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A reminder to protect your business capital

16 January 2024

In the new year, business owners must proactively plan to safeguard capital amid global challenges. Strategies include listing fixed costs, negotiating with stakeholders, revising business plans, securing additional funding, and seeking professional advice for tailored solutions.

Embarking on a new year presents a prime opportunity for business owners to engage in proactive business planning, particularly to protect their capital. Global trade remains impacted by the war in Ukraine, Middle East tensions, and disruptions in the Red Sea, compounded by persistent inflation and high interest rates leading to cost escalations.

Facing these challenges, what measures can resilient business owners take to protect their capital and be ready to re-enter the market when consumers regain confidence?

Consider the following strategies:

  1. List all fixed costs, identifying those unavoidable even without incoming revenue. Cancel any non-essential costs or those that can be re-established when markets open up again. Recognize that some costs may be tied to unbreakable contracts.
  2. Reach out to suppliers, landlords, service providers, etc., negotiating for a payment moratorium, reductions, or contract cancellations to help protect capital.
  3. Revise your business plan for the upcoming year, factoring in the current challenges. Speak to your bank or other funding sources to secure additional cash to weather potential cash flow dips.
  4. Crucially, anticipate the awakening of your business when consumer spending regains momentum.

Lastly, seek professional advice. Collaborate with your professional adviser who understands your business intricacies, challenges, and achievements. They can provide invaluable insights and guidance tailored to your specific situation. Act now and initiate discussions to explore your options to protect your capital.

Source: Other Tue, 16 Jan 2024 00:00:00 +0100

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