What if?

Source: Other | | 15/07/2020

Any planned change will be targeted at a specific issue – say, reduce sales prices to win more customers and increase footfall – but actions of this kind have knock-on effects. For example, what effect will the proposed reduction in sales prices have on profits, cash-flow and solvency?

Many of these scenarios can be mapped on spreadsheets or backs of large envelopes, but this requires an investment in time that very few of us can afford.

To undertake these calculations, it is necessary to nest formulas – the math – to cope with the variables involved. This involves asking a string of what-if questions to fathom out the required result.

Without a doubt, the question what-if is a key that opens doors to resolve complex problems.

COVID-19 has created unprecedented economic disruption. This means that all business owners need to consider their options; what do they need to flex in order to survive in the coming months?

If you are short of ideas for this planning process we have listed below some of the financial indicators that may need to be considered. 

Concerns about:

  • Sales, pricing, volume, footfall.
  • Direct costs, raw materials and direct labour.
  • Other fixed costs
  • Profitability
  • Sustaining losses
  • Cash-flow
  • Solvency
  • Financing

Each of these items may have effects on others in the list.

And we can help. Let us cope with the math for you. We can ask the what-if questions and reorganise your answers into an integrated planning report. In the coming months it is businesses that undertake this detailed planning that will emerge intact as things gradually return to pre-COVID levels.

Please call so that we can organise this for you.

 



Contact Us

Ledger Sparks
Airport House, Suite 43-45
Purley Way
Croydon
CR0 0XZ

Tel: 020 3985 6000
Fax: 020 8781 1889

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Follow Us

  twit-new   twit-new

Online logins

 

Membership

  

  

Latest News

Job Retention Bonus policy paper published
06/08/2020 - More...The government has published further...
£50m extra funding for Customs Intermediary Grant Scheme
05/08/2020 - More...Over the past few months, HMRC has...
£20m in new grants for small businesses
05/08/2020 - More...£20 million worth of new...