How to Future Proof your Business

What do we mean by a "future proof" business?

A future proof business is one that is well-positioned to succeed in the future, regardless of the challenges and changes that may come. It's about anticipating and preparing for future changes and challenges and taking actions beforehand to mitigate their impact on your business. These challenges could be from:

economic downturns that may effect all businesses,
technological changes such as AI,
changes in your marketplace such as competitors introducing new products, licences coming up for renewal or new consumer trends.
changes in your business such as key staff retirements or the lease expiring on your business premises

Not all of the changes will be negative, so future proofing is also about making sure your business is ready to take advantage of opportunities as well as avoiding pitfalls.

Future proofing is a combination of mindset and preparedness.

How does the right "mindset" future proof your business?

Mindset means being adaptable, innovative, and responsive to the needs of customers and the market.

Under mindset we would include:

Investing in research and development. This is essential for staying ahead of the curve and developing new products and services that meet the needs of customers.

Emphasising innovation. This means being open to new ideas and willing to take risks. Businesses that are not innovative are more likely to be left behind by their competitors.

Being responsive to customer needs. This means listening to what customers want and need, and then developing products and services that meet those needs. Businesses that are not customer-focused are more likely to lose out to their competitors.

Being adaptable to change. The world is constantly changing, and businesses need to be able to adapt to those changes in order to survive. This means being willing to change business models, strategies, and even products and services as needed.

Building a strong team. A strong team is essential for any business, but it is especially important for businesses that want to be future proof. A strong team is one that is made up of talented and dedicated individuals who are committed to the success of the business.

Build a network. Having a strong network of friends, family, and colleagues can be invaluable in times of need. Referrers, cheerleaders, supporters etc. A mentor and advisors. Make an effort to connect with people from different walks of life, and build relationships that you can rely on.

Stay informed. The more you know about the world around you, the better prepared you will be for whatever comes your way. Read newspapers, magazines, and blogs, and watch the news. Talk to people from different walks of life, and learn about their experiences.

What do we mean by "preparedness"?

Preparedness is about building security.

Under preparedness we would include:

There are many reasons why it is important for a future proof business to retain cash and build reserves. Here are a few of the most important:

To cover unexpected expenses. No business is immune to unexpected expenses, such as natural disasters, equipment failures, or lawsuits. Having a cash reserve on hand can help businesses cover these expenses without having to borrow money or dip into their operating budget.

To take advantage of opportunities. When a good opportunity comes along, businesses need to be able to act quickly. Having a cash reserve on hand can give businesses the financial flexibility they need to take advantage of these opportunities, even if they are not immediately profitable.

To weather economic downturns. Economic downturns can have a devastating impact on businesses, especially small businesses. Having a cash reserve on hand can help businesses weather these downturns and stay afloat until the economy recovers.

To improve creditworthiness. Banks and other lenders are more likely to lend money to businesses that have a strong financial history and a healthy cash reserve. Having a cash reserve can help businesses improve their creditworthiness, which can make it easier to get financing when they need it.

By retaining cash and building reserves, businesses can improve their financial security and position themselves for long-term success.

How do you go about building reserves and retaining cash?

Obviously as accountants we have some tips for businesses that want to retain cash and build reserves:

Create a budget and stick to it. One of the best ways to retain cash is to create a budget and stick to it. This means tracking your income and expenses, and making sure that you are not spending more money than you are bringing in.

Pay down debt. The more debt you have, the less cash you will have on hand. Make a plan to pay down your debt as quickly as possible.

Invest in your business. When you invest in your business, you are essentially investing in your future. This could mean investing in new equipment, marketing, or training for your employees.

Save some money each month to cover unexpected expenses. This could be a rainy day fund, or a separate account for unexpected expenses.

How can Wood and Disney help you retain cash and build reserves?

To help our clients build cash reserves and retain cash Wood and Disney have developed a Strategic Cash Retention Programme. It starts with having a strategic plan and setting goals so you stay focused on retaining cash. By understanding where your money is being spent you regain control and can either reduce/eliminate any borrowing or build cash reserves to achieve financial freedom. You can find out more about how Wood and Disney build cash reserves in your business on our Cash Flow Solutions page.

If you are struggling to retain cash or build reserves, talk to us. We can put the systems and controls in place to build strength in to your business by developing a cash reserve to see you through the hard times and build financial security into your business operations and personal finances.

Is your business future proof?

Take our FREE, FUTURE BUSINESS ASSESSMENT to find out how future proof your business is!

It's multiple choice, easy and quick to complete and you'll receive a personal PDF report with detailed feedback on what we can do to improve your business longevity and resilience.

Talk to us to find out how Wood and Disney can help you future proof your business

Don't be afraid to ask for help. If you are concerned about the future of your business or your own financial security then get in touch. We can help you create a plan to improve your financial situation today in anticipation of the uncertainties which will inevitably come your way.

Call us on 01206 233170 or message us below and we'll get back to you .