Cloud Accounting LLP will help your business survive and thrive during Covid by offering you a Strategic Recovery Plan which includes:
- IMPROVING YOUR BUSINESS MODEL
- UNDERTAKING A BUSINESS HEALTH CHECK & FINANCIAL PLAN
- IDENTIFY & PLUG FUNDING SHORTFALLS
REVIEWING YOUR BUSINESS MODEL
• Consider existing market conditions and the possibility of new markets.
• Consider options to rebuild income streams.
• Consider options to reduce costs and implement efficiencies.
• Consider alternative supply chain options.
• Consider potential for synergies with other businesses.
• Assess financial and operational risks.
• Identify and prioritise key strategic issues impacting the business.
• Consider any further contingency planning should severe lockdown measures be re-introduced or further potential disruption as a result of the UK’s exit from the EU.
HEALTH CHECK AND FINANCIAL PLAN
• Provide details of historical trading performance and financial position for the last three years.
• Consider short-term cashflow needs and impending liabilities as a result of reduced trading, tax deferments or loan repayment holidays.
• Consider the wider working capital cycle, credit terms in the industry, the need to hold higher levels of stock than normal.
• Consider the current standing of key customers and suppliers and the potential to insure the debtor book.
• Consider options around the asset base such as the ability to liquidate surplus assets, the potential use of HP and sale & leaseback of premises.
• Provide three-year projections, including monthly profit and loss, balance sheet and cash flow statements. Excel versions of these documents should be included in the final report provided to the business.
• Provide details of key assumptions used in the projections and evidence that the assumptions have been challenged.
• Undertake a sensitivity analysis on the key assumptions identifying impact of these on the projections.
IDENTIFY FUNDING SHORTFALLS / DEBT RESTRUCTURING
• The Strateguc Recovery Plan should equip businesses to approach potential funders to seek funding/investment if necessary.
• The plan will identify funding shortfalls and make recommendations
regarding attaining additional finance and/or restructuring existing finance.
• Recommending additional debt consider key banking ratios such as debt
service cover and the potential for promoters to make a meaningful contribution toward the financing needs of the business.
• Consider alternative funding options and the potential for equity investment.