How to deal with a financial setback
In the business world, there are bumps on the road and financial setbacks. In this situation, it is easy to panic and look for someone to blame.
Instead, the first action should be to devote time to looking at ways to return the top line and margin to its former strength. Whilst looking to cut costs may support some short term gains, this may damage the long-term structure and ability to recover – leave cost cutting until the top line review has been concluded.
I found more interesting tips about how to overcome financial setbacks on Forbes, where three experts offered the following advice:
1 – Sometimes cuts need to be made – What to cut? What not to cut? W. Michael Hsu, Founder and CEO of DeepSky, says that you can’t cut coffee and accounting. By coffee, he means small perks around the office. Do you want to irritate your team when you most need them to help take you out of the situation? Accounting is also an essential part of overcoming financial setbacks and you need it more than ever for a clear picture of what’s going on.
2 – Step back and reconfigure – Elle Kaplan, CEO and Founding Partner of LexION Capital Management believes that step back and reconfigure plans are essential when addressing a financial setback. ‘Avoid myopia by stepping back and evaluating when you should strategically prune an idea,’ she says.
3 – Focus on the future – firstly it’s necessary to turn off emotion during setbacks, suggests Fourlane President and CEO, Marjorie Adams. ‘Anytime we have a setback in business, it is easy to look for blame, feel anger, frustration or fear.’ She advises focusing on what needs to be done and move on.
Financial setbacks happen and we learn from them but it is always better to be prepared well in advance and to have a good accounting advisor on your side.
You may also be interested in
By Liza Robbins. Do you know the 2nd quickest way for your firm to grow? I know, I know. It
By Liza Robbins. Once a month, if you walk into the WeWork LaFayette offices in Paris, you’ll see a familiar
By Liza Robbins. Rich Howard had a client doing business in 5 countries. Because he had visited several of the
By Liza Robbins. “This programme was one of the reasons I sold my firm to you.” “I was able to
By Liza Robbins. When something isn’t running smoothly in your business, you might look in different directions for a solution.
On May 19, 2019, the Swiss Corporate Tax Reform was approved in a popular vote. Most of the new measures
By Kreston CEO, Liza Robbins. As you know, part of our long-term vision is for all Kreston firms to bear
By Kreston CEO, Liza Robbins. Let me ask you… When was the last time you went to a networking event,
The UK has recently released the first full year’s figures for the Diverted Profit Tax (DPT) – the so-called ‘Google
December 2018 saw changes in many tax regulations, to be initiated that month or in January 2019. These included:
The UK has previously set out a number of scenarios which might possibly reduce friction in terms of the customs
Why you should offer cybersecurity services to your clients (and an easy way to start) Cyber security, and the
By Kreston CEO, Liza Robbins. Kreston members – Did you catch my announcement earlier this week? Drumroll please… The Kreston
By Kreston CEO, Liza Robbins. How many times have you felt the pain of rejection from a potential client? You
By Kreston CEO, Liza Robbins. If you’re thinking of doing more business internationally, this probably isn’t the first region you
By Kreston CEO, Liza Robbins. How much of your business is taken by the Big 4? Losing out on business
By Kreston CEO, Liza Robbins. “We all want to grow to the level of the Big 4, but it’s difficult
By Kreston CEO, Liza Robbins. Benjamin Franklin supposedly once said: “If you fail to plan, you plan to fail.” But
By Kreston CEO, Liza Robbins. Last week I received an email from the chair of a large Kreston firm, telling
By Kreston CEO, Liza Robbins. “I was very attached emotionally to my firm, and it was difficult to let go.”
By Kreston CEO, Liza Robbins. ‘I should have started sooner’… We’ve all felt that regret. When you assess risk for
By Kreston CEO, Liza Robbins. Last week I left you with a question . When all your competitors claim that
By Kreston CEO, Liza Robbins. “We provide high-quality accounting and taxation services.” “Our mission is to provide top-quality financial advice.”
By Kreston CEO, Liza Robbins. Recently, a Kreston firm in Asia was looking to help a business they work with
By Kreston CEO, Liza Robbins. What’s the connection between muesli…. taxi cabs…. And Kreston? In theory, nothing! But in 2014,
By Kreston CEO, Liza Robbins. Over the past few weeks, we’ve been talking about what accountancy firms have to do
By Kreston CEO, Liza Robbins. For the past three years, the average annual growth rate of Kreston GCG in the
By Kreston CEO, Liza Robbins. Petra Uylen’s client had a problem. They needed a tax advisor, an accountant and a
By Kreston CEO, Liza Robbins. Since I became CEO last year, I have been visiting Kreston firms across the world.
Kreston member Duncan & Toplis is now an accredited centre for the Institute of Leadership & Management (ILM) and will
Irish accountancy firm BFCD recently moved from its existing accountancy association to join Kreston International. We spoke to partners Margaret
Kreston Iberaudit has updated its Spanish regional fiscal guides for 2019. You can access all the guides here: Fiscal Guide
By Elena Bargados Varela, Tax Manager at Kreston Iberaudit S.L. Due to the recent surge in the number of software
From 1 April most VAT registered businesses with turnover above £85,000 will have to file VAT returns through new Making
Author: Sarjit Singh, Executive Chairman at Kreston member firm, Ardent Associates LLP. The future of work is not just about learning a
By Andrew Griggs, Kreston Board Director and Senior Partner of UK member firm Kreston Reeves. In February, the Institute of
“The China One Belt, One Road is going to be the new W.T.O – like it or not.” These are
“A crushing, horrible, unfair disaster”. That’s how President Trump described inheritance tax; he aims to abolish it by 2025. Other
Artificial Intelligence (AI) has been garnering a lot of media attention of late. And for good reason – its potential
Earlier this month, the Senate voted in Donald Trump’s controversial $1.4 trillion tax reform bill by the narrow margin of
To say that there’s been a backlash against globalisation in recent years would be an understatement. From demonstrations in France
“May you live in interesting times” goes the Chinese expression. In fact, it’s actually more of a subtle barb to
Earlier this month, the Slovenian Prime Minister, Miro Cerar, stated that he “want[s] to position Slovenia as the most recognised
In the UK, they’re known as Generation Y, in Germany Generation Maybe, and China has labelled them as the generation
Rodney Sutton, head of manufacturing at Kreston Reeves, recently shared his thoughts on the UK manufacturing industry following the referendum
The adoption of international accounting standards has brought many benefits to the private and public sectors. This being said, there
Remote working is becoming a way of life for many professionals and the ability to work in a variety of
A common global language for business affairs, IFRS Standards are required by more than 120 jurisdictions in the world. Recently,
Automated technologies and artificial intelligence in our society will challenge many professions in the future. Some of them may be
Crowdfunding is still relatively new but should still be considered as a viable source of equity. Nowadays, it is providing
A legal amendment to the Finance Bill recently accepted by the UK government may pave the way for big changes
In the business world, there are bumps on the road and financial setbacks. In this situation, it is easy to
Day by day, technology is becoming an essential part of our lives, as the way we manage our financial life,
A new generation is coming to challenge the market. The Millennials make up a quarter of the US population and
Managing change is one of the biggest challenges for businesses as it requires a huge effort from managers and organisations
Sustainability reports are released by companies and organisations of all types, sizes, and sectors, from all over the world. A
Accounting is an indispensable tool for entrepreneurs to manage their business. The data provided by competent
Thinking about the risks involved in business has become an essential part of an enterprise’s strategy. Risk management enables organisations
When a business does not achieve its expected results, it may be time to think about implementing change. In these
The Financial Times recently reported the dispute in the courts between the UK supermarket chain Sainsbury’s and MasterCard. The Competition
For many, the accounting profession may not seem the most attractive in the world. But with technology and innovation at our hands, this is about to change.
By following these five steps, communication has everything it needs to flow better, regardless of where your business is located and where the people you
The need to go global is something that has emerged over the past decade and promises to challenge business for the next coming years.
Recently a considerable change in the SME market was announced through business news on the internet. The Big Four have
There are five topics that we must remember when dealing with working personal relationships in international business…
Slowly, one of the last socialist countries in the world is preparing to make changes to its economy, but how will this be done?
Developing countries attract the attention of investors by offering good opportunities and new markets, making them attractive for anyone thinking of expanding their
Through a mobile app, a small business can promote its brand, products, and services, expand its sales channels, interact with the target audience and get
Last month, experts at the Milken Institute Global Conference in Los Angeles looked at certain megatrends and predicted several economic scenarios for 2040 to
When a business does not achieve its expected results, it may be time to think about implementing change. In these