This has been an unprecedented year for businesses across the UK. From Manchester to Maidenhead, Brighton to Belfast, UK businesses have struggled to make ends meet as they’ve experienced a huge decline in footfall, plus a trend of lower consumer spending, over the course of the past few months. With the final quarter of 2020 now upon us, and 2021 just around the corner, this is an opportunity for firms to turn over a new page, and to begin making smart financial decisions that’ll help their long-term survival. Here’s how you can do just that.
New Modelling
No company can go by their old financial and sales modelling in the winter of this year. The old rulebooks have been cast aside, and consumers are far more difficult to predict at present than at any time in recent history. This means that you’re not going to be able to draw up a reliable forecast of how much cash you’re likely to earn this winter. You should instead draw up several – and continue to check your actual performance against these scenarios.
Over time, you’ll realise that one of your models is best-suited to the current climate, and you’ll use this model to base your investments and spending upon for the coming months. Use your finance team wisely in the coming weeks and months so that their wisdom helps you predict cashflow issues down the line.
Bring in Consultants
This is where you’ll see a huge benefit for your firm. As you’ll know, consultants are all about talking with different clients about their businesses, and finding ways in which they can give firms a shot in the arm. This is the same case for finance specialists who will take a long hard look at your financial figures, and will be able to give you a prognosis for your firm.
If it looks like you’re going to have to save cash in the coming months, they’ll advise you to cut your overheads. If they believe that you can make a good amount of cash over the festive period, they’ll advise that you invest in marketing and sales. Use consultants wisely to plan your path out of the pandemic.
Sales Drives
As the final quarter of 2020 is an important one for businesses who’ve seen their sales figures decline since March, this is a time to clear out your 2020 stock and to try to gain as many sales as possible around your brand. Of course, this means putting on sales, or investing heavily in sales teams and your marketing arm.
Added together, a sales boost will give you a welcome peak of activity and cashflow just as we enter the deepest part of winter – which means that your company will be able to carry profits into 2021, which for many businesses will feel like a new bite of the apple, and a corner turned in the financial and business battle against the ongoing pandemic.
Use these three simple tips to boost your company’s performance, and balance your books by the end of 2020.
