Using Scenario Planning to Protect Your Business During Covid Recovery
Author: Matthew Williams, LHP Managing Director
Based on Covid recovery, Brexit price hikes, and approaching Corporation Tax rate increases (2023), it’s time to start future-proofing your business.
At LHP, our wide range of accounting, taxation and advisory services, means that you can benefit from our tax planning and business growth strategies.
Whether you trade on your own, in a partnership or through a limited company, using scenario planning as part of your account management can be very helpful, particularly with the uncertainties of 2020 and 2021, and looking ahead to 2022 to 2023.
What is scenario planning?
Scenario planning involves mapping out a range of situations with a ‘what if’ analysis, to realise future strategies to gain success.
We will also use scenario planning in order to mitigate risks for your business. The planning process aims to help you forecast critical uncertainties that have the potential to affect your company in the long run.
From this, you can develop plausible scenarios for potential impacts and responses for each one of them. The point is, if you are aware, you can deal with them better if and when they happen.
Some of these business uncertainties include:
- commodity price
- lifecycle of the product
- government regulations
- natural disasters (such as Covid)
- shifting business location
Example strategies include:
- increasing sales
- increasing prices
- reducing expenses
You may find from doing the planning, that increasing your prices (for example) is more profitable for your business than additional marketing, or reducing expenses based on your suppliers.
With Brexit, there is a hike in prices in the supplier chain to accommodate. If you know that your prices will rise or have risen, have you mapped out how that will impact you?
We advise you talk to us at LHP about scenario planning, to reduce the emerging risks and spot potential emerging opportunities as part of your business finance planning.
Talk to us
If you need help with any of the above, our experts at LHP are here to help you plan for the future…we have the tools to help you prepare for potential costs and tax hikes.
With over 70 staff based in 5 offices across South Wales and over 85 years’ experience in helping businesses thrive, adapt and grow, you are in safe hands. Let’s talk.