Pay close attention to the numbers
We live in uncertain times and it is going to be a while before we get to any form of stability. If you’ve not been ‘on it’ before, now is the time to get over your fear of numbers and be really clear about what’s coming in and going out.
If you need to work with your accountant or bookkeeper, fine – but if you don’t know your numbers, you’re hiding from the truth.
Close analysis will tell you what’s going on, where the issues are arising, where you can save money and so on.
When we live in uncertain times, survival is about your ability to flex, adapt and act quickly – those decisions will be informed by your numbers.
It may well be that you have to make some tough choices. Those decisions will have to be made sooner rather than later and the timing will be dictated by … the numbers.
This isn’t just about business either. You should be looking at your personal numbers as well.
What can be deferred, reduced or cancelled?
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And be tough if you need to.
If you’re worried about personal cash flow but are paying monthly subscriptions to Sky, Netflix and Amazon Prime then don’t come to me because you haven’t got enough money to buy food.
At the moment, we are in a completely different situation to 2008.
Pretty much everything is on hold and it goes all the way down.
Yes, income has reduced – dramatically – but outgoings should reduce too.
Even if they’re not part of the government’s plans, if you need to defer utilities, credit cards and so on, then you’re in the best place to do just that. It’ll be a brave company that enforces their debts during this time as it would be a PR disaster.
There have been changes to the insolvency rules, and I think there’ll be more to come – to provide us with protection at the very bottom end.
Which means that right now, we’re in a kind of stagnant state. Not something that has ever really happened before.
The real challenge will be when everything gets switched on again. Both incomings and outgoings will increase – but at different rates.
That is when you will really need a handle on the figures, so make sure you get into good habits now.
We’ve all heard the advice before, “Know your numbers!” … but do you really have total knowledge and control of your finances. Seek out expert support if you need guidance and help.
Simple guidance from Yorkshire Powerhouse
Now you’ve read our article on paying attention to the numbers- have you any more questions?
Here at Yorkshire Powerhouse, we’re happy to help as much as possible – is there anything else we can do to help you, do you have any further questions or can we help introduce you to an expert – please let us know:
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