Engaging Financial Challenges

Published: 12th April, 2021

The biggest financial challenges for businesses of all shapes and sizes are currently:

– Limited cashflow – whether this is proper invoicing procedures or understanding the breakeven process so all monthly bills are covered, a realistic budget plan is required to ensure success;

– Not using the budget correctly – initially, the business has to have a completed budget plan; and know how to stick to that plan; especially if that requires updating the plan to reflect current circumstances. Every budget plan should include fixed and variable costs; one-time costs; a cash flow statement and profit&loss;

– Not having done the proper risk analysis in case of unforeseen expenses – these can derail the best-laid plans of small businesses. The answer is to continue to grow the account when things are going well; a sort of ‘rainy day’ fund;

– Unable to raise enough capital – in SME research papers, 82% of businesses were unable to secure funding due to lack of knowledge of their companies’ credit score. This stops businesses having opportunities for venture funding; private equity; SBA-backed loans; government backed bank loans and to use personal savings. In order to get loans, have a business plan in writing; work to improve the credit score and make sure the P&L statements and balance sheets are up to date;

– Having too large a debt – entrepreneurs are usually happy to ‘bootstrap’ the business. Whatever mean is used to put in this extra money, there can be short and long term impacts on the business. To avoid this trap, identify the cost saving areas; utilise the current client database as much as possible; consider creative accountancy strategies; communicate with creditors and let them know the situation and try as much as possible to consolidate all loans into one payment;

Prosperity for all begins with a refusal to shy away from the biggest challenges. Business and government must proactively work together to lift our productivity. To renew our infrastructure, solve our skills gap and invest in new technology. As the voice of UK business, we campaign for the changes that deliver the shared vision of prosperity for all.

Confederation of British Industry, 2021

– Neglecting the necessary processes for reporting – using a recognised bookkeeper will always lead to a better outcome in the long run. Not reporting financial data, or in fact filing inaccurate reports can lead to financial losses;

– Non compliance of taxes – cash management is difficult enough as it is, so complicating things by non-compliance is going to hurt the business;

– Inability to pay bills on time – everyone you deal with is in business. Just like you would like to be paid on time, so would your suppliers, and everyone you owe money to;

– Mixing business and personal finances – funds for business have to be kept separate from personal funds. According to a Clutch survey, 23% of small businesses do not have a separate business bank account; which would make a business breakeven analysis incredibly difficult;

– Poor marketing practices – continuing to have a pipeline keeps the possibilities of sales and monies coming into the business. Without proper marketing, the financial implications are huge.

The ‘webinar’ word doesn’t really describe what it is we do with our time in sessions. We love a conversation where everyone has the chance to contribute.

Participants are provided with the means to make connections thus drawing attention to the conversation that is going on around.

It’s how we roll!

YOUR TAKE AWAY

Financial challenges are a reality, but can be especially challenging in the current climate and foreseeable future. Having a conversation with YourBigPic will help small businesses continue their success in any market. You can find out more about what those challenges are and how, by making connections using BIG PICTURE we can help you break open the whole conversation with your colleagues to agree on Challenges and flip them into Opportunities.

Join us on the 23rd April for a taster session to introduce you to an innovative approach for engaging Financial Challenges with YourBigPic.

Time to tell your own story – let’s go ..

WHAT NEXT ?

Please do ask us to help you achieve this same impact in your organisation. We can deliver this activity for you and at the same time upskill your team to take over the delivery. You can weave this into your ongoing activities which means you’re paying once for resources and deploying them many times across your organisation.

Find out more about our approach for Engaging Finance led by our YourBigPic Performance Lead Hywel Griffiths. You can have a go yourself by printing and writing on the resource within the brochure you can download. The stuff we care about is all over our YouTube channel @YourBigPic. I would love to take you through a taster of BIG PICTURE® in a Webinar you can sign-up for here.

Thanks for reading!