Growth is likely to be a challenge, but it is not impossible.
Coming into 2022, there was much optimism among business owners. Unfortunately, this optimism did not last long.
Several factors are now making things a lot more challenging for businesses. For example:
Global events are pushing up energy prices to astronomical levels.
Ongoing supply-chain issues are making it difficult to source raw materials.
A shortage of talent is causing problems for companies that are recruiting.
Covid is still around and continues to make trading more complex and challenging for some businesses and consumers.
Faced with these hurdles, your goals may seem attainable. But is this true? Growth is likely to be a challenge but not impossible.
How to meet your goals during a slowdown.
Moving forward during an economic recession is undoubtedly more of a challenge. But what’s needed is an updated plan with awareness of the significant external threats. Here are five steps to set you on the right path.
How realistic are your goals?
Look at the numbers and make a call on whether they still make sense in the current business market. If necessary, update your goals and make them challenging. But, importantly, make goals attainable when cash and resources are in short supply.
An understanding of your financial position
Now is the time to get the best possible understanding of your financial position. Take a deep dive into your finances and see how you’re tracking against your budgets and targets. How is your cash flow looking? Do you have enough working capital to fund your growth? If additional funding is needed, where could it come from?
The right people in the right seats
Do you have the right team in place? Whatever your key goals, you need talented people on board who share your core aims for the business. Consider whether you have the unit you need or if there’s a pressing need to hire new people. And consider if artificial intelligence (AI) and automation could fill some of the resourcing gaps and help you scale up.
Assessing your industry situation
You can’t change the significant external threats in your industry. But you can do your homework and find out what the immediate threats will be. Are there supply chain issues? Are prices going sky-high? Get up to speed and look for ways to minimise the impact and rise to the top of the crop.
Updating your strategy
You will likely need an updated business plan once you have reviewed your numbers, goals, and strategies. Factor in the threats and set meaningful goals, but give your company a realistic target during a global slowdown. Successful small steps towards a goal are better than one giant leap, a leap where you may land flat on your face.
Talk with our specialist team.
Talk to our specialist advisors today about your business goals for the year ahead. Revisiting your goals and plan sooner rather than later appropriately prepares your business for the ups and downs of a recession. Talk to us about your financial position, core strategy, and concerns for six to twelve months.
Contact AFP Accounting today at (02) 7804 1849.
