Most businesses are working, within the constraints of social distancing and reduced capacity. However, with increased costs and reduced revenue together with a possible No Deal Brexit, businesses need to work hard to recover.
In addition, there is the possibility of a second wave, tax increases from the Chancellor to repay the increased deficit and there are the Brexit negotiations, with no sign of a deal, and the consequences.
This all sounds depressing but there are things that can be done to keep your business on track to recovery and growth.
Recovery and Growth
In this period of uncertainty, be prepared to adapt and evolve your business. In addition, use our basic six step plan to recovery and growth:
Funding – It is not too late to apply for a government backed loan. https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Curb Spending – Stop all unnecessary spending, except for marketing
Credit Control – Be on top of receivables, this is essential to ensure a steady cash flow
Marketing – Now is the time to invest in advertising and anything that will boost revenue
Revise Internal Processes – Time and money is often spent on duplicated or unnecessary processes. Check Direct Debits
Scenario Planning and Cash Flows – It is essential for businesses to have cash flow forecasts with scenarios based on different economic outcomes.
As December 2020 will soon be here, do not forget to plan for a no deal Brexit. This relates to all businesses involved with European transactions.
In addition to the Government loans there are changes to the Government furlough scheme (CJRS) which is starting to wind down.
However, it may help to know that at the end of January businesses can apply for the Job Retention Bonus of £1,000, per employee. For further information.
With the Governments financial help, careful planning and evolving, small businesses have a chance to not only recover from the pandemic but continue to growth and profit.
If you require further advice or assistance, please contact us, email@example.com or 01223 294732.
Francesca and Chris