Hindsight is 20/20. This is a saying which means that "It's easy to know the right thing to do after something has happened, but it's hard to predict the future." Let me explain why this phrase has that meaning. First, "hindsight" means "thinking about things after they've happened". “20/20” means perfect vision. The combined phrase “Hindsight is 20/20” means that you can tell what you should have, or could have done in the past, but it’s very hard to decide what to do when you can’t predict the future.
I think this phrase is very fitting right now, and I can imagine pretty much every business owner since the unprecedented Covid19 crisis hit the world has at one point in the past few weeks thought to themselves... ‘In hindsight, we could have done stuff differently’.
Unfortunately, we can’t change the past but what we can do is learn from it in order to change, and protect ourselves in the future.
Imagine now that this were to happen again, except you had already implemented a system that ensured you could rest easy knowing your business was completely equipped and prepared for any financial scenario that comes your way.
To run a successful business, even the best CEO’s need to be financially and business savvy. Business owners need to start knowing how to handle money and make smart choices with it, so that when the economy comes crashing down in an instant, you don’t end up lost in a sea ofSME’s that just can’t get back to shore.
If you clearly saw a path to a predictably strong and profitable business, how much would that be worth to you?
Currently, every business is running in survival mode, but when you get through this all of the costs,the loans (CBILS or otherwise)the VAT, PAYE, personal tax and corporation tax that you have deferred will need to be paid back. What you do not want is to struggle through the next 2-3 months and then find your cashflow management system is not robust enough to cope.
As business owners ourselves, we understand that future proofing seems hard when you are just trying to stay afloat, however in a few weeks you should start thinking about implementing a cashflow management system.
As one of only few Profit First Professional firms in the UK, we specialise in helping you architect your cashflow so that you can not only get through the imminent period, but can also sustain your future. Our bespoke cashflow management service is designed to suit you and your business. Whether it’s implementing the Profit First methodology, producing detailed cashflow forecasts through Futrli or transitioning your business to a cloud based bookkeeping system like Xero, we are here to ensure that you understand your finances and get on-top of your cashflow.
Download our FREE Guide to Profit First and take your first step towards architecting your cashflow and futureproofing your business.
If you would like to discuss our cashflow management systems, please email firstname.lastname@example.org