Trying to save a struggling business can be a very draining process. This is especially true if you know your a have proven product and a market for it but just can’t seem to catch a break. Employing the services of a financial planner might prove the kiss of life that your business needs.
One of the most common reasons for a business to struggle is lack of a roadmap or a plan and this is especially true if there is no financial planning in place. With no financial plan, revenues seem too infrequent, bills come too often, cash flow is limited, and the business seems to be in constant state of playing catch up.
It is tragic when any business fails but it is especially so, when a viable business with a great product goes to the wall, not because they have no customers, but because their finances are in disarray. It could be so much different with a financial planner in place, to assess, advise on and structure the business’s finances in such a way that rather than struggling, the business thrives.
So, what can a financial planner do for your struggling business?
The first thing they should do is ask for as much information as you can provide them on the current state of the business, and its finances. From here they can assess the good, the bad, what’s being done right and what is being done wrong. It’s a bit like getting your school report, although in this case you are not trying to please your parents, you are trying to save your business.
One of the crucial elements that your financial planner will help you with, is the company’s cash flow situation. Even with the biggest of profit margins on their products or services a business can struggle if it can’t generate enough revenue to cover its costs. By analysing the relationship between costs and income your financial planner will help you to increase the revenue, or at least the rate at which the revenue is received.
Even more importantly they will advise how to minimise your costs through many methods, and best practices. This will cover everything from paying suppliers, utilities, premises rental, employee costs and even how to lower your taxes. This list is not exhaustive as there will be many other ways costs can be reduced.
Your financial planner should also have access to information relating to business financing such as grants, funding and investors. It is remarkable that there are so many sources of finance available to businesses that they do not even know about, so this is a huge benefit of having a financial planner on your team.
Assuming your financial planner helps you to steady the ship so that it overcomes its current difficulties they will also help plan for the longer term so that instead of struggling, you can look ahead to your business expanding. By implementing financial planning you’ll be doing something that many of your competitors won’t be doing so as your business flourishes they’ll now be the ones struggling to keep up.