It’s important to recognize that volatility, including downswings in the economy or the impact of the current global situation, is natural and an inevitable part of doing business in 2020. Panicking during the ever changing pandemic may cause you to lose sight of your overall business vision.
Avoid Emotional Reactions
Don’t act out of fear and panic. Human nature is to react quickly to a crisis. Review your financial plans, budgets, cost saving opportunities and revenue streams. Reach out to your Accountant before you do anything drastic.
Tweak your Financial Plan
Your accountant can assist you in understanding how your financial plan and business strategy has been organized to help withstand volatility. Discuss your overall plan and tweak only if necessary.
Self-isolation and physical distancing may mean customers are not spending money on normal activities like dining out, movies, shopping, travel and gas for daily commute. The majority of households are spending less than normal. Being proactive in offering your products or services online, if possible, or looking at other revenue streams you may have not considered previously, is time well spent.
You do not need to row the boat alone. Your accountant can provide valuable insight and guidance in how to navigate uncertainty and create a solid financial plan for that is profit focused.