With the growing uncertainty for businesses around the Coronavirus and affects it may have on businesses I thought I would give some practical advice on how to cope in the event of a business downturn.
Try not to panic- easier said than done this is a time where you need to be as proactive and methodical as possible. Leapers has some great resources on coping with going into isolation and just solo working and mental health that may help your employees.
Control your cashflow- Look at your cashflow ask yourselves these questions.
i) Do I have a cash flow shortage and do I need toobtain funding?
i) Do I have a cash flow shortage and do I need to obtain andand can be cut?
iii) Are you getting the best deal? For example software partners usually get the best deals - your accountant for your accountancy software etc.
For more tips on cashflow see our blog - Cashflow tips
Try and get paid on time and the more efficiently. Half the battle is getting paid on time or shortening the time between a customer paying and your payment provider releasing the money to you. A lot of payment providers are in beta testing for 2-day releases so it's worthchecking. This might be the ideal time to review how
you are taking payment. See our blog post for how to best get your invoices paid on time. Getting your invoices paid
Get planning! Have a look at every area of your business and work out what you can convert to the virtual client meetings, that event you were going to run - can you convert this to online and potentially gain new clients along the way. Supply chain - speak with your suppliers make sure that all of the goods are going to be available.
Look at your existing protectionunfortunately in this unique situation you are unlikely to be covered with your business insurance. Most business insurance does not cover Pandemic or government shutdowns. It is worth having a look at your coverage levels and reviewing your income protection, business insurance, and the processes in place for your business.
HMRC support for businesses -support for businesses is changing and evolving at this time. There is a range of different options available. Some you are able to proceed to apply with at the moment and some that HMRC are still getting ready for business owners.
The main ones include:
Job retention scheme: Reimbursement of up to 80% of furloughed staff wages. This scheme has yet to have an application process in place
Deferred VAT scheme: No payments need to be made for VAT from 20th March to 30th June 2020. Though VAT returns still need to be submitted.
Income Tax: Payment on account delayed to January 2021 - for self-assessments
Support for businesses paying sick pay - Businesses can recover up to 2 weeks of SSP payments related to Covid - 19
Further information on all Covid -19 related HMRC can be found on:
Please don't hesitate to get in touch on firstname.lastname@example.org and we can let you know how we can support you and your business.