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Modelling and scenarios: How Fluidly can help you plan in difficult times

If you own your own business, there’s a high chance you already know what it means to adapt. Entrepreneurs are no stranger to change. The ever-moving market requires you to be chameleon-like in order to grow your business, stay ahead of competition and remain relevant to consumers.

This year, business owners have been forced to change their plans almost overnight in response to the coronavirus pandemic. For some, this means halting expansion and cutting costs across the business. For others, it means investing in new areas and adapting services to suit customers’ needs as we enter into a period of prolonged isolation.

As with any change in business strategy, these actions come with consequences. And it’s important to understand what those are before making a decision that could affect your cashflow for months, if not years, to come.

This is where Fluidly can help.

Fluidly’s Goal Planner tool allows business owners to easily see how different scenarios will affect their cashflow forecast. Pre-configured plans for cutting costs and reducing revenue make it simple to build and compare models, giving you the clarity you need to plan for the challenges ahead.

Here are some examples of ways that you can use Goal Planner to model your business strategy over the coming months.

Staff costs

You may have considered putting a recruitment freeze in place in order to reduce costs. This will improve your overheads. But if you need a new salesperson in order to hit monthly targets, it could also have a negative impact on your revenue.

Goal Planner will show you at the touch of a button the effect this scenario will have on your cashflow forecast. Helping you decide if a recruitment freeze is the best course of action to take at this time, or whether it makes more sense to invest in staff to ensure business can continue as normal.

Fluidly’s pre-configured staff plan factors in National Insurance, pension costs and recruitment fees, so you can be sure you’re including all expenses within your model.

Reduced revenue

Many companies are looking at a reduction in revenue over the coming months. Particularly those who operate in badly affected industries such as leisure and hospitality.

If this is the case for your business, Goal Planner will show you how your projected revenue losses will affect your cashflow forecast. Giving you clarity on the action you need to take in order to stay above water. Whether that’s applying for funding or adjusting your spend.

Government support

The government has launched a series of Covid-19 initiatives aimed at reducing costs for businesses during this period. These include the waiving of business rates, the Coronavirus Job Retention Scheme and the deferring of VAT.

Business owners can input these cost reductions into Goal Planner to see instantly how their cashflow will be affected.

If you need a cash injection, you could look into acquiring government-backed funding.  But before you take this step, it’s important to build a scenario that will show you how the loan, and the interest it acquires, will affect your business in the long term.

Adjusting spend

If your business remains under financial pressure despite government initiatives, you may be looking to take more drastic action.

Perhaps you’re a shop owner who is considering moving your business permanently online. In this case you will need to reallocate spend from areas such as property rental, into new developments in ecommerce and delivery. Goal Planner will allow you to model these cost adjustments easily.

Unlike traditional manual models that require financial training to assemble, Goal Planner is user-friendly and easy to understand. The tool allows you to compare several different scenarios against your baseline forecast, so you can make informed decisions about what to do next.

The Goal Planner tool has been specifically adapted by Fluidly in response to the coronavirus pandemic. New features allow small business owners to compare a host of cost-saving options against their baseline forecast.  The pre-configured plans factor in all considerations, including hidden costs, so you can be sure your models are accurate before making a decision.

Join Fluidly Starter today and try Goal Planner for yourself. Or, if you’re already a member login to the Fluidly platform to get started.

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