What can you do to protect your business during this challenging time? Our Practice Management Director, Linda Carrington, takes a look …
Steps to protect and sustain businesses
It’s been a long four weeks since the lockdown began. Many of us will be worried about our families, our businesses and our future. Let me give you a rundown of the steps our clients are taking to safeguard and sustain their business.
What’s your cash position?
While official advice is understandably focused on support available through Coronavirus Job Retention Scheme, Loans, Grants and deferment of taxes, it’s critical that we look very closely at each businesses cash position.
Firstly, check that your billing is up to date. If work and orders have stopped, contact your existing clients to find out when they expect to restart work. If you’re still able to work to some extent, contact previous clients to find out if they need any services. If your competitors have stopped trading, they may be looking for alternative suppliers.
As soon as you can, prepare a detailed forecast for the next four months to make sure you will have sufficient cash. Make the most of the opportunity to defer VAT payments, and ensure you claim furlough payments and SSP rebates as early and as often as you can.
Once you have a short term forecast, it may be clear that you’ll need additional cash. In which case, prepare a 12 month forecast, setting out your assumptions about what level of business you can resume and when. Explain what you’ll do to secure that business. This will support any application you decide to make through the Coronavirus Business Interruption Loan scheme.
What is / isn’t working?
Finally, take time to look at what is and isn’t working in your business. You may be able to increase capacity. For instance by changing the way you are organised and automating processes. The lockdown may prove that you can reduce business travel costs. You may decide to diversify your business to reduce over-exposure in particular areas. You may downsize your business to a more efficient core offering.
We’re here to help
Whatever you do, it’s clear that all of our businesses will be changed by this experience. That’s why our directors are available online to talk through those plans with you, and help you do everything you can to safeguard your business.
Our Directors are offering their help. Book a call or video meeting online.