Forward Thinking Business Blog –
Now that we are in December, this is a good time to review the last 12 months and prepare your 2020 forecasts so that you can position your business for the year ahead.
Key areas to focus on include:
Looking back over the last 12 months will help you forecast for the coming year. Keep an eye out both for growth opportunities and potential trouble spots such as periods when you might under pressure to have cash in place to pay suppliers or staff. Set targets and put procedures in place to monitor progress.
2. Costs & Capital Expenditure:
Review your overheads and look for opportunities to make savings. Involve employees in this process as they may spot opportunities that are not immediately apparent to you. If you have not done so in the last year, check for potential savings—for example could you save by switching suppliers or negotiating better terms? What capital expenditure is planned for the coming year? Are there any changes or timing differences that may need to be taken into account?
3. Working Capital:
Brexit may affect working capital in 2020. Review stock levels and, where possible, encourage customers to purchase sufficient stock in advance to carry them over in the event of any Brexit-related delays. Look for opportunities to enhance working capital—for example by improving debtor control and/or agreeing better credit terms with suppliers.
With Sterling fluctuations likely to continue in 2020, you will need to continue to hedge and manage currency risk proactively.
Are your staff levels adequate for the coming 12 months or will you need to hire additional team members? Have you looked for opportunities to improve productivity or save costs, for example by amalgamating roles and/or outsourcing non-core functions?