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Business Advice

The Key To Business Resilience In Tough Economic Times

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We have all faced the economic storm of the last few years. With supply delays, COVID-19 impacts, high inflation rises, natural disasters and conversations about another recession, business owners have every reason to feel nervous about the future. 

However, there are specific frameworks that strengthen businesses and help them weather ANY economic storm.

Clout Advisory Director Michael Brennan, a leading expert in insolvency, turnaround and restructuring, knows how a business may fail or become insolvent and how best to prevent this by future-proofing your business to be more resilient in challenging economic conditions.

 

What is business future-proofing?

 

By definition, future-proofing is to make (a product or system) unlikely to become obsolete or fail in the future (Oxford Dictionary).

Future-proofing is a form of strategic planning that considers the long-term well-being of something. It involves anticipating the future and developing methods to minimise the effects of shocks and stresses.

With all the uncertainty and continual stressors in our economy, business future-proofing has become an essential part of any company. 

“Future-proofing your business is putting yourself in a position whereby, regardless of what circumstances are, you’re steering the boat in the right direction,” Michael said.

A business can use multiple mechanisms and frameworks to set a firm course and weather any economic storm.

These frameworks act as preventative measures and risk management. Therefore, you do not need to predict the next economic crisis to future-proof your business.

“Chances are your revenue drops or costs increase. So what you do is still going to be effective regardless of what that trigger event is,” he said.

Future-proofing involves creating as many check-in points as possible to prevent unexpected losses in revenue or cost increases. These check-in points include having the correct internal and external structures and having processes for income, expenses, and lead generation. What changes with cost increases? How many debtors still owe you? How long till you get paid?

Clout Advisory has seen many businesses at all stages of maturity end up in rough waters due to the lack of future-proofing and the perfect storm that economic crises create for small business owners.

Receiving the right advice can result in a fast bounceback and a solid foundation for years.

If you want to talk to an experienced business advisor who can assist you in future-proofing your business, contact Clout Advisory at 1300 886 006 or email admin@cloutadvisory.com.au. 

 

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