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Businesses in Coventry and Warwickshire have been urged to plan thoroughly and ensure their cash flow is prepared to handle the pressures of the coming months.
Sean Farnell, Partner at accountancy firm Burgis and Bullock, which has offices across the region was speaking on the Coventry and Warwickshire Chamber of Commerce’s regular Business Intelligence Call.
He discussed the current economic landscape with business leaders, the latest GDP figures, the anticipated UK recession, the importance of having a plan in place to support financial recovery and shared ideas around managing cash flow.
Sean highlighted how, as the economy starts to open back up, there will be additional costs for businesses to incur and Government support is scaled back.
He also stressed that businesses have already proved their adaptability during the crisis, with reported increased productivity in some sectors, and that willingness to change will serve them well going forward.
Sean said: “Having a forward thinking and adaptable business plan is particularly important in difficult times such as these.
“Now, more than ever, cash is king and having a strong plan will help protect businesses against new pressures on cash flow.
“Government support will be scaled back and business owners may need to seek new finance, there are some good options available but it’s crucial to make sure the terms of finance are tailored for your business.
“Self-employed people are the powerhouse of the UK economy, and contribute a huge amount to GDP, so to see the amount of self-employed people reducing is concerning. Hopefully these numbers will start to rise again soon.
“Covid-19 has changed the business landscape locally and nationally. It’s time to start thinking differently and even established businesses should start thinking like a start-up – ensuring they have a robust plan in place for the coming months.”
Hazel Pilling, Membership Manager of the Chamber, added: “Sean provided great insight into issues that are facing businesses now and what they will have to be prepared for in the near future.
“It was interesting to hear the advice on how a strong business plan and protecting cash flow are essential in times of crisis, and at the Chamber we would echo that and encourage businesses across the region to make sure they have a plan in place.”