Risks: does your business have immunity? Economic risks (II)

Risks: does your business have immunity? Economic risks (II)

Rolandas Mištautas, Head of Law Firm KONSUS LEGAL

In a period of economic fluctuation, a country's economy experiences a weaker and shorter growth cycle. Therefore, prudent businesses need to budget their operations with pinpoint accuracy in the light of market developments, clearly planning their income and expenditure.

In this context, particular attention should be paid to overheads associated with increases in situational costs (e.g. assessing situational cost drivers such as the number of suppliers, etc.).

A large number of large businesses successfully apply this in their day-to-day practice and present it as a normal part of the conduct of their financial business. However, a closer look at the situations of medium and small businesses reveals that, perhaps due to the uncharitable perception that such things are not vital, these businesses avoid planning their income and expenditure with precision.

Failure to make careful financial planning and budgeting one of the top priorities of your business can often lead to dire consequences or (thank goodness!) financial losses.

Therefore, not only for large businesses, but also for medium-sized and small businesses, the advice and assistance of the relevant specialists can be particularly important, especially in these turbulent economic times.

And while a large business can relatively easily recruit a permanent team for its own needs, for medium and small businesses it is in many cases more financially advantageous and worthwhile to use external expertise, especially in legal, tax and other matters.

Updated: 2023-03-31