Trending...
- DCAS College opens new Representative Office in Malaysian Capital Kuala Lumpur
- GMO Miner: Creating a simple, efficient and reliable new cloud mining experience
- purelyIV Blog Named One of the Top 45 IV Therapy Blogs by Feedspot
BOSTON - PrAtlas -- In business, there are many factors we cannot control. The continued changes in U.S. tariff policies are one such factor on which business owners can only anticipate and monitor. As these new tariffs are being implemented, it is imperative companies prepare their budgets, notify their customers, and evaluate their production systems to bolster the company against any financial impact the new policies may have.
One of the tools New England Consulting Partners (NECP) recommends to all our clients is a 13-week cashflow model. "Anticipating and preserving liquidity is the key component in navigating your company through uncertain times," explains Thomas V. Desmond, Founder-Managing Principal of NECP. "Creating and maintaining a 13-week cashflow model should be standard operating procedure for every company regardless of size, in both stable and uncertain times," he continues. A company's financial outlook is an instrumental metric that aids businesses in allocating their liquid assets for each quarter. It is important companies look ahead at least 13 weeks and account for incoming cash as well as cash on hand at any given time. Monitoring expenses and expected receivable collections is the cornerstone of effectively managing a business. Without a 13-week cashflow model, business owners and financial officers are in the dark about where the company stands financially in real time, especially as expected costs increase as an effect of ongoing tariff fluctuations.
More on PrAtlas
To properly adjust cash flow projections, we recommend staying in communication with critical vendors that provide your company with the raw materials and services necessary to sustain the operation of your business. "Companies should be prepared to respond to sudden and arbitrary price increases. Arbitrary in the sense that the cost of any item could increase suddenly. In addition, principals need to understand how tariffs could affect the overall supply chain. For example, will a sudden increase in a particular cost adversely affect not only what you can bring into the company, but what you will be unable to bring into the company because your supplier cannot deliver? The concern must be operational and quantitative; we are not just dealing with the effect of a price increase," Desmond explains.
Ultimately, all price increases must "find a home" by either being passed along to the customer or cutting expenses. Business owners may need to provide additional equity infusions to fund the losses and should be prepared to do so if necessary. As a reminder, owners must always have positive cash flow to run a company, and cost increases cannot be ignored. However, it's important to state that business owners should not panic during times of uncertainty. In our experience, when governmental changes are put into effect, the economy ultimately finds an equilibrium to move forward. The global economy is resilient. Eventually, it reacts to changes and leaves businesses on more solid ground as markets settle into a new normal.
More on PrAtlas
For more business insights or further assistance, please visit NEConsultingPartners.com or contact us.
One of the tools New England Consulting Partners (NECP) recommends to all our clients is a 13-week cashflow model. "Anticipating and preserving liquidity is the key component in navigating your company through uncertain times," explains Thomas V. Desmond, Founder-Managing Principal of NECP. "Creating and maintaining a 13-week cashflow model should be standard operating procedure for every company regardless of size, in both stable and uncertain times," he continues. A company's financial outlook is an instrumental metric that aids businesses in allocating their liquid assets for each quarter. It is important companies look ahead at least 13 weeks and account for incoming cash as well as cash on hand at any given time. Monitoring expenses and expected receivable collections is the cornerstone of effectively managing a business. Without a 13-week cashflow model, business owners and financial officers are in the dark about where the company stands financially in real time, especially as expected costs increase as an effect of ongoing tariff fluctuations.
More on PrAtlas
- Mortgage Rates And Demand Are Stuck In A Holding Pattern
- Coker Completes Acquisition of Healthcare Cost Solutions, a Leading Expert in Technology-Enabled Compliance Services
- Keepy Uppy™ by Ollyball Wins Prestigious 2025 Influencer Award from Clamour & The Toy Association; Announces Fall 2025 Launch at Target Stores
- K2 Integrity's U.S. and EMEA Teams Recognized in Chambers and Partners 2025 Guides
- A rare chance to own a multi-family property in the heart of Bay Ridge
To properly adjust cash flow projections, we recommend staying in communication with critical vendors that provide your company with the raw materials and services necessary to sustain the operation of your business. "Companies should be prepared to respond to sudden and arbitrary price increases. Arbitrary in the sense that the cost of any item could increase suddenly. In addition, principals need to understand how tariffs could affect the overall supply chain. For example, will a sudden increase in a particular cost adversely affect not only what you can bring into the company, but what you will be unable to bring into the company because your supplier cannot deliver? The concern must be operational and quantitative; we are not just dealing with the effect of a price increase," Desmond explains.
Ultimately, all price increases must "find a home" by either being passed along to the customer or cutting expenses. Business owners may need to provide additional equity infusions to fund the losses and should be prepared to do so if necessary. As a reminder, owners must always have positive cash flow to run a company, and cost increases cannot be ignored. However, it's important to state that business owners should not panic during times of uncertainty. In our experience, when governmental changes are put into effect, the economy ultimately finds an equilibrium to move forward. The global economy is resilient. Eventually, it reacts to changes and leaves businesses on more solid ground as markets settle into a new normal.
More on PrAtlas
- LA Laura Paris Drops Underground Girl Remixes
- Nationally Recognized Hispanic Activist and Businessman, Luis Figueroa, to speak at CPAC Latino 2025, Showcasing Hispanic Leadership in Action
- Holiday Inn Express North Hollywood Burbank Area Announces Conversion to Hampton Inn North Hollywood
- Pray the News Launches to Transform American Christians' Relationship with News
- The ITeam Ranked on Channel Partners 2025 MSP 501—Tech Industry's Most Prestigious List of Managed Service Providers Worldwide
For more business insights or further assistance, please visit NEConsultingPartners.com or contact us.
Contact
New England Consulting Partners
Thomas V. Desmond, Founder-Managing Principal
***@neconsultingpartners.com
617-573-5039
New England Consulting Partners
Thomas V. Desmond, Founder-Managing Principal
***@neconsultingpartners.com
617-573-5039
Source: New England Consulting Partners
0 Comments
Latest on PrAtlas
- AI Meets Cybersecurity: IQSTEL and Cycurion Take Aim at $500 Billion Market Opportunity
- N A S D A Q Compliance Achieved Following Active Trading and Financing, UAE Acquisition & Major Brand Events: Lottery.com Inc., (N A S D A Q: LTRY)
- New Frontier Aerospace Successfully Tests Its Revolutionary Mjölnir Rocket Engine
- Profiting from Elder Harm: The Push to End Psychiatric Drugging in Nursing Homes
- LET Mining launches zero-cost cloud mining, daily rewards + referral double benefits
- Veteran-Owned Small Business Trapped in Amazon Seller Catch-22 Over Fraudulent FBA Partner
- Red Carpet Screening of "Ghosted" Featuring Landon Brittain at the Samuel Goldwyn Theatre
- Anti-war groups protest vs US-NATO actions in Gaza, Iran, the Global South
- Dr. Jacqueline West Honored as Best Dentist in JAX by Folio Weekly
- Exciting News: Pivotal Health Solutions Acquires Revolutionary Portable Parallel Bars
- Miboxer Achieved New Goal in GILE 2025
- Jeopardy!'s Ken Jennings Headlines National Mensa Event
- Mensa Foundation Prize Awarded to Neuroscientist-Pianist
- New book, "High-Tech Heroes," redefines billionaire as someone who improves a billion lives
- Durex Products Wire Cloth Screen Media: Engineered for Maximum Performance and Durability
- OPRAH.COM Featured Award-Winning Novel AS FAR AS YOU GO BEFORE YOU HAVE TO COME BACK now Available as Audiobook
- How Kallie Boxell Helps Texas Companies Solve the Talent Equation
- KeysCaribbean Vacation Home Rentals Offers Last-Minute Booking Discount of 15 Percent
- purelyIV Blog Named One of the Top 45 IV Therapy Blogs by Feedspot
- purelyIV Launches Mobile Iron Infusion Therapy for Patients with Iron Deficiency Anemia