As winter turns to spring and the crocuses start to burst forth, so we are hoping that the recession will gradually recede and the economy will return to growth. There may be a few more icy blasts to come, but the trend seems to be positive at last.
For many companies, new growth after a cold spell can be fragile and dangerous. There are suddenly lots of new demands on resources – orders requiring additional stock and manpower, possibly new investment required in machinery following a hiatus during the recession, etc. The lesson from previous recessions is that many companies fail just as the economy is picking up, simply because they cannot cope with the new demands and they run out of cash.
Banks are still cautious in their approach to lending, so businesses need to keep a close eye on their own cash flow. This is where a proper set of integrated financial fs can prove crucial. No crystal ball is required – just a plan for your business and some sensible estimates.
The term ‘financial forecasts’ is an unfortunate misnomer, since in many cases they are not a ‘forecast’ at all. Their purpose is not a prediction of what will happen, but to provide an approximate example of what could happen. It is most unlikely that all the assumptions on which the ‘forecasts’ are based will come true.
The main benefits of a set of ‘forecasts’ are
• they can highlight potential problems in advance, so that management can take preventative action; and
• they provide a framework against which management can measure their progress.
These are basic management tools for all serious businesses. Let the experts help you plan your route out of recession.
For the month of February 2015 we are offering a 50% discount to the first five businesses that sign up to purchase a set of financial forecasts. We know how important a set of forecasts is to your business and we want to show you why.
To save £850 and receive a set of financial forecasts worth £1,700 contact Jennifer Davies on 01484 538351 to see an alternative view of your business.