FEATURE: PROFESSIONAL SERVICES


Focusing on the future


Adam Croney (pictured), Director at Thomas Westcott Chartered Accountants, outlines the focus for businesses as they look to the future.


business sector. Many have been in survival mode


T


and some are facing devastation. However, the time has come for some businesses to start focusing on the future and this is an opportunity to make positive changes. Here are some of the key areas


on which my business clients are now focusing their attention.


1. Riding the digital wave The Covid-19 crisis has forced many businesses to accelerate their engagement with digital technology just to survive. Anyone


he coronavirus pandemic and lockdown have, of course, put a huge strain on the


who has been able to continue to do business online – whether that’s trading or allowing staff to work effectively remotely - has fared much better during the pandemic. There is clearly now an opportunity for businesses to leverage advances in technology they have made in recent weeks to help the business not only survive but secure a bright future. That could mean focusing more on selling or building community with their customers online, or continuing to engage with digital platforms, such as video conferencing, to communicate in a more cost-effective way with customers and professional contacts.


2.Focusing globally or locally


The current crisis has led to market extremes. On the one hand, the explosion in the use of digital technology has massively increased the opportunities for businesses to be globally connected. On the other, we have seen a


surge in consumer support for local producers and retailers, with some companies thriving as a result of becoming hyper-localised. Many have chosen to queue up outside their village farm shop to buy groceries, for example, rather than visit the supermarket. The challenge for businesses now


will be to assess where their market is likely to be for the next three to five years and how they can grow into it. While marketing activity is quite easy to turn off when you need to cut costs, businesses will need to restart their marketing engine and plan for how they can promote themselves to enable movement into new markets.


3.Continuing to innovate and diversify


What price could we put on the headspace and clear thinking time many business owners have had over the last few weeks? The crisis has generated an


extraordinary burst of entrepreneurship and innovation. Of course we have seen some businesses diversifying to respond specifically to the crisis, such as textile companies manufacturing facemasks and gin distilleries producing hand gel. Others have been exploring new products or routes to market, which could deliver longer-term opportunities. Many businesses are considering how they can pivot over the next


three to five years to leverage their innovative ideas to meet the needs of the future economy.


4.Managing cash flow The phrase ‘cash is king’ has perhaps never been more pertinent than it is now. There is now a real need for businesses to stress test their cash flow. We recommend having a detailed rolling 13-week cash flow projection to reflect activity over each quarter. Many businesses are now benefiting from Government support but much of this, such as deferred VAT payments and bounceback loans, will have to get paid.


Businesses will need to keep a


tight control of costs but don’t want to miss out on opportunities so this could be a difficult balance. They also need to be prepared for the real impact of the crisis, which could come nine to 12 months down the line for some.


5.Reviewing supply chains Many of our business clients are now shifting from a state of emergency to a position in which they can think more strategically and plan for the future. They now need to review their supply chains to ensure that the suppliers and customers on which their business depends are also ready to get back to work.


Adam Croney is based in Thomas Westcott’s Plymouth office. Over the last decade, he has supported a diverse mix of clients, from charities and not-for-profits to owner-managed businesses and large listed groups. He has extensive experience of providing a full range of accounting and tax compliance, support and advisory services enabling his clients to stay safe and get one-step ahead – often growing through adversity.


www.thomaswestcott.co.uk 22 Chamber Profile Summer 2020


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40