We are living during a period of trying, uncertain times. The current outbreak of the Coronavirus disease (COVID-19), has had a significant impact on the way we go about our daily lives. From how we work, to how we live, to how we relax, no aspect of our lives has gone untouched. With a potential recession on the horizon and so much unknown about how we will move forward as a society, what does that mean for your business? Now more than ever, you will want to turn to your financial advisor to help you come with a plan.
Why Your Financial Advisor Is Essential in Times of Uncertainty
1. They keep you informed on current events and developments.
Changes can happen quickly in this time of global crisis. The government may implement policies to help provide relief for taxpayers. Your small business may be eligible for special incentives that were not previously available.
Your financial advisor can help to keep you aware of these changes, keeping you aware of your options. Changes that result in fiscal policy relief for taxpayers will likely result in new deadlines to comply with any resulting reporting changes.
2. They can oversee both your business and personal finances.
Turbulent times will not only impact your business, but your personal finances as well. Your financial advisor can work with you to set up a plan for your business and a plan for your family finances. This can provide you with the peace of mind that both your company and your loved ones will stay protected no matter what lies ahead.
3. They’ll help you manage cash flow.
The Coronavirus disease (COVID-19) is impacting the way that people go about our daily lives. Large events are being canceled, travel has become restricted, and even schools are being closed for the foreseeable future. If your small business is in a related industry (or even an indirectly related one), you may already be experiencing a negative impact on your bottom line. Your financial advisor can help you create a plan to curb expenses and evaluate income projections to help you keep your business moving forward.
4. They’ll save you time and money.
Now more than ever, your focus needs to be on the best way to keep your daily business operations stable. Allowing your financial advisor to take the reins of your financial situation will not only save you lots of time, but also provide you with peace of mind that your business economic affairs are under control.
5. They can help you plan for emergencies.
The developments related to COVID-19 outbreak are happening so quickly that no one can anticipate what tomorrow will bring. Your financial advisor can help you to establish sources of emergency funding that may be needed to help your business operations through loans, grants, or other funding sources. They can also help you to prepare the financial statements and other documents that may be necessary as a part of the application process.
What Can I Do to Prepare My Business Now?
With economic uncertainty on the horizon, here are a few things that you can do now to prepare yourself and your business.
Look for Additional Revenue Streams
Are there ways that you can diversify your business to bring in additional revenue? Can you offer a new product or service that is a complement to what you already have?
Do any of your clients make up a significant portion of your business? Now might be the time to look into bringing on new clients or expanding into new markets to help reduce your risk should you lose a major account.
If you have a significant debt load, the effects of a recession could magnify the impact on your business. If you have cash on hand, look for ways to create an emergency fund, while also working to reduce your debt load. Taking action now can help to avoid getting behind on payments or even bankruptcy should the market take a downturn.
While uncertainty can make you nervous, it does not have to be a cause for alarm. Having a financial advisor on your side to help you navigate the unknown can help to ease your mind, allowing you to focus on running your business.
If you have any questions regarding the impact of the Coronavirus disease (COVID-19) on today's current financial situation or you would like to learn more about our services and how we can help, please feel free to contact us for more information.
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