Be prepared for more uncertainty

At the time of writing, it feels like there is a perfect storm on the horizon. New variants, looming lockdown fears and inflating input costs.

It is critical therefore that you plan, plan and plan again for the worstcase scenario. If you have planned and prepared for the worst, and it doesn’t materialise, then the upside is yours.

Work with your advisors to develop several sets of forecasts linked to each scenario. We all know cash is the lifeblood of any business – what are your cash reserves like?

If you are concerned that they aren’t robust enough to withstand a downturn, can you access additional liquidity should you need it? This could be by way of liquidating stock or other assets, stretching creditors, injecting personal funds or raising external capital.

If you require support from your bank or lender in any form, speak to them early and with transparency; help is available. The Recovery Loan Scheme is all that remains of the government’s Covid business support schemes.

Its deadline was extended to June 2022, however, from January onwards the guarantee has reduced to 70 per cent. Visit the British Business Bank’s website to find an accredited lender.

Despite the doom and gloom, many, in fact the majority, of businesses that I speak to are trading and trading well. If 2022 has growth in store for you, the good news is the market is awash with debt and equity investors who are sitting on cash and keen to invest.

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