Top Tips for Business Owners Dealing with the Covid-19 Lockdown

TOP TIPS FOR BUSINESS OWNERS DEALING WITH COVID-19 Create a cash flow forecast This will help you establish how long the business can survive and will show how much funding the business needs to apply for, to ease cashflow. Identify where savings can be made? Ask your commercial landlord to consider a repayment holiday for rent. Speak with your finance company to establish if lease payments for a vehicle/s could be put on hold. Suspend any unnecessary subscriptions. Can you furlough your staff and apply for 80% from HMRC to support salary costs? Are you paying a pension? Can this be put on hold? Negotiate payments to creditors and keep communication open at all times. Could you personally ask for a 3-month mortgage repayment holiday? 1. 2. 3. 4. 5. 6. 7. The Coronavirus Business Interruption Loan Scheme from your Bank? Are UK-based and operate in the UK? Has a borrowing proposal that, if not for coronavirus, would be considered viable i.e. realistic financial forecast and business plan? A loan will enable trading during any short-to-medium term difficulty? Have a group turnover of up to £45 million? Can afford to repay the loan for a term up to six years. 80% backed by UK Government. Smaller businesses from any sector 2 can apply for loans for the full amount. The CBILS is available to businesses affected by coronavirus (COVID-19) and that: Defer tax payments to HMRC Review current liabilities and establish which payments can be deferred and then put this into a separate savings account. Temporary overdraft facility? Maybe you would prefer to apply for a temporary overdraft facility, but the business must be investment ready i.e. business plan and financial forecast that are realistic. Act with integrity!! Make sure you put the well-being of your staff and their families first; keep regular weekly contact with them to check they are ok and see if they have any concerns. A happy work force produces better results, hopefully taking less time off when they return to work. A phone call means a lot and shows you care. Keep chasing your debtors Try to make sure your business is a priority for payment, do you have automatic text alerts for debits and credits reaching your business bank account. Is your business operating in an ethical and sustainable way? This is vital to maintaining a strong brand and reputation and could be a valid reason for your clients to keep using your business. Is the business working efficiently or effectively? Can staff be utilised to do other job roles? Do they use systems and processes efficiently? Do you need to increase/reduce staff hours upon their return to work? Future Planning? Now will be a good time to strategically plan the future of your business by re-visiting your business plan? Does your business model need to change or improve? Keep marketing activity high Those businesses that invest in marketing activity, often recover much quicker following an economic downturn. We specialise in helping your business with advice, training and support in North Somerset. Call us on 01934 418118 or go to our website: www.northsomersetenterpriseagency.co.uk