“Fail to Plan…Plan to Fail”
You will have probably heard the mantra, “Fail to Plan…Plan to Fail”.
In a twist of fate, it is very likely that you now have some time to plan and you must use it! You won’t feel like it, but this is potentially a once in a lifetime opportunity to stand back, reset your business going forward and make it ultimately leaner, meaner and more profitable. Seize this moment to transform your business.
Now’s the chance to ask:
• “Why regrow a business with those unprofitable product lines or services?”
• “Why continue to use old ways of working, if they don’t apply to our new future?”
• “We have always supplied this, and we have always done it this way. Isn’t it time to create your new normal?”
Planning is key to answering these questions.
Here are some planning suggestions to keep you on the right track:
“Cash Survival” Plan and Actions
Cash is King! The cash survival plan is about knowing exactly where you are – always! Make a rolling 3-monthly cash flow plan, by week, reassessed every Monday morning.
This must have opening bank cash position and reflect actual debtor and creditor positions. Your accountant should be able to help you with this. Here is a non-exhaustive checklist of cash flow items and actions critical to be included at this stage of the planning process.
