Planning for and analysis of different scenarios is essential for all businesses to ensure their future success – performing ‘what if’ scenarios can help business owners to better understand each financial decision or investment.
‘What if’ scenarios can improve the overall performance of your business by allowing you to plan for challenges and possibilities and meet your company’s growth objectives.
They can help to remove some of the uncertainty from your finances while providing the flexibility to take advantage of opportunities – if you are looking for a finance provider, they are more likely to fund your project if you can demonstrate that you have considered various key scenarios and their potential impacts.
By using ‘what if’ planning you can run scenarios using both real time and historical data and, by using appropriate software, you can identify potential future risks in minutes rather than waiting months, such as budget shortfalls and inefficient processes. You can also make quicker decisions without the need for endless meetings and discussions.
With cloud technology you can forecast forward with relative ease and plan for outcomes which directly impact the financial health of your business such as:-
- ‘What will happen to my results if I take on an additional member of staff?’
- ‘How will winning this new major contract with a customer impact my business?’
- ‘I have a price increase from my suppliers – how will this impact on my profitability?’
- ‘What if’ scenario planning is the most reliable indication of what can be achieved to give you the confidence to make informed business decisions and can be the key to future success.
To find out more about how ‘what if’ scenarios can help you improve business performance, please contact our Business Advisory Team on 0161 761 5231 or email theteam@horsfield-smith.co.uk.
