“Choose the future of your business”

Developments have been accelerating in recent years, which has resulted in increasing social and geopolitical pressure. For example, there are the yellow vests, climate activists, the nitrogen, corona and energy crises, the awakened movement, viral pressure combined with a restriction of funds and even the war in Ukraine. These are all things that can hit you hard as an entrepreneur, but which also provide opportunities, says Gerard Drogt from Flynth advisers & accountants in the contribution below.

We expect that such a development will only follow each other faster. As an entrepreneur, how do you keep your grip on your business, and how can you respond to this development?

Short-term choices
It is an open door to state that the right financial insight is needed to be able to respond quickly and efficiently to liquidity shortages or investment opportunities. For this purpose, Flynth has developed the online budget tool FlynthLink, which provides insight into your liquidity position at any time of the year via a link to your administration. This helps to make adjustments and to engage in discussions with stakeholders, such as financiers.

For example, we see that gardeners make the following choices in the short term based on their financial insights:

  • temporarily stop production and thus immediately save energy costs and / or take advantage of favorable energy positions;
  • (temporary) adjustment of the product range to achieve a better return;
  • invest in LED lighting to save energy costs or increase production.

Choose long term
Because development is so rapid, there is a great temptation to focus primarily on the economic consequences in the short term when making such choices. Whatever you choose, it is better to consider the long term for the future of your business. To connect with social developments, such as sustainability, and with your personal desires and ambitions. By making strategic choices about, for example, optimal company size, composition of your workforce, product management and partnerships, you can make your company flexible and robust.

Know where you want to go
At Flynth, we therefore advise you not to make drastic decisions now. First, take a step back and look at the situation from a distance. Ask one of our experienced advisors to think with you to calmly list possible scenarios. For example, you may be able to predict the tendency to run out of gas. First decide where you want your business to go, and then think back on the steps you can take to get there. You can then match this with your current strengths, weaknesses and abilities. This way, you make informed choices. For this we have developed the strategic consulting program Flynth Focus.

Several companies that have followed this path in recent years now seem to be able to cope with different challenges. They have:

  • invested in expansion, including geothermal energy, cogeneration and LED lighting;
  • formed an energy strategy based on risk management and consequently entered into multi-year energy contracts;
  • accession of the young generation realized;
  • formed a partnership with other companies;
  • crop conversion, for example from vegetable to potted plant;
  • implemented a name change of the company;
  • set up a professional marketing strategy;
  • designed after the interpretation of middle management with different expertise.

With a view to the future
Take social developments into account in your choices. See your product through the eyes of the consumer and look beyond your own business. For example, it may be worthwhile to work with like-minded companies that supply products to the same buyers. In this way you can form a block together, and you have more influence on the development of the chain. It is also advisable to follow trends with large customers. For example, make sure you are already meeting the sustainability requirements that retailers will require of their suppliers over time.
By acting on your own vision of the future, you can benefit from change. That way, you make a choice for the future.

For more information:
Gerard Drogt

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