Future proof your business – scenario plan
Businesses have faced a multitude of battles during the Pandemic…keeping a steady eye on trading & performance, protecting their workforce and moving them from the office into a virtual world of working whilst at the same time addressing the needs of their customers, clients and stakeholders.
These challenges have brought into sharp focus the need for businesses to plan ahead and explore differing scenarios to ensure business survival. As the confidence of the business community increases in 2021 mainly as a result of the vaccine rollout programme, many businesses are looking towards the future with renewed positivity.
Business owners and management are keen to understand the impact of renegotiating their existing facilities or gaining additional finance/capital investment and how to make best use of those funds – do they invest in people, products, technology or property? Negotiating financial terms with your key stakeholders may still be tricky but the key is communicating a credible, robust strategy both in the short and long term.
Forecasts and financial modelling on an integrated best-efforts basis lie at the heart of this. Forecasts must be able to explore a variety of “what if” scenarios with a good degree of granularity. A forecast model that can run from your most recent set of management data (rather than just starting at historic reported accounts data) will certainly give you a more accurate understanding of the impact of decisions you are making.
Stress testing and sensitising these forecasts is also essential as it puts into sharp focus how a change in one variable, such as revenue or the loss of a major client or contract, can impact your business.
Whilst none of us have a crystal ball, we can plan for a range of outcomes. This will prepare us for the future and make our businesses more resilient.
If you wish to discuss forecasting and scenario planning any further, then please let us know.
Our contact details are:
07780 336956 Raemy Singh FCA
07780 336952 Delphine Paterson FCCA ACIB
Forward Financials supporting business for over 10 years