Let us take the stress out of Self Assessment
Get your tax return sorted by experts for only £200 £100+VAT!
Take the stress out of Sole Trader Accounting, for just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE
Boost your business finances with our Ltd Company packages! Award-winning software with support from expert accountants

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! May 23, 2024 1:30 PM

Financial Planning For Your Business In A Volatile Economic Climate

Man pointing at a graph
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

With inflation hitting record highs across the globe, labor shortages, supply chain issues, the pandemic, and more, financial planning for your business is no longer something you can go into half-heartedly. Approaching any investment with due diligence is key during periods of volatility, but there's also some other approaches to take that will all serve to safeguard your business in tough times.

While it's true that you can't predict which way the market will go, by planning for multiple scenarios and analysing historical movements, you'll be better prepared to captain your business through unexpected storms. 

It may seem difficult to maintain a realistic forecast or plan, however, being able to focus on multiple facets of the business can help you create a fluctuating plan that can withstand economic uncertainty. 

There are 3 important aspects that companies should keep in mind when responding to a volatile climate:

  • They should ensure they're measuring the right KPIs
  • Businesses should forecast with more frequency and accuracy
  • They should manage risk for competitive advantage

How to adapt your financial and operational planning for today's environment

We're all trying to navigate the numerous reality shifts that the Covid-19 pandemic has brought with it. Not to mention the supply chain crisis, rising interest rates, war, etc. These, among other factors, have triggered increasing complexity in the marketplace, causing financial teams to shift their ways from the more traditional planning methods to a more agile, flexible, and strategic way of thinking. 

Dive deeper into driver-based planning

This type of planning can help you be more agile in your planning and plan for granular-level details. By working to break down key business drivers, you can better predict how they will impact your financial and operational performance. It is valuable as it makes up for a lot of what traditional budgeting lacks in terms of scenario planning as it allows for adjustment in activity and resources. 

Use scenario analysis to predict potential outcomes

Scenario analysis allows you to better prepare for changes in your company's key activities and resources. This helps you prepare for a multitude of different scenarios such as worst-case scenarios, best-case scenarios, etc. to allow your business to take proactive planning measures to achieve its goals.

Look into rolling forecasts

Rolling Forecasts are a way to help you respond effectively and quickly to opportunities amid market changes. This report uses historical data to predict future numbers in order to project results for budgets, expenses, and other financials based on their past results.

Use collaborative planning

Collaboration between business leaders and budget owners can improve overall planning efficiency while increasing the value that your planning process provides. Collaborative planning will help you gain better insight.

Break plans into smaller steps

By breaking longer-term plans into smaller, more manageable steps you can better support your goals by allowing you to be more adaptable and agile. While you should still have your long-term plans in place, perhaps focus on how your short-term plans drive them. 

Tools to growing your business in volatile markets

While volatile markets may be stressful, there are ways in which businesses can grow. These can include attracting the right clients, emphasizing the company's value, optimizing client referrals., considering complimentary reviews, etc.

If you haven't already, you'll need to identify what your ideal client looks like. Begin by examining your most engaged, most profitable clients and identifying similarities between them such as personality, lifestyle, key traits, etc. This will help you more easily tap into and target the right audience for your business.

Market fluctuations also offer an opportunity for businesses to show that they are there for their clients, in the good as well as in the bad. This can help businesses connect and network more meaningfully and build brand trust. 

Do you get any client referrals? Well, when you do, be sure to express your interest in reaching out and try to obtain relevant details about the referral so that you can initiate contact around a talking point. This personalisation should help you do better when reaching out. 

And since many people welcome financial advice during uneasy times, you could even offer complimentary reviews to help your clients' contacts. For example, you could share advice and tips with them free of charge or offer a free trial, etc. to lay the foundations for a potential new business relationship.

In truth, while market volatility is scary, there are ways in which your business can leverage that uncertainty and instability to grow and take advantage of opportunities that other businesses may not have identified as yet or are too weary to take. 

However your company chooses to tackle its planning during this volatile market, there are specialised tools that exist that can make your life easier while saving your business valuable time and resources. While you may still be on the fence about whether to choose a specialised tool or stick to the traditional spreadsheet method, a huge benefit you can't ignore is the software's ability to integrate into your existing accounting tools.

For example, we at Crunch have integrated with forecasting tool, Brixx, to help you better plan for your company's future. By integrating with your existing records, you can better forecast ahead of time and compare your results with initial projections.

Haven't signed up with us yet? We are the UK’s most cost-effective online accounting service, with an award-winning Customer Service team and Chartered Certified accountants. Take a look at Crunch's free accounting software. 

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! May 23, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
Self Assessment tax returns done for you, from just £200 £100+VAT
Take the stress out of Sole Trader Accounting, for just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE
Boost your business finances with our Ltd Company packages!
Award-winning software
with support from expert accountants
Share this post
Updated on
June 16, 2023

Knowledge Hubs

Take control of your accounts, today

Crunch’s effective software package includes being able to talk to an expert client manager and a Chartered Certified Accountant. You can count on Crunch to make you productive and profitable.
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

Unlock Your Free Limited Company Expense Guide!

Expert Insights
Actionable Tips
Strategic Advice

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! May 23, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks
Pro Tip
Boost your business finances with our Ltd Company packages!

Award-winning software with support from expert accountants

Pro Tip
Take the stress out of Sole Trader Accounting

Just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE

Pro Tip
Get 50% off your Self Assessment

Get your tax return sorted by experts for only £100+VAT!

Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Pro Tip
Did you know - you have access to a Chartered Certified accountant for free on our paid subscriptions?

Book a call with our one accountants and get your questions answered. Just £24.50 +VAT for Crunch Free users.

Pro Tip
Get 50% off your Tax Return!

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £100 +VAT.

Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.