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Haines Watts Slough Phone icon 01753 530333

In the current climate it is no surprise that businesses are approaching investment cautiously. Eventually, the tide will probably turn, and businesses will be chasing growth again.

Just because you are holding off investing now, doesn’t mean you shouldn’t prepare your business to be in the best possible position when you need the next round of funding.

 

Here are my five top tips for making sure your business is bankable in the future.

 

1.   Make sure you have a written strategic plan

Don’t keep your plan in your head – document it. Your plan should contain your business and financial goals and, if these goals are not aligned, review your planning until they are.

 

2.   Forecasts and cash flows

Can you accurately predict your cash flow for the next two years? Do you have evidence to support your assumptions and have you tested your forecasts against your strategic plan?

 

3.   Do you really know your numbers?

Not everyone is passionate about numbers, but to grow and run your business effectively you need to have a solid understanding of your financial data at all times. Make sure you know your profit margin, your break-even point, your capacity and other key numbers that impact the day-to-day running of your business.

 

4.   Is your business attractive?

It is vital to understand the factors a bank or investor will consider when assessing your business for a funding need. The assessment usually extends beyond past financial performance to include factors such as customer dependency, sales pipeline, security of key staff and your capability. Review these areas constantly.

 

5.   Is your growth plan achievable?

Investors always want to know how you plan to spend future funds and whether your timeline for seeing a return is realistic. It is well worth investing time in financial modelling and scenario planning.

 

Seeking financial backing can be a challenging and daunting prospect. Make sure your business is in the strongest position possible well before you need to seek funding.

 

Talk to our Slough accountants about the financial health of your business.

Want to know more? Call us on 01753 530333 or email slough@hwca.com

About the author

Jonathan Moughton

Jonathan runs the Audit & Business Services Department across our London and Slough offices. He is also a member of the National Audit & Quality Control Committee of the Haines Watts Group.

Since becoming a Partner in 1998 he has acted for a wide variety of owner-managed businesses and not-for-profit organisations, as well as having a range of internal responsibilities.

Highly experienced, with a focus on providing high quality advice to privately owned businesses, he has served clients across diverse business sectors in the region for over 15 years.

 

Working directly with business owners, with their ability to make quick decisions, I get to see clients acting on our advice and the subsequent outcomes in practice. I also enjoy the variety of clients I work with and the challenge of meeting their diverse requirements.

If I wasn't doing this I'd be: an engineer.

Favourite Sports Team: Wasps.

Dream Location: Umbria.

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