A crisis is characterized by its surprise effect. The implementation of a business continuity plan, therefore, makes it possible to plan the measures to be taken in an emergency (work accident, natural disaster, supply cut, etc.)
The objective of this plan is to ensure the maintenance of essential functions and services, making it possible to minimize the impact on your activities, your customers, your employees, and the sustainability of your business.
As most SMEs do not have a plan, the health crisis has hit full force, pushing entrepreneurs to manage the blows one at a time in “reactive” mode. Would you be ready tomorrow morning to deal with a fire, a negative viral video on your product, or even an IT problem crippling your operations? What if suddenly you can’t be in charge, how will your business be? Will your current strategies be effective when the time comes? Have you tested them?
During the second year of the pandemic, the implementation of a risk management tool is a priority. Thinking with Business Setup Advisory in Delhi about potential situations that may arise in your business and strategies to protect yourself is a proactive step that will allow you to establish a solid foundation for your business plan.
EARN THE TRUST OF YOUR BANKER
Although all businesses should maintain and update annual financial forecasts, including a cash budget, many neglect this exercise and underestimate its importance to financial partners.
Without financial forecasting, it becomes difficult to forecast cash flow and your financing needs. The lack of visibility into the future harms the sound management of your business, in addition to complicating the management of incidents, such as the loss of a major customer, major changes in the terms of supplier payments, delivery delays causing payment delays, etc.
A global health crisis as we are currently experiencing generates instability in the day-to-day activities of SMEs. Thus, forecasting is essential. Indeed, by showing that you control your liquidity, you will gain the confidence of your banker, or other financial partners. By providing quality information (also remember to provide your monthly financial statements on time!), you will develop a relationship based on transparency that can facilitate access to financing thanks to increased confidence in your financials.
Additionally, whether you are experiencing a pandemic-generated “growth crisis”, forecasting may save you cash flow problems or even the need for recovery. Indeed, when a business grows intensively without having the right tools in place, all the key data ends up in the mind of the entrepreneur. Over time, it becomes difficult to control cash flow, and to have a clear short, medium, and long-term vision, thus affecting the bond of trust with your banker.
In short, financial forecasts are an essential management tool. Whether it is to set them up, revise them or optimize them, your business advisor is there to support you.
IN SUMMARY
Consulting Top Business Consulting Firms in India is giving yourself a moment of reflection that will lead you to be even more strategic, prepared, and structured to face a new reality that overhangs the business world.
Your advisor can also help you navigate the various grants available to SMEs by finding the subtleties that will allow you to maximize them. Did you know you might qualify without even knowing it?
At CAC, your business advisor, works in close collaboration with multidisciplinary experts, thus offering you complete support for all your company’s strategic positions.