If ever there was a time that highlighted the need for sound financial planning, it was 2020.
The global Covid-19 pandemic highlighted households and businesses that were teetering on the edge of collapse, and all it took was one pandemic to wipe out thousands of companies in a matter of months.
It is not too late to start thinking about your future and how you can set your family and business up for a turbulent 2021. Amongst all of the uncertainty, there is a dire need for better planning, rainy day savings funds, and a more secure future for you and your families.
Here are some key elements you need to consider for 2021:
- Evaluate strategies
- Consider creative alternatives
- Outline the best and worst-case scenarios
- Find people to collaborate with
- Evaluate Strategies
- If you have not yet done so, it is time to sit down with your family or company leaders and evaluate what was done well and what were your shortfalls.
It is essential, to be honest about what needs to stay and what needs to go from that perspective. Taking out emotional responses is ideal, so it is better to have more people in the room to identify whether it is a rational decision or a personal decision to hold on to something that should be eliminated.
Right-sizing your family expenses, company size, staffing solutions, and even opportunities to outsource some aspects of your company is a crucial part of this plan. Do it fast and be ruthless. It is about survival.
Consider creative alternatives
Some aspects of your company may not be core to your business’s daily functioning and may be causing you more headaches when it comes to paying for a resource that can be better utilised. If marketing is not core to what you do, consider outsourcing this function to a part-time person who can reduce your expenses and most likely do a better job.
The same applies to admin tasks. Consider hiring a virtual PA who can do all the running around and organising events for a fraction of the monthly cost.
Accounting and financial resources can also become costly if they are a monthly salaried employee. There are many options available for these elements to be outsourced and save you money in the long run.
Outline the best and worst-case scenarios
Nobody could have predicted the devastation of the Covid-19 pandemic. But you can do the sums to see what the outcomes could be for making these changes in your business. Be ruthless and try to pick it apart in as much detail as you can. If you can break it, you can find ways to circumvent that upfront.
Now is the time to find like-minded individuals and companies that you can work alongside with. Don’t be shy to pick up the phone to ask someone for advice or have coffee with a competitor to see how you can lower costs and do better business in your industry.
If you need help in financial planning, accounting, and auditing, give us a call, and we can see how we can help you in these trying times.
Follow our Facebook Page for more regular updates on how you can improve your business.