Now that the majority of COVID-19 restrictions are being eased, or removed completely, can we assume that normality can return in place of the unremitting uncertainty of the past two years?
Whilst this may seem to be a welcome prospect, business owners badly affected by this disruption will have two issues holding them back:
- A depleted balance sheet – reserves used to survive extended periods of shut-down or reduced trading.
- The repayment of loans taken out to fund overheads and other fixed costs during lockdown.
Both of these issues will inhibit a sudden rush of activity unless sales are made on a cash basis.
To minimise any downside risks we recommend pausing to create a realistic business plan for at least the next twelve months. This will identify any dips in cash resources and reveal the level of profitability that can be achieved.
Please, pick up the phone if you would like to discuss the best way to build a plan for your business.
