5 uncertainties business owners face: are you forecasting change?
The uncertainty of the economy and unstable markets has placed many business owners in a difficult position. It's hard to know what will happen and how you can prepare for it, which is why we've compiled this list of uncertainties that all entrepreneurs face. If you're uncertain about what your next steps should be, take a look at these five things that may help shape your decision-making process going forward.
1. Unstable markets make your predictions of your cash position harder from your cash flow statement
While we have no idea what any government will throw at us next, it’s essential to not only keep an eye on news sources but to react to the information you’re absorbing as opposed to just the long term.
What will this mean for companies? What is the worst case? Are your customers affected by the change? Will it impact staff? The covid 19 pandemic we're currently facing is a prime example of this.
A quick way of keeping up with all of these changes and alterations is to build the news into your routine and make sure you’re reading across multiple channels from global sources to industry opinion pieces.
2. Maintaining your cash position
We’re aware that this isn’t always the simplest of tasks. If you find a high percentage of your sales are on credit, there’s a greater risk of your amount of cash flow suffering.
Keep a handle on your financial incomings and outgoings with Futrli. If you’re able to play out scenarios in your head for your business but aren’t sure you can afford to make them happen, have a look at our Scenarios section. Input your own data with real-time predictions, giving you confidence in each decision you make, therefore more control over where your money is actually going.
A good example here is if there was a chance of an economic downturn. If you’ve played out some possible outcomes for this before it happens you’ll be able to use what you’ve learnt to protect your business. Be it investing or finding an investor, amping up stock or cutting it back, you can act now and pivot your business before external factors prevent you from making your own choices.
3. The upward trajectory of technology
While it’s exciting for most, the near-constant upgrades to our devices and software can make for an intimidating change for some. Your product may be as good as it can be for now, but keep track of advancements in your industry and apply them when you’re able.
Considering (and planning for) multiple eventualities will not only help you feel prepared for what’s next, it’ll force you to look at the bigger picture, and therefore understand the direction your business is taking.
If you’re not in the cloud for your accounting and financial planning already, just do it. Forecasting is easy when you’re using Futrli and, quite frankly, if it isn’t easy, it won’t get done. You’ll find a company with the ability to forecast their next moves will execute them confidently.
4. The unknown
Will your manager quit tomorrow? Will your supplier demand payment before the week’s out? Forecasting is such a fundamental part of effectively running your business regardless of the unknowns. If you look up and ahead by forecasting, it will show you where you want your business to be and follow through with the best plan.
Change is always around the corner and when it comes knocking, you’ll need to look at the financial implications first. If you don’t know where you stand, your team will notice. As a strong leading force in the business, you need to figure out where you are so you can make adjustments to your forecast.
If you’re confident in your financial standing, this could be the right time to branch out – or conversely, economise and save your pennies. Identifying and utilising opportunities is where your focus must lie, and the all in one functionality of Futrli will save you precious time to do so, as it takes mere seconds to explore different scenarios across your P&L, Balance Sheet and Cashflow Statement.
5. Great businesses, no recognition
The age-old conundrum of how to get your name out there. Marketing is a key part of how some businesses grow, be it adverts, social media or organically introducing your connections to your service. But it’s not the only way.
Networking is a sometimes fun, usually solid way to get to know who is who in your immediate area. Going to local networking events will enable you to meet the competition (don’t write them off, they could be key collaborators in the future) and help you communicate what you’re all about.
Building great partnerships with people on the same journey as you is fundamental. You’ll be able to share ideas, knowledge, and even customers. Perhaps you’ll befriend your next manager or business partner over your lukewarm coffees… get out there, collaboration beats struggling alone.