Is your business ready for the lockdown lift?
Last night Boris Johnson announced his plans to bring the UK out of lockdown. It’s been a long 12 months for a lot of businesses and this news will bring a sigh of relief to many. Although the dates aren’t set in stone, we now have the roadmap and can start to see light at the end of the tunnel.
I know many businesses are still waiting to see if Rishi Sunak will announce any additional financial support, especially the self-employed who are eagerly awaiting an announcement about the 4th payment of the Self Employed Income Support Scheme (SEISS). It is widely believed that further details will be disclosed following the next budget on the 3rd March 2021.
I hope you’re starting to feel some optimism again about the future, but are you ready for what lies ahead? What are your business plans going forwards, do you even have any? It’s important to have both short and long term plans, especially when it comes down to your finances.
As they say, Cash is King!
The lack of cash flow has been the undoing of many businesses during the last 12 months. With lots of businesses struggling and debtors taking longer to pay, cash flow has slowed to a trickle. If that’s happened to you, do you have systems in place to recover these debts? Are your records up to date, and do you know who your debtors are? What if they don’t get paid? Have you made a provision for bad debtors?
What’s your plan for the next 3 months, or dare I say 12 months? Planning for your future is essential. Boris seems determined that this current roadmap is irreversible, but in reality none of us know what the future holds. The general guide is to have between 3 and 6 months of your total overheads as cash in hand, so if the worst happens, your business can keep going!
If you took out any form of borrowing during the pandemic such as a Bounce Back Loan (BBL) or a Coronavirus Business Interruption Loan (CBIL), when do your repayments start? Many business will soon be coming to the end of their interest free period and will need to start repaying the loan. Have you taken that into account when setting your budget for the forthcoming months?
The road to recovery of the UK economy is long, but with the right planning, your business will reach the end. If you need any assistance with debtor management, budgeting or cashflow planning then please get in touch to book a no obligation discovery call to discuss your needs – firstname.lastname@example.org – 01782 906001