Welcome to July and another phase of easing the lockdown.
Many businesses are still working from home, while the retail and hospitality sectors are adjusting to the new social distancing measures.
Whatever the situation, businesses have spent time planning to come out of lockdown. Armed with several scenario plans, cash flow forecasts and changing budgets. In addition, the financial help from the government. Grants, and loans of up to £50K for small businesses, two self-employment grants and of course the two furlough schemes. Cash has always been King, now it has become a Dynasty.
On the subject of cash, it is critical to have a cash flow forecast, ration capital purchases and secure additional finance sooner rather than later.
The Government financial help has been crucial in keeping businesses going through the lock down, however funds are useless without a new financial plan on how best to utilise the funds effectively.
Re-establishing control over a new financial plan, involves changes to the way the business worked previously with adjustments as it moves forward. Control is the key word. All failing businesses have this in common, lack of financial control.
This is particularly true from July onwards in utilising staff. From July, furloughed staff can work part time, paid by the employer. The Corona Virus Job Retention Scheme (CJRS) runs until the end of October.
To be able to make vital business decisions, it is critical that businesses are kept informed. There are many resources of information available, all aiming to help businesses move forward and this website is one of them. See our twitter feed or go to @FreveloLlp.
Although this is a challenging time and July will see many redundancies, it is also a time of optimism. Remember the businesses that are flourishing through the pandemic. Amazon, Zoom, Ocado, Boohoo, Netflix, are a small sample of some of the businesses that have adapted with demand.
We wish you luck.
If you have any queries or need advice on the above information, please contact us for free advice and help your business move forward.
We are here to help.