The Bank of England has announced that it predicts 13% inflation and a long recession. This is the biggest increase that we will have seen in almost 30 years!

Unfortunately, this is going to impact everyone, and despite the past few years having been difficult for us all with covid, fuel and energy increases have also caused us all to tighten our belts. Now we need to do it just that little bit more, but we will get through this as long as businesses take the appropriate precautions. Therefore it is important to plan ahead for your business.

Preparing your business for the months to come and making it resilient to the times ahead.

Businesses know what it’s like to have to make big and hard decisions after the pandemic, and now we need to be prepared to dig deep and do it again. Begin by stress testing your business model, as you will need to consider what sacrifices you may need to make and strike off what is not working for your business.

Knowing your Figures

It’s imperative you act now, as understanding where you are as a business is of utmost importance, ensuring your finances are as up to date as possible. Knowing your business figures will help you make business altering decisions. You can do this by forecasting for various scenarios and getting to grips with what your cashflow is like.

You can have a very profitable business but in times like these, customers may have problems in paying, so your cash flow will be affected. Work out how long your cash buffer is going to last.

Lending

Lending is soon going to become harder to obtain, so we advise that if you were planning on looking at financing options for your business in the next few months, you may want to consider looking at that sooner rather than later to avoid difficulties.

What is the right decision for you?

It’s important to make the right decisions for your business, as this will be a time where you need to review your team, technology, and processes to see what is letting you down.

However, it’s not all doom and gloom, there are so many businesses that can thrive during a recession, so it’s essential you’re prepared to do exactly that.

Abbey Accountants are here to provide you with advice for your business in these difficult times, call us now to book in for your meeting on 01992 642024.