Weathering the storm: How resilient is your business to financial pressures?
Mr Bankruptcy
20th September 2022
In a previous blog post we spoke about building financial resilience into your business but, as many businesses continue to feel financial pressure in the current economic climate, thinking about new ways to build resilience will help companies to ride out the storm.
How can businesses build resilience?
Business resilience to financial pressures comes from not having one particular strength but rather by building and spreading resilience across a number of facets of a business. A weakness in just one aspect can have a knock-on effect, making your susceptibility to financial pressure very apparent.
To determine how resilient your business is to current and potential financial pressures, consider the following broad areas:
- Commercial resilience: How good are you at retaining clients? How could the current economic climate affect them and what are the implications for your business? How could you generate new clients or diversify to maintain existing streams of revenue and grow new ones?
- Operational resilience: How agile is your business and able to adapt to changing circumstances? Flexibility in how your business operates could make or break a business. Are you able to make cut-backs when necessary? Can your business adapt to changing economic, environmental or regulatory situations to keep it relevant and able to meet client needs?
- Organisational resilience: Do your employees and managers have the knowledge and skills to make decisions that reflect the changing world around them and do they make decisions that demonstrate this understanding? Training and education are important, but employee wellbeing also matters to ensure they too are resilient and that you have a good reputation as an employer to continue attracting talent.
- Environmental resilience: Not only are there physical threats from the environment around us, such as fire or flooding, but businesses increasingly need to be sustainable, taking on a responsibility to minimise their impact on the environment, especially in light of the expectations of customers.
The next step to business resilience
Throughout the past few years up to 2022, businesses have had to continually adapt to new challenges that have tested their resilience in many ways. Continuing to build financial resilience, together with resilience across all aspects of your business is essential to help short-term survival and to establish a base for longer-term success.
Having this awareness helps business owners to spot the signs when their business is getting into difficulty and enables them to act quickly. The ability to address challenging situations depends largely on acknowledging the problem and being prepared to seek specialist advice.
While such a conversation can seem difficult to initiate, it can be an essential part of your toolkit for building greater business resilience.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face financial challenges including unmanageable debt, or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.