Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Tuesday, September 09, 2008

Don't be an Ostrich

There can be little doubt that a well managed business will constantly look forward and consider all of its options, others are likely to be doing a very good impersonation of an Ostrich with its head in the sand.

In these changing times being ahead of the game is key. Review all of those accepted assumptions and be tough in your expectations for the future. It is important to remain sceptical about the strength of trading conditions going forward, and be prepared for the possible outcomes, including the worst and unthinkable ones.

Businesses that do not follow this path, and either keep praying it will all be alright, or like the ostrich just hide until the danger passes, are significantly more fragile. Should the tide turn against them the possibilities of rescue are much more limited, be that through new funding or formal or informal insolvency routes.

So, make sure you are managing the cash harder, cut out the luxuries and excesses, and ensure you have a clear plan (or two or three!) that is likely to win the support of outside stakeholders should it be needed. Take a day out from your day to day routine and make a start.

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