response to changing economic conditions-maintaining effective financial management and controls
• Invest in digital transformation
• Foster a culture of adaptability and innovation-investing in employee training and wellbeing
No matter where you are in your business journey , do not underestimate the value of guidance from professional advisors or your local business support service which is commissioned or provided by your Local Authority or Growth Hub . These programmes often offer tailored and expert help as well as signposting to other specialist programmes and available grants or funding and can further fortify operations , helping you to navigate challenges more effectively .
Sue Marchant Managing Director Cool Ventures www . coolventures . co . uk
CASHFLOW : MILSTED LANGDON
Resilience is crucial for business success , especially during uncertain times . It involves various elements critical for survival and growth , with strong financial practices at its heart . These practices secure the necessary funds for covering expenses and future investments . From an accountant ' s viewpoint , four key considerations bolster business resilience :
1 . Cash is king : Prioritise forecasting and managing cash flow . Having a steady stream of income is essential to meeting your obligations and costs .
2 . Maintaining adequate reserves : While cash flow is important , businesses often underestimate the importance of liquidity . Having adequate reserves acts as a buffer during downturns .
3 . Diversification of revenue streams : Relying on a single revenue source , whether a product , service or client can be risky . Diversifying income ensures stability even if one stream encounters difficulties .
4 . Regular financial health checks : Frequent reviews of financial statements via management accounts help to identify trends and potential issues – allowing for early intervention .
It ' s important to use the tools available such as software and apps , to make sure you have accurate , real-time management information , from which you can make better informed decisions , that may impact on the business ' s finances .
Incorporating these strategies into your business model enhances resilience , ensuring your business not only survives but thrives .
Ian Lloyd Partner Milsted Langdon www . milstedlangdon . co . uk
LEGAL : THRINGS
Businesses have had a lot of practice in recent years in testing their resilience , first with Brexit , then Covid and now the ongoing financial crisis . We have developed some key areas where business owners can act now to ensure their businesses survive and thrive .
We always encourage clients to keep on top of their various contracts as this is vital to protecting key business assets whilst also giving flexibility to keep up with a changing economy . Making sure your supplier and customer terms are fit for purpose can help you take a robust position over late payments and avoid large or critical debts . The right agreements in place can also help avoid friction between business owners and partners , keeping the business running smoothly .
Our advice is to stay ahead of the curve to put your business in the right place to both benefit from opportunities as well as protect against trouble .
Ramona Derbyshire Partner in the Commercial Team and Head of Business Growth Thrings www . thrings . com
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