When growing your business, it’s easy to get distracted by a significant increase in turnover which may not always be replicated in profitability and ultimately cash flow.

We can help you develop a sensible long-term organic/acquisition-driven growth strategy that enhances profitability and cash flow, protecting the long-term future of your business.

AUTUMN STATEMENT

The Autumn Statement And The Impact On SMEs

While the Autumn Statement contained a number of pre-election giveaways, including reduced national insurance contributions and an increase in the state pension, there was little assistance for SMEs. The National Living Wage will increase by 9.8% from 1 April 2024, with the threshold also lowered from 23 to 21 years of age, which is positive for employees but leads to increased labour costs for business owners.

After a period of double-digit inflation, rising interest rates and a slowing economy, SMEs will find it difficult, if not impossible, to pass on increased labour costs to their customers, hitting profit margins. Relative household disposable income is not expected to reach pre-pandemic levels until 2027, placing further pressure on consumer spending. Many SMEs are facing significant pressure on cash flow with a need to enhance efficiencies and maximise profitability. 

CASH FLOW REPORTING

The Key To Business Growth

If you’re looking to grow your business, it’s important that you take a holistic approach to cash flow reporting, looking beyond simple profit and loss statements.

Whether growing by acquisition or organically, you need to have a firm grasp of how company funds are utilised and any potential improvements. This allows you to create a solid financial foundation for the long-term expansion of your business.

CASH FLOW EFFECTIVENESS

Are you confident in your cash flow reporting?

Assumed synergies and theoretical cost savings have been the downfall of many businesses looking to grow by acquisition. It’s important to run regular cash flow forecasts, research in detail any potential acquisitions, and ensure that the required resources are available.

We have advised many companies on their growth strategies, looking beyond traditional turnover and profits and drilling down into the financials with detailed cash flow forecasting.

LINKEDIN ARTICLE

Address short-term challenges while focusing on long-term company growth. Though growth by acquisition seems straightforward, practical considerations like cash flow projections and scenario planning are crucial. We've been approached by several companies seeking help with their growth acquisition strategies in recent months.

Read our latest article regarding it.

https://www.linkedin.com/pulse/growth-acquisition-five-common-mistakes-daryl-gilley-vl9ne/?trackingId=3%2BuHZVYlRda8JS4eNNaVXw%3D%3D&__s=xxxxxxx&utm_source=drip&utm_medium=email&utm_campaign=The+Autumn+Statements+Impact+on+SMEs

BUSINESS SUPPORT

Should you be outsourcing? Eight signs to look for

An obsession with control and a determination to keep everything in-house has been the downfall of many a potentially successful company. It’s inevitable that your company structure will change as the business grows, job roles will split, and different strategies will be needed.

Steve Jobs said many times that he only employed cleverer people than him, and he didn’t tell them what to do. Where you have the skills, use them; where you don’t, outsource them.

It really is that simple.