Financial Planning for Uncertain Times

Financial Planning to Help your Business Thrive

It’s time to examine business goals for 2021 and set a path to chart them despite the rocky climate we are in. Are you ready to start financial planning?

The Challenge

Uncertainty abounds at every turn, which makes financial planning a challenge.  Whether you are working with existing clients or attempting to secure new ones. Current clients may be struggling financially, making it difficult to project revenue, and new prospects are taking longer to engage, scrutinizing agreements in greater depth and often trying to negotiate proposed fees.

In addition, particularly for businesses that cannot operate remotely, there is continued concern about the health and safety of employees as well as how to proceed if someone contracts the virus.

Crafting a Smart Plan

With so much unknown and in flux, it may become necessary to modify your business and financial plan. You may be able to reduce lease costs by working remotely, yet technology-related costs might rise in turn. If working on-site is a necessity, PPE expenses will become a new line item.

Businesses will need to assess how over or under-utilized their current staff is. If furloughs or lay-offs are necessary, you must then consider whether resources will be adequate to ramp up quickly if business begins to rebound. With all the variables to consider, It is critical to revisit financial planning by having a solid understanding of your cash flow:  how much money do you have to work with and how long can you survive before cash runs out.

Contingency Planning

Contingency planning is essential in this environment, with clearly defined trigger points signaling when a shift may become necessary. Worst-case scenarios may require investigating loan opportunities or modifying staffing levels or roles.

On the upside, it’s also important to think large and consider new needs that may present business opportunities for your firm.  Are there new products or services you could offer to replace those no longer in demand? Is the need short-term or longer-term? The key is developing a solid plan with budgets and projections in place, so you can respond quickly yet prudently.

Tips & Tools

As always, the best offense is a good defense and making sure you have solid systems, technology and human resources in place will be critical to your company’s survival.

• Keep an attentive eye to the marketplace — adapt offerings, add new ones, and eliminate those that are no longer profitable.
• Leverage the advantages of remote work to improve efficiency.
• Investigate and evaluate new technology solutions to maximize efficiencies and minimize expenses.
• Most importantly, plan ahead for a change. The unexpected is inevitable so don’t wait until a crisis hits.

The A Team’s Controller/CFO Teams and Tech Division

The A Team’s Controller/ CFO teams can assist you with all of the above, including strategic financial planning and dynamic cash flow forecasting models that will allow you to weigh action plans against available capital. We can also help with complex analyses to maximize your company’s PPP loan forgiveness.

The A Team’s Technology Division is well-versed in the latest financial software and solutions, and can offer recommendations regarding the most efficient and effective technology for your business, whether on-site or remote. As always, we’re here to help with individualized recommendations tailored to your business. Whatever your challenge, let us help you find a practical solution. Contact our Solutions Manager, Beth Chernick to begin the conversation.