You might even say that perception is everything!
How we perceive things, life, people and events determines how we react to them.
Take the current covid-19 issue.
Tired of a daily (overwhelming) diet of corona? Depressing isn’t it? Everywhere you turn – on every news channel, everywhere you go – a constant reminder.
Personally, I find it just too much. Constricting mentally and physically – to say nothing about financially!
But remember – It’s all up to you! – yes you decide! – you are the captain of your ship!
You can choose to look down – or look up!
So what to do? – let the daily diet of death and damnation determine your future – or take charge and look to the future – to life after corona.
Let’s be honest – not much of a choice!
So what can you do to improve your future?
The full extent of the economic impact of covid-19 will not be determined for some time to come – but it is safe to say that it will change our lives, change the way we work and the opportunities for work.
In my recent webinar I attempted to categorise the impact on businesses. I am hardly an economist, and simple commonsense dictated my thoughts.
I think it is safe to say that the manner and speed of reaction will be directly related to the impact on the business – its degree of severity. I split the impact into five categories namely:
- Catastrophic – Survival – crisis – keep afloat at all costs – many businesses will not survive
- Major challenge – requires a completely new approach – discard current business model – and have financial resources to change
- Significant challenge – possible to adapt – review / adjust / variations on the theme
- Business as usual
- Opportunities – expansion – new products – re-direct resources – expansion – acquisitions
Sadly, I am sure the demand for liquidators, business rescue practitioners and turnaround specialists will be significant in the foreseeable future.
So, what can Goalfix do for you? – personally, for your business or for the company that employs you?
Everyone with a modicum of business experience knows that even a successful management team can be caught unawares – or make a mistake – once, but to repeat it is quite unforgivable.
So don’t be a victim of the proverb “Fool me once, shame on you – fool me twice, shame on me”
How can we help?
By helping you to build an efficient, flexible predictive financial model – or building one for you – to help you navigate the unexpected challenges that can confront you – often without warning.
An interactive model which can help you identify risk, identify sensitivities and answer questions such as:
- What are the most sensitive drivers of my business ? – Volumes, margins, variable or fixed costs, debt, interest, working capital, capital employed?
- What turnover do I need to break-even?
- What cash flow is available to service debt – CFADS?
- What is the dividend capability based on net cash flows?
- What are the key drivers of RONA / ROCE / ROE?
- What annual compound growth rates are achievable?
- What effect will growth have on working capital, cash flows and RONA / ROE?
- What is sustainable growth rate without raising more debt or capital?
- How will gearing (leverage) affect shareholder returns (ROE)?
- Is the business outperforming the WACC?
If you want to explore the possibilities, give Goalfix a call or send us an email.