Safe Working - The overarching concern for any business must be to follow government advice on health and to ensure social distancing to address the health and welfare of yourself, your family, your team, and their families, as well as the clients. In this regard the priority should to follow the government land medical advice on social distancing and biosecurity to minimise exposure.
The Scenario Planning Tool is designed to help owners and managers assess your own business and individual circumstances. It allows you to quantify the impact and any losses arising from reduced turnover, changes in staffing levels and your current working arrangements.
You can use the Scenario Planner to predict financial outcomes for other scenarios for your own business. The outcomes can be used to develop strategic plans and identify Trigger Points where actions and interventions may be needed. Changes in turnover arising from different workload and throughput can be reviewed in context of changes in staffing levels.
What do you need to do to reach Break Even? What changes are need to reach a target profit figure under your new working arrangements?
If you have any questions on the Scenario Planner and how to use it please contact peter.gripper@anval.co.uk
Break Even & Target Profit Calculations
The impact of COVID19 will not be same across all businesses. Established businesses, larger practices, well capitalised practices with low gearing will be better placed to weather any storm, including this one. Young businesses, start ups, highly geared businesses and ones with significant borrowing will be more vulnerable.
The impact will not be same for each owner in the businesses. Their personal financial positions will vary. Some owners may have good personal assets levels and minimal debt whereas others may have limited cash reserves and high personal borrowing. Their ability to cushion any financial blow, drop in income or suffer a cash flow challenge will be very different. This may drive different agendas within the business.
All your employees will also be facing similar challenges to their own personal financial positions.
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