--- title: Are You Ready for a Business Boom? | SVA CPA description: As the number of vaccinated people increases, experts believe a business boom will impact companies in the near future. Is your business ready for this? --- [Biz Tips | SVA Certified Public Accountants ](https://accountants.sva.com/biz-tips) # [Are You Ready for a Business Boom? | SVA CPA](https://accountants.sva.com/biz-tips/is-your-business-ready-for-a-business-boom) Written by [Daniel Glomski, CPA, ABV, CVA, MST](https://accountants.sva.com/biz-tips/author/daniel-glomski) | Apr 21, 2021 We may be on the verge of a new business awakening as vaccine numbers rise and pent-up consumer demand unfolds. ## *Ready For a Business Boom?* ### What the Experts Say: #### Nationally: The [Livingston Survey](https://www.philadelphiafed.org/surveys-and-data/real-time-data-research/livingston-2020-12) is projecting a 2.9% annualized growth over the first half of 2021 and a 3.7% growth rate in the second half of the year. They forecast a steadily decreasing unemployment rate from 6.7% in December 2020 to 5.5% in December 2021. #### Locally: The [Metropolitan Milwaukee Association of Commerce's (MMAC) quarterly Business Outlook Survey](https://www.mmac.org/business-outlook-survey.html) provides these insights: - 70% of businesses surveyed foresee real sales increases in 2021 - 88% of metro-area companies see business operations back to normal sometime in 2021 ### Are You Ready? As we are coming out of winter hibernation, it's time to prepare your organization to take advantage of a potential business boom. We don't know exactly how big or how long that business surge will be, but one thing is for sure – you need to be ready, willing, and able to serve your customers, which means looking around the corner. Possibly even stepping around it! To prepare for a surge in growth, there are three areas business leadership should give serious consideration: 1. Capacity 2. [Cash Flow](https://accountants.sva.com/biz-tips/the-importance-of-cash-flow-cash-flow-analysis-sva-cpa) 3. Supply Chain ### Capacity Matters Capacity planning involves looking at the maximum amount of sales you can take with the existing resources. Take a look at how your current capacity aligns with what it was a year or two ago, pre-COVID-19. Predict where you expect your best [growth potential](https://accountants-info.sva.com/how-to-shift-business-growth-planning-into-actionable-steps-ebook) to be and take a critical look at whether you can meet the anticipated demand in those areas. Ask yourself: - Do I have the ability to add people? How quickly can I do that? - Do I have the equipment to service those sales? - Do I have the people to service those sales? - How long will it take to hire and make those people productive? - Do I make shifts in products or services to more profitable vs. less profitable based on demand? Creating capacity requires capital, so let's move on to a discussion on cash flow planning. ### Know Your Cash Flow Through the pandemic, some businesses were in protection mode and some had an increase in activity. If you were in protection mode, switching to a growth mode will be a mental challenge but if you can see the growth and capture it, you should be rewarded with a more substantial business. It is time to move from a "protect your business" mode to an "I'm ready to grow" mentality. - Start with a cash flow analysis which looks at cash coming in (collected sales) and money going out (payroll, equipment, rent, fixed costs, and variable costs). - Initially in a growth phase, the [cash](https://accountants.sva.com/biz-tips/do-you-know-why-cash-is-king) going out will be greater than the money coming in but, at some point, that should stabilize and then reverse course. - If possible, prepare weekly forecasting data. This information will help you evaluate if additional funds will be needed and for how long. - It will be vital that you first develop a realistic scenario for your business and then plan for the effort and focus it will take to make that forecast a reality. ### Understand Your Supply Chain Managing your supply chain might be more complex now than it was a year ago. Ask yourself: - Are your most frequently used vendors able to meet your demand? - How at risk are you if that [supply chain is disrupted](https://accountants.sva.com/biz-tips/strengthen-your-supply-chain-with-constant-risk-awareness)? - Should you be looking for additional sources? - Where does your company fit in the supply chain? Your [supply chain is the most critical element](https://accountants.sva.com/biz-tips/looking-for-concentration-risks-in-your-supply-chain) in delivering timely products and services and, in turn, your ability to grow. Spend some time analyzing this area of your business. #### Be Proactive and Accept the Challenge As you take a critical look at your operations, you will need to balance customer service, operational capability, and your organization's financial picture. Lean on your [advisors](https://accountants.sva.com/professionals) to help you develop a focused strategy for 2021, but don't wait. Be ready for the challenges ahead with a proactive approach and a critical look at your business potential. *© 2021 SVA Certified Public Accountants* [View full post](https://accountants.sva.com/biz-tips/is-your-business-ready-for-a-business-boom) ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Daniel Glomski, CPA, ABV, CVA, MST" }, "dateModified" : "2023-03-09T21:26:42.572Z", "datePublished" : "2021-04-21T12:37:31Z", "headline" : "Are You Ready for a Business Boom?", "image" : { "@type" : "ImageObject", "height" : 627, "url" : "https://f.hubspotusercontent00.net/hubfs/2939357/are-you-ready-for-a-business-boom.jpg", "width" : 1200 }, "mainEntityOfPage" : "https://accountants.sva.com/biz-tips/is-your-business-ready-for-a-business-boom", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png", "width" : 60 }, "name" : "Biz Tips" } } ```