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How Can Your Business Weather The Storm Of 2023?

The Business Godparent can be your lighthouse ...


Posted by Roger Eddowes on 23/01/2023 @ 8:00AM

The past few years have been anything but normal for businesses across the UK and the world. The Covid-19 pandemic has brought unparalleled levels of disruption and financial uncertainty to businesses of all sizes and sectors ...

Reach out to The Business Godparent if you need me to be your lighthouse!

Reach out to The Business Godparent if you need me to be your lighthouse!

copyright: piro4d / pixabay

Not only did it cause widespread closures and loss of revenue, but it also created a domino effect of challenges that followed, such as the war in Ukraine, disrupted supply chains, staff shortages, rising energy bills and the threat of an impending recession.

"Many company directors are entering 2023 with
a sense of trepidation!"

The already uncertain economic and trading landscape is made even more difficult by a large amount of debt in the form of CBILS or Bounce Back Loans. However, there are steps that businesses can take to put themselves in the best position to weather the storm.

  • Take stock of the situation

    A cash flow summary will establish how much money is leaving and entering the business. This is a great starting point from which to determine if your company is in the position of being able to meet its outgoings as and when they fall due and, if not, give a sense of the shortfall the business is up against.

    Being brutally honest about your short-term outlook could mean admitting the business may be in difficulty. While this is a tough thing to do, it is actually the best starting point for turning the situation around.

  • Talk to creditors

    Although a director can sometimes feel like they are on their own in the difficulties they are experiencing, rest assured you are not. Even those companies who have not been impacted will be well aware of the struggles others are facing, and would much rather know your position rather than having requests for payment ignored.

    Keeping a line of dialogue open with your creditors can be extremely useful in helping to smooth negotiations further down the line.

  • Talk to debtors

    As well as monitoring money leaving the business, it is also necessary to keep a very close eye on money coming in. If you have customers who owe your company money, you need to ensure that collection processes are as robust as they can be.

    You should remain in contact with debtors and chase for payment where appropriate. Knowing which of your customers are in a better position to pay can help you focus your efforts and maximise returns.

  • Streamline the company

    Undergoing a streamlining process can help to cut waste and boost your cash flow. Taking a strategic look at a company's operations will highlight any underperforming areas which may be having a detrimental effect on the business as a whole.

    Divesting your company of these unprofitable areas will allow money and manpower to be diverted to more profitable areas instead.

  • Keep staff updated

    As much as you may want to hide the company's problems from your employees, it is highly likely that staff will be aware that the business is facing certain challenges. Staff worried about job security are unlikely to be working at their most productive level, so it may be advisable to reassure them if the situation becomes obvious.

    Ensure that paying wages is prioritised and keep staff updated if any changes occur. The alternative is that valuable, hard-to-replace staff may seek employment elsewhere, compounding the problems for the business.

  • Assess any outstanding finance

    You should look at the level of current loan repayments and make a note of when fixed loan repayments come to an end. Consolidation of loans may be appropriate, or even shopping around for cheaper finance options.

In conclusion, it is important not to ignore problems. When it comes to company distress, the sooner action is taken, the more options will be available to provide help. There is a range of business rescue and recovery options that can be used to turn your company's fortunes around.

Reach out to The Business Godparent if you need me to be your lighthouse.

Until next time ...

Business Godparent


Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about weathering the storm of 2023, it may be a great idea to call me on 01908 774320 and let's see how I can help you.

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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.