10 Tips for your Business in Lockdown!
Businesses whether well-stablished or new, across the UK are being forced to adapt quickly to an ever-changing health and economic climate. The COVID-19 pandemic has caused huge disruption to everyday life as we know it.
Businesses have had to think on their feet to survive. That's why we've put together our own small business survival guide. Our 10 tips are designed to aid your small business with the tools it needs to get through lockdown and look to a brighter future when hopefully we will return to some kind of normality!
- Reassess your business plan and cash flow forecasts
Whether you are a start-up business or well-established, a sound business plan is essential to safeguard your assets and maintain profitability. Revisit your existing business plan, challenge the assumptions within, update where necessary and most importantly think about the cash flow you will need.
Does your business need fresh finance? – Perhaps consider a Bounce Back Loan (BBL) or Coronavirus Business Interruption Loan Scheme (CBILS). The window for applying to these Government backed loan schemes has recently been extended to 31st March. See links below for details.
https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Planning will also help support you make key business decisions – for example do you need to look at furloughing staff now that the scheme has been extended through to the end of March?
- Get to grips with your tax position
In uncertain times it's a good idea to be aware of your business' tax liabilities so that you can plan for your upcoming tax bill. The last thing you want when trying to manage cash flow is an unexpected tax bill. Make sure you are talking to your accountant about future tax liabilities and timing of payments.
Remember that there may be tax planning opportunities for you and your business. A downturn in trade or short-term losses may mean that you can claim a tax refund. Your accountant may also be able to recommend additional tax planning opportunities, such as Research and Development (R&D) tax credits, which can help to reduce your overall tax bill.
- Use online accounting software
Consider transitioning your accounting processes online. Cloud-based accounting software gives you real-time oversight into how your business is performing, which is even more important in difficult times. This software can bring all of your business transactions into one platform, helping you to make essential business decisions based on a more accurate picture of your financial position.
We can guide you through the process of moving your accounts into the cloud, demonstrating several digital bookkeeping solutions that can meet your needs.
- Liaise with your suppliers
Like you, your suppliers will be keeping a close eye on cash flow and credit terms. It's important to keep talking to them to make sure they understand that your business is healthy and that they can continue to provide you with credit facilities.
You may also want to talk to them about extended payment plans. Many will be reluctant to do this, but some will understand and consider this if it gives them more certainty that they will be fully paid over time.
And consider your business ordering levels and the amount of stock you hold - it may be that you would prefer to have cash in the bank rather than stock available.
- Improve your credit control
Keep your fingers firmly on the pulse of any customers or clients with outstanding debts owed to the business. Talk to your accountant as there are often several routes you can take to improve cash flow for your business without damaging customer relationships.
Your accountant may be able to recommend a suitable professional debt recovery service, whether you are chasing outstanding individual invoices or seeking payments across your entire sales ledger.
They can also talk to you about outsourcing your credit control to an expert, which ca help keep you and your business one step removed from the process. These are not debt collectors knocking on doors, they are professional agencies with proven track records of delivering long and short-term debts.
- Stay in close contact with your customers
Maintain open lines of communication with your existing customers, they are one of your biggest business assets. If your physical shops or offices are closed during lockdown, let them know about ways in which they can continue to do business with you.
If your business is remaining open as an essential concern, reinforce the rigorous health and safety procedures you are carrying out to help keep customers safe. You could also ask longstanding customers to help you out by referring your products or services to others by leaving online reviews of your business on Google, or simply by recommending your business to family and friends via word of mouth.
- Maintain open lines of communication with your staff
The prospect of lockdown is an equally daunting prospect for your employees too. The mental and physical wellbeing of your staff is vital during these toughest of times. Make sure you reach out and let them know you are there for them, even if they are working from home. Technology has made it easier to keep in contact on a one-to-one and team basis.
If your business has furloughed staff or is considering furloughing staff during lockdown, maintain open lines of communication with your employees. Be open and transparent about your plans and what it means for them. This can help to foster loyalty and commitment from your staff, who will remember your caring approach on the other side of this pandemic.
- Go networking
Take this opportunity to broaden your horizons and chat with like-minded small business owners in your local area or within your industry. These discussions can often provide useful insight or advice that can help you take your business forward. You'll find that most local business and industry networking groups have gravitated online, with Zoom meet-ups now the norm – many of which are free to attend.
- Take stock of your marketing plan
How do you even begin to advertise and market your business when it appears large parts of the economy are shutting down?
The key to your marketing through the COVID-19 crisis is to adopt an agile approach. If you mainly advertise your services offline, consider talking to a digital marketing expert about the opportunities of advertising online using Pay Per Click (PPC) and paid social advertising, or even digital radio. Online advertising allows you to advertise at a granular level, targeting only those demographics that will be most interested in your business.
Lockdown may also be the ideal opportunity to design and launch a new e-commerce store or website to act as an additional 'shop front' for your business.
- Protect yourself and your loved ones
2020 was a challenging year for everyone and unfortunately 2021 has started in an equally if not more challenging way! It's important to have some downtime in order to recharge your batteries, so you are ready to grow your business. It's difficult to do in these uncertain times, but try to maintain a work life balance.
And if you are the key person in the business, make sure that your business and family are protected should anything happen. It's a subject no-one likes to think or talk about, but putting in place protection through insurance, income protection, wills, life insurance or a lasting power of attorney will give you piece of mind that your loved ones will be looked after should you not be able to work. Your accountant can point you in the right direction of a range of providers who can help you with this.
We are here for you every step of the way. We can offer free initial consultations on your financial position via video or telephone with informal chats designed to outline the help you need.
To start the ball rolling, call our friendly and experienced team today on 01283 217256 or email: office@bucklerspencer.co.uk
Buckler Spencer Limited
Old Police Station
Church Street
Swadlincote
Derbyshire
DE11 8LN
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.