In the News
IMPORTANCE OF FINANCIAL PLANNING IN TIMES OF ECONOMIC UNCERTAINTY
Unless you have been living on the moon for the past twelve months, you’ll be well aware that we are currently living amid a very difficult economic climate.The equity within our homes has fallen dramatically, the availability of finance has dried up significantly and yet consumer prices are on the up. The outcome of all this is that a large proportion of the UK population is, or at least perceives itself to be, worse off.
This affects businesses in many ways:
§ Demand for goods and services is falling which leads to a reduction in output;
§ Cost of production may be increasing and thus reducing profits;
§ Increased strains on working capital position as a result of a reduction in readily available finance and a shortening in credit terms from suppliers;
§ Susceptibility to foreign exchange losses for those businesses with overseas transactions as a result of the weakening pound;
§ Increase in the number of bad and doubtful debts;
§ Generally lower morale within the workplace as employees face the plight of possible redundancy.
Not all is doom and gloom though! Providing your business gets the right support it could do more than simply ‘weather the storm’ and perhaps benefit from increasing its market share by capitalising on the above failures of its competitors.
Our dedicated team of professionals have formed good working relationships with various local financiers who are as keen as we are to help businesses in need of support. Specifically we understand the need to help businesses plan for the uncertainties ahead by working closely with them in the development of business plans and cashflow forecasts.
We believe that it is essential for businesses to formulate such forecasts to:
§ Help focus their strategy over the coming months;
§ Recognise the working capital requirements over the next twelve months and aid in the application for an extension / increase in current bank finance arrangements if considered necessary;
§ Recognise and act upon inefficiencies within the business.
Fortunately for our clients, we have a wealth of experience in this area and our dedicated team is always on hand to provide the best advice. We would be equally happy to hear from any businesses that are not currently a client of Warings and would stress to any business, large or small, the importance of obtaining appropriate advice in these challenging times.
If anyone would like more information or would like to discuss the above matters, please contact Mark Wolfe, Business Solutions Manager, at MarkWolfe@warings.co.uk
27th March 2009