To scale up or downsize your business? Check the forecasting

Are you looking to either upsize or downsize your business? The post-Covid, globalised economy has created a number of challenges for the average business.

Depending on your business purpose and strategy, you may need to either upsize, or downsize. This is to secure the long-term future of your company.

But what are the implications of scaling up, or scaling down, your operations? And how do you refine your business so it’s fit for purpose and ready to take on your new aims and goals?

The answer is to look carefully at your forecasting and your future decision-making.

Looking at the ongoing needs of your business

Our experiences of the pandemic have demonstrated one very clear lesson – you never know exactly what lies around the corner for your business. But the more prepared you are, the better you can respond, as and when new threats and opportunities do appear.

With this in mind, forecasting and scenario planning can be exceptionally important tools.

Rather than crossing your fingers and hoping for the best, you can plan for two, three, or more different outcomes – with different strategies and tactics for each separate scenario. You can’t bullet-proof your business, but you CAN make sure that you at least have a Plan B (or C).

Scaling up, or scaling down?

By making constructive use of forecasting, you’ll be able to see the most viable path for your business. From here, you can make a decision on whether scaling up or scaling down, is the most appropriate action for the long-term health of the company.

Some key questions to ask during your decision-making may include:

Do you have enough funding to grow, or do you need to downsize? 

Knowing how much working capital you have available in the business is a vital piece of information. If you have a healthy balance sheet, a workable funding strategy, and access to lenders, you’ll be able to fund your growth. If your cash reserves are depleted and access to finance is limited, now may be the time to shrink the business and consolidate things down – helping you to survive to fight another day, even if it is at a reduced scale.

Do you need more, or fewer, employees? 

If your market share has dropped, you may need to downsize your team. And if you’ve hit a winning streak of sales, you may need to upsize your workforce to meet demand. Look at what resourcing you need and the types of skills, capabilities and long-term knowledge you need from your team in order to meet your new goals and targets.

Do you need to train your existing people? 

If your business purpose has evolved, or you’re moving more into the online or digital arena, you may need to train up your staff. Upskilling your people helps to bring them more in line with modern digital business practices, software and online customer interactions, all of which helps to increase your operational capabilities and your customer service levels as a business.

Do you need the same number of branches/shops/offices? 

If you’ve instigated remote working or hybrid working, you may not need so much office space for your people. And if you’ve moved a lot of your business to online selling, fewer bricks-and-mortar outlets will be required. Cutting building lease costs and/or commercial mortgage expenses can be a serious cost-saver for the business. Conversely, if you’re aiming to scale up, it’s likely that larger premises will be needed – resulting in higher property costs, but increased income from your scaled-up operations.

Do you need new equipment, machinery or vehicles? 

Knowing what tangible assets you need in the business is an important part of your new business plan. If you’re expanding your operations, new equipment and/or vehicles will be needed to meet the new demand. This is likely to mean taking out third-party finance or digging deep into your cash reserves. If you’re downsizing, there’s potential to sell off existing equipment and assets and to free up this equity for other projects in the business.

Talk to us about scenario planning and decision-making

If you’re in the process of evolving or changing your business purpose, feel free to reach out. We can help you review your existing business plan, run scenarios and forecasts, and look at the long-term future path of your business.

And just in case you wonder how we can assist, check out our list of services here.

The Ultimate Bookkeeping Impact Checklist: The Top 22 Ways To Know If It’s Time To Level-Up Your Bookkeeping Support Team So You Can Achieve More Of Your Purpose

Is your current bookkeeping and finance
team helping you achieve more of your
organisation’s purpose… or are they holding
you back?

With the help of this quick checklist, you can stop
guessing and see for yourself what business could
look like with the right purpose-driven bookkeepers
on your side. Download it now for FREE to get started!

Download Now for FREE:

The Ultimate Bookkeeping Impact Checklist

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We’ve Helped These Clients Focus Less On Their Finances, And More On Their Purpose

Here’s what they had to say:

We have had an enduring
relationship because Clare goes
beyond being just a “service
provider”.

The team at Purposely are always
invested in my clients and my own
organisations success. They partner
with their customers, accountants
and auditors to deliver tailored
solutions and they are always
proactive in their approach. If you are
looking for dedication and a long-
term partnership, these are the guys
for you.

Varis K.

VLK Accounting

We engaged with Clare and the
team to bring our organisation
into the cloud and we haven’t
looked back since.

It’s now 4 years down the track and
the Purposely team continue to
provide such an invaluable service to
our business. They understand the
complexities of working with remote
organisations and they handle
everything we need with the greatest
sensitivity. From bookkeeping, to
payroll to assisting us with all our
audit queries. They have changed the
way we operate for the better.

Anna and Steve H.

Noonkanbah Aboriginal Corporation

Purposely has looked after my
business for a long time now and
I am very happy with the service.

They are very professional and I know
things are always up to date. Clare
and her staff are great to deal with
and I trust them, that’s important. I
would not be in business today if I did
not find them.

Les R.

Quic Dig (WA) Pty Ltd

Nothing is too much trouble!

I have never felt so supported in
business… Since joining forces with
Purposely, I have become more
financially aware, have a much better
understanding of my own business
and my cash flow has improved
tenfold. [They] really have my
business’s best interests at heart.

Kellie G.

A* Star Cleanings

Purposely have been 
(and remain) invaluable to us in
making sure that this part of our
business is handled efficiently 
and with careful attention
to detail.

Paying our casual workers on time is
critical to the success of our business.
Mistakes and delays are not easy to
absorb in a small business and it’s a
great comfort to us that Purposely 
feel the same way. Timely, accurate
advice to help our business run
smoothly!

Dirima C.

Dortch & Cuthbert Trading Trust

The integrity of the Purposely
team is beyond question and we
know we can always rely on them
to prioritise the best interests of
our organisation.

Marrugeku engaged with Purposely in
2017 to handle all our bookkeeping
and payroll requirements. They
consistently show up, week in week
out with efficiency and good humour.
Even during the challenging times
faced by the entertainment industry
due to COVID-19, Purposely supported
us all the way. The Purposely team
work hard to manage the complexities 
of payroll for staff in Live
Performance. And each year they
strive to achieve a smooth audit, 
showing their dedication.

Guy B.

Marrugeku Inc.

The team at Purposely has been
a crucial resource to our
business. When we first started
working with them our books
needed dedicated attention.

Purposely did an amazing job at
bringing them up to date, making
things tidy and accurate. The team is
always reliable and consistently get
the work done. While their persistent
reminders may sometimes feel like
hounding, we recognise that it is
precisely what our business needs.
We highly recommend them for their
professionalism and commitment to
delivering results.

Holly G.

Cameron Herbert Constructions Pty Ltd

I have been working with
Purposely for a couple of years
now and in this time the team
has shown significant support to
me and my business.

Their technical expertise has helped me get my business in order leaving me to focus on what I do best. They communicate on a weekly basis so I know where things are at and what is yet to be done. Everything is completed and lodged on time and in full. I trust that they handle my data confidentially and would recommend them to anyone who is seeking the “next level” in terms of a bookkeeper.

Luke D.V.

Swat Suspension Wheel & Tyre Pty Ltd

I’m an exercise physiologist,
extremely busy and very
successful and wouldn’t be
where I am today without the
help of Purposely.

They have saved me a lot of time and
money helping my business to become
more streamlined and efficient, which
has saved me a lot of stress. I would
highly recommend Purposely as they
are very professional and very easy to
deal with.

Chris A.

Chris Anastasios Exercise Physiology

We have been working with Clare
and her team for the last 6 years.

Our initial contact with them came
from the difficulties we faced in
integrating our point of sale system
with our accounting software. We
required someone with technical
expertise to fix this issue, and Clare
immediately got on with the job. Since
then, Clare and her team have shown
commitment to adapt to our evolving
needs and implement effective
systems and processes, all of which
have contributed to enhancing our
overall operations.

Vanessa A.

Think Water Broome

We had no second thoughts on choosing Purposely.

My biggest pain point was not having clarity on the business financials from the previous bookkeepers. It was frustrating to try to communicate with them regarding anything. That’s when we found Purposely (Clare), our first impression was she was very professional and knowledgeable on what she does. We now have clarity, trust and good communication whether it comes to processing the payroll or bookkeeping or even sorting out the invoices. Clare and her team are always there to support and help and simplify things for us.

Bikram P.

Dragonfly Cafe

We have been dealing with Clare and Purposely for over 4 years because they handle the bookkeeping for one of our clients.

We can thoroughly recommend them to anyone that needs an efficient, accurate and easy to work with bookkeeper. We have always found their work to be of the highest quality.

Peter W.

Accounting on Tap Pty Ltd

I have nothing but praise for Clare & the team, they have always bent over backwards to help.

Myself & my business have been involved with Purposely for many years now after our internal Book-keeper decided to retire & suggested I look into what was/is Purposely. Purposely are Kimberley locals & understand how difficult it can be working remotely to run a business in this part of Australia. The team adapted to my requests & business style very quickly and I have to admit I haven’t always been the easiest person to work with due to the remote nature of our work & my lack of computer skills. GND will continue to use Purposely for the foreseeable future of our business.

Sam C.

Great Northern Demolition Pty Ltd

Since we started working with Purposely in 2018, we’ve witnessed their unique approach to bookkeeping which sets them apart.

Their commitment to due diligence and technical expertise exceeds the standards of traditional bookkeeping models. Their thoroughness extends beyond skilful application and experience, encompassing excellent communication with both clients and their accountants/auditors. With an experienced staff member always at hand, they provide a reliable asset to any organization fortunate enough to collaborate with them. Purposely offers an outstanding solution for organizations seeking outsourced financial management, whether it be for partial or comprehensive support.

Desiree M.

Male & Co

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