For past 15 days, this question was asked so many times by so many business owners, which made me think – What are we worried about?
Most voiced a common concern– “Our Sales turnover will get adversely impacted – which will not be good for us.” Think about it, how valid is this concern? And how much real impact it will have on your business?
I agree, your sales will be impacted, but to what extent? 20%, 30%, in some worst-case scenarios (if you are in project sales) 50%. In normal circumstances, your 70% to 80% sales will be protected. The balance which you could have sold – will reflect as inventory in your books.
It is a standard practice to book the sale in the last few days of March; so, it can reflect in sales. In reality most of us prepone the demand of the next financial year or book primary sales, which in reality are misleading indicators.
In the current situation – your customers, employees, financers, suppliers as well as the government, all are aware of the situation; and no one is likely to ask us any question on your non-performance during this period.
This leads to a very interesting point – The achievement which we want to book in our financial statements on 31st March is for satisfying our individual need. It is our inner voice, which is hesitant to accept our non-performance.
Well, that is a trait of any entrepreneur which will remain; but let us accept that sometimes things don’t happen as per our plan. That is where we learn and improve. The moment we accept the reality, we will stop feeling bad and relieve ourselves from unnecessary stress.
Have a great financial year ahead…