If like most business owners your business has been impacted significantly over the last few weeks and you probably don’t want to hear this – but we still have a way to go. So here’s a few thoughts to navigate the impact of Corona Virus on you and your business
Don’t blame yourself
A month ago your business was booming and doing just fine; now it’s ground to a halt or rapidly going backwards. You haven’t done anything wrong. None of us would ever have thought this would impact the World and UK business like it has. We are all in the same boat, but the key is how we respond and communicate as we navigate through it.
Don’t panic – understand where you are and respond
At times like this we need to ensure we don’t bury our head in sand and wait for it to blow over. The starting point is knowing where you are today, understanding what impact this will have on your business over the next few months and plan how you are going to respond.
Ask yourself some honest questions: How long will your cash last? What can you do to make it last longer? How will your business impact your clients? Check on your suppliers to ensure their business wont impact yours.
Prepare a contingency plan
If this is currently having a significant negative impact on your business, you must take control where you can and have a plan to ensure you don’t run out cash and that your business can continue. What short-and long-term cost savings could you make?
If you’re talking to your bank about borrowing, make sure you have good financial information to show them that it’s not just a gut feeling but you really understand what you need. It’s always good to talk to your lender before you need the cash.
If you don’t have good financial information, please talk to us as our team can support you in reviewing the situation and preparing the information required.
Explore Government support for Business
In the last few days the Chancellor has set out a package of how they can support businesses through this period of disruption caused by COVID-19.
More information on these areas will come out over the next few weeks but this includes a package of measures to support businesses including:
- a statutory sick pay relief package for SMEs
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
- the HMRC Time To Pay Scheme
Further information is available here
Let your clients and suppliers know you are there for them
Relationship is so important at these times and many can feel isolated and lonely – keep in contact with your clients and suppliers let them know you are there for them – even if it’s just as a sounding board. Most importantly make sure they are aware if issues in your business could impact them in the coming weeks and what you are planning to do about it.
Be honest with your staff
Employees will understand the impact that the Corona Virus is having on business. Be honest if it’s having a material impact on your business. We have heard positive stories where business owners have spoken to their employees and found staff have really understood the situation. I had one client who communicated to his staff that the impact of COVID- 19 on their business may result in them needing to consider a 3-day week. The staff received it well, and said they would support the owners in any way they could. Another owner who had already taken the decision to implement a shorter working week found a number of staff turning up on days that they wouldn’t be paid for – WOW that’s team spirit!
The Entrepreneurs Hub work with business owners to grow their business build shareholder value, and prepare and sell if that’s their chosen route. If you have any questions about your current situation then please do contact us