How to Turn Setbacks into Strategy!
Apr 22, 2024
We all have times in business where things don’t go according to plan, and finding yourself at a point in the year when your financial picture doesn’t match your vision can be disconcerting. It’s particularly challenging when you’ve navigated these waters alone without the seasoned guidance of a proactive accountant. In this blog, we explore how to turn setbacks into strategy and how to turn these challenges into opportunities.
So, what do you do if you reach a point in your financial year where your profit margins are slimmer than expected?
Rather than feeling unprepared and anxious, know that this is your opportunity for strategic change and financial recalibration and that this is a common juncture for many businesses which is surmountable.
Here’s some advice to help show you how to turn setbacks into strategy and get back on track.
Analyse and Evaluate
Firstly begin with a thorough analysis of your finances. This should be more than a brief glance over your books; it’s a deep dive into your income, expenses, and the expected versus actual financial outcomes. Engage with an accountant who is willing to help with this forensic review. They should offer insights into where your financial strategy may have misaligned with the results from your actual business operations.
Review decisions made which may have contributed to the current financial position. Was it the right decision? Does it just need more time for the results to be seen? Or was it the wrong decision which you now need to review in detail to mitigate any further risks.
If the right decisions have been made then evaluate your timescales and bring in a reality check as to when and how these results will flow into the business. Update any financial forecasts to show these assumptions more accurately.
Get the Right Help
If your current accountant has not been up to the task, it’s time to consider a change. Seek out the right person to work with who has the experience to help you themselves and connections to those that can offer support on more technical areas.
Best Foot Forward
Moving forward it’s important to build a framework that will prevent a recurrence of this year’s issues. Schedule regular financial reviews, establish clear communication channels with your new accountant, and set interim goals that will keep you on track throughout the year. These steps will help you stay informed about your financial position and tax strategy well before the year-end.
Incorporate financial planning into your business culture by prioritising an annual budget forecasting and contingency planning. Your accountant should aid you in this endeavour, equipping you with the tools and knowledge to make savvy financial decisions throughout the year.
Success is as Much About Mindset
Embracing a growth mindset will also be crucial during this time. While it may be tempting to linger on what went wrong, channel your energy into learning from these experiences. Remember that with every challenge comes the opportunity to improve and refine your business practices.
Learn from Your Mistakes
Lastly, accept this as something to learn from. This is an opportunity to reassess not just your financial practices but your business strategies as a whole. It’s a time to be creative, to innovate, and to be fearless in the pursuit of a stronger business model.
As you go forward, do so with the knowledge that you are taking proactive measures to ensure a brighter financial future. With strategic planning, a trusted accounting partner, and a mindset focused on growth, you are laying the groundwork for success that will be felt for many years to come.
Talk to Us!
If you are on the lookout for an accountant who will work with you to make sure this never happens, then look no further. At Troy Accounting financial strategy and management for SME’s is our superpower and we’re looking to work with forward-thinking business owners who recognise the value of working with an accounting service provider like us. If you’d like a non-committal discussion about our services and how we could help you, drop us an email at [email protected] or call us on 0330 134 0282
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