A recent survey by the Federation of Small Business (FSB) states that almost 50% of their businesses will face stagnation in growth due rising costs of operation. As a business you need to review your risks and your small business strategy.
Against the background of soaring inflation, the war in Ukraine, global supply chain problems, cost of living crisis, problems finding the right workers, the list could go on. All these problems can make it is easy to lose focus. But during uncertain times to move forward it is important you remember staying positive as a business owner is paramount.
Your team will be looking to you for leadership and guidance. At the same time, you will need support and that is where we can help. If you are concerned about your business continuity, please call us.
It is worthwhile to revisit your business plan just to make sure you are still on the right track.
Why are Business Plans important
Revisiting your goals is a good place to start.
A business plan is an essential tool, whether it is for raising finance or for putting your objectives into writing. In either event, a business plan will give you some form of direction and help you set goals, and most importantly, enable you to monitor your success!
Business plans should be as clear as possible, and since brevity aids clarity, they should also be as short as possible. A useful way of achieving this without losing any important points is to stratify the plan by confirming all details, where possible, to an appendix, leaving only the overall message in the body of the document. This will enable the reader to master the basic points of the proposal more quickly.
We have considerable experience in helping clients write plans, forecasting results and monitoring their success against goals. We would be delighted to help you and we also have access to a range of finance providers and can help your business succeed!
Smaller firms struggle to get finance
The same study by FSB shows lending to small businesses has hit an all-time low. New findings from the quarterly Small Business Index (SBI) show successful finance applications plummeting to lowest level on record.
The FSB warns that banks “pulling up the drawbridge” to small firms will further stifle economic growth. Fewer than one in ten (9%) small firms applied for finance in Q1 2022, the lowest proportion since SBI records began.
The share that saw applications approved (43%) is also at a record low. Of the few firms that did manage to secure finance, four in ten (42%) plan to use credit to manage cashflow, considerably more than the numbers planning to use funds for equipment updates (21%), expansion (19%) or recruitment (4%).
Please talk to us if you need finance – we can help!
Can we also remind you that the Recovery Loan Scheme which is the government backed scheme is ending soon.
The Scheme is to help businesses of any size access loans and other kinds of finance so they can recover after the pandemic and transition period. The Recovery Loan Scheme will accept applications until 30 June 2022.
Keeping your bookwork and records up to date
As you are in business you know the importance of keeping good accounting records. Hopefully what you should also appreciate is that your accounting system should also be able to generate some reports including Profit and Loss account, your Balance Sheet, and a Cash-Flow statement.
Without an accurate bookkeeping system which gives you the basic reports, you will be making decisions over the coming months based on either instinct or using a supplementary system.
The current economic conditions have not been experienced for 40 years so using your business acumen and instinct may not work well on its own. What’s more using a supplementary system such as a notebook or spreadsheet means you are running two systems and possibly wasting time.
If you are not already on the cloud, please take the opportunity now. You may also receive a government grant to help you on your way. Have a look at what business finance support is available.
We are here to help you. If you want to discuss any items in this blog, you can call or email normal manager.
And if you are not working with us yet have a look at how we work. You can also read about what to look for in your new accountant here.