Business Mastermind PodcastPreparing Your Business For a Storm
The Impact of Political and Economic Uncertainty on Your Business
There are a number of indicators that we are at the top of the economic cycle.
Many observers are expecting the economy of the UK to be flat over 2019 and others are expecting that beyond 2019 there will be a decline and slowing down of the economy.
As a result of the political situation business owners are holding back from investing as they wait to see what is going to happen.
In this episode, Gavin shares his expertise and provides pertinent and practical steps that you can take to build cash reserves forward and go lean with your business.
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KEY TAKEAWAYS
- With a world of uncertainty as business owners what we want is more certainty.
- Building cash reserves is very important for any business.
- Lots of business owners only manage their business by the amount of cash they currently have.
- They do not necessarily have robust cash flow forecasts about what the situation will be in 3, 6 12 months and beyond.
- If you have a cash flow forecast you are projecting and planning your cash flow and are able to plan for additional funding at points when it may be required.
- Having a scenario plan is key to understanding the possible impact different business opportunities will bring and the effect on your cash flow.
- If there is an economic slow-down you want to ensure you can survive it and have enough cash flow.
- Alongside building your cash reserves you can ‘go lean’
- When a company is growing and scaling it can often be running with staff and resources that in the long term it will not require.
- By going through the details of every area and aspect of your business you can identify changes that will help you to optimise the efficiency of the money you spend.
- Ask yourself, do we really need it, if we no longer had this would it be detrimental to the business? Is there a cheaper alternative?
- The aim of the exercise is to cut costs in order to survive.
- If you cut back too far the business will not be able to survive so it’s vital to keep your view on recovery.
- There has to be an equal balance between cost efficiency and developing new sales and customers.
- In times of uncertainty controlling the aspects of business that we can such as cash flow provide you with the most certainty and the best opportunity to be able to respond positively to a situation.
BEST MOMENTS
‘There are a number of indicators that we are at the top of the economic cycle’
‘Cash is the life blood of a business’
‘It’s like your own personal insurance’
‘Everybody is going to survive, and it will be ok’
VALUABLE RESOURCES
Built to Last book by Jim Collins
ABOUT THE HOST
Gavin Preston
Gavin is an inspirational Speaker, Business Strategist, Business Growth Mentor, Trainer and high-performance Coach. He works with Business Owners and Entrepreneurs and has a strong track record in creating creative strategies to accelerate the growth of their business. He has helped hundreds of SME business owners and leaders improve their performance and that of their business and a comparable number of executives and employees in blue-chip corporates over the last 20 years.
Gavin’s energetic, insightful and yet down to earth and practical talks, workshops and coaching is in demand with high growth business between £250,000 and £30 million revenue and with multi-national organisations at all levels from Board to frontline Managers. He is an expert in Business Growth Strategies, Peak Performance Mindset, Persuasion & Engagement, Marketing, Productivity, Leadership Development, Team Development & Motivation, Leading Change, Stakeholder Management, Personal Effectiveness and Behavioural Change.
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