Fail to Plan and you Plan to ……?

There has never been a more important time to plan and draw up realistic budgets that have been properly thought through. The physical as well as financial parameters need to be examined carefully and recorded so that you can remember how you arrived at the answers. Timings and remembering when loans start to be repayable or where new loans commence will have a big impact on next year’s results. Many of the bills that have been put on the long finger may have to be paid more rapidly than you would like. Merchants are under increasing pressures in their own right and will have to pass the pain down the line to possibly survive themselves.

The one thing that is certain is that you should not bury your head in the sand. Be realistic and face the music by trying to work through any problems that may arise. Help is often available if things are tackled openly with a dose of realism early on. As the ramifications of the Covid pandemic continue to unfold, there will be many more business failures outside of agriculture, which in turn will put pressure on our markets and suppliers. It is a time for asking the fundamental questions such as why am I doing what I am doing? In many cases people have lost sight of the core business and let efficiencies slip. There may be too much capital tied up in poor return investments and unnecessary equipment. Now is a good time to reappraise everything and “reassign assets” to more useful purposes (which may include repayment of debt). If selling machinery or land, be aware that there may be income tax or capital gains tax implications, so check with your accountants.

While this all sounds very gloomy, reality must prevail. Those that tackle issues head on and plan effectively tend to survive better and also get more people co-operating on their side e.g. Banks. Taking a decision and embarking on a positive plan of action can actually create a breather for people while removing some of the negative pressures. Indecision can lead to a form of paralysis.

The cycle needs to be broken and taking positive action enables a better mental state to be achieved. This in turn can start to provide the route to a healthier business future. If things seem very grim, seek help and share the problem by talking everything over with a third party.

Contact Ian at or your local FCG office, to request a confidential conversation today.

Posted in Business Management, Stafford.