Over the last 9 months, Covid-19 has never been far away from the headlines, whether it be from its discovery, to the first Lockdown, and now, the Second National Lockdown. But what does this mean for Business, and where do we go from here?
For many, a National Lockdown means a further period of uncertainty, with the doors shut on their businesses, and sleepless nights as to how to pay the bills, and continue in a post covid-19 world – whenever that is.
The Government has released a raft of measures to help financially support businesses during this period of uncertainty, from the Furlough Scheme, to Grants based on Rateable value, alongside Bounce Back Loans, and Coronavirus business loans. All of these help to “bridge the gap” for a short period when a business isn’t open, but they unfortunately don’t cover all of the costs.
More importantly, a question on many lips is simply – where do we go from here, and how do we recover from the events of 2020?
Put simply, business needs to adapt to the circumstances, find new ways of working, whether that be from home, or click and collect services, or a move online. Financially, the phrase “Cash is King” has increased prominence at the moment, and is one thing which we highly advise clients to take notice of.
Keeping a balance of cash, or similar highly liquid assets which is equivalent to 3 months outgoings, in the same way you’re advised to have 3 months savings personally to cover a shortfall in earnings. This would have provided a buffer that many businesses need, and when combined with other government measures should have been sufficient to see many through this period.
So the question is simply, how do you “stockpile” cash, if you haven’t done this already? The key is the use of Cash flow Planning, scenario and profit planning, and stringent budgeting. All of these are services which we can help with so please do not hesitate to get in contact with us if you’d like to take advantage of these.
In the mean-time we urge you, to all stay safe, look after your friends, families and neighbours – as only through togetherness will we get through this turbulent period.