What To Focus On During UK Coronavirus Lockdown?

During these unusual and difficult times, it can be hard to catch our breath as we try to figure out how to manage what lies ahead with the spread of Coronavirus in the UK. Family, friends and our community come first, but the reality is we still have our livelihoods to consider.

You might have more time now (even if it’s when the kids are in bed or napping) without the daily commute and it is critical to use this time to get ahead of your competitors and re-evaluate your position. Focusing on some key activities can help keep you on top of your work but also how you plan for the future. Here are our thoughts about how you can first ensure your business survives, before changing gear to ensure that it thrives going forward.

Key tasks to consider

Each person’s business and individual circumstances are unique and so you will need to take time to reflect on your own situation but as an indicator of some key activities to consider, beyond the ‘Day Job’. We suggest:

Paths to business survival

• Remote working: If you have to work from home establish and stick to a routine that will help you to adjust, so any drop in productivity is minimised.
• Understanding the support available: The Government has announced a range of emergency measures to help individuals and businesses through the COVID-19 pandemic lockdown. Take time to understand them and know which are applicable to you. We have written several blogs here, on Self-Employed, Additional Support, Help for SMEs and the 2020 Budget and will continue to keep you updated via our Blogs and across Social Media (Facebook, Instagram, LinkedIn and Twitter). The Government Guidance is also constantly being updated. If they are unclear get in touch with us.
• Financial forecasting: even if you have a strong business, it could get swept away at times like these due to running out of cash. Do daily, weekly and monthly forecasts based on your latest information (including the support available above) under different scenarios to understand your bite points where tough decisions might need to be made. Update these regularly so you are ready for anything; there may be actions you are not prepared to take now but might need to consider in the future.
• Working Capital Management: With the above in mind, ensure your consumers pay you on time and look to increase your credit limit and payment terms with existing suppliers and don’t pay them before you need to, in order to improve your cashflow position. Particularly if you have any rental payments, as your landlord may be getting support, maybe they can pass this onto you? Consider your personal position too; can the banks or landlord provide you with a payment holiday?
• Good housekeeping: In addition to the above take the opportunity to:
  • Cut costs: although you are unlikely to be able to change your fixed costs such as premises and employees in the short-term, cut any unnecessary expenses, especially if they are costs your consumers do not see, or delay things to improve your cashflow position.
  • Financials: make sure your numbers are up to date so you are able to make the best decisions you can based on the latest available information. Some of the support available will also require up to date financials so you are likely to need to do this in any case.
  • Check insurance policies: Understand what you are and are not covered for. For example, to do you have key man insurance if illness strikes? What about critical illness cover, or income protection?;
  • Keep communication: Even though we may feel isolated, we aren’t. Look for different ways to stay connected with clients, partners, suppliers, advisors etc, especially if you need their support.

Path to thrive

• Strategy, Strategy, Strategy: What do you want to be famous for? What’s your three year and five-year plan? What’s your Strategy, Vision and Values? What does your consumer journey look like and how can it be optimised? What are your Unique Selling Points (‘USPs’)? What is the culture you want embedded in your organisation currently and how can it be done? Does your Business Plan reflect all this? What does success look like to you?
• Sell, Sell, Sell: If you want to grow, what is your path to growth? What does your target consumer look like? How do you currently gain the best referrals and how can you gain more of these? If you have a different business strategy to growth, similarly how do you achieve this more quickly? Make sure your sales and marketing plan supports your Strategy. Maybe you don’t need to sell more to more consumers; maybe you could increase your prices, cross-sell, or premiumise (AKA upsell) the services you provide to your existing consumers?
• Supply chain strategy – rather than making the most with your existing suppliers, as noted above, why not go to market and see if there are better suppliers out there to help you satisfy your consumers? These could be quicker, higher quality, cheaper or more reliable to name but a few improvements which your consumer will see so are likely to be value for money changes.
• Cut costs – You’ve got the right plan in place now. What resource do you need to support it? How can you meet the consumer need but ensure you are getting value for money with both your fixed and variable costs? What costs are unnecessary as they are unseen by your consumer? This goes beyond the supply chain point above.

If in doubt, seek advice

As the situation evolves around COVID-19 we expect to see regular announcements with news and initiatives that may or may not affect our businesses and personal situations. Keeping on top of these and understanding the impact can be difficult but you are not alone. As always, we are here to support businesses navigate their way through these times.

We will continue to offer guidance and updates on our website and across Social Media (Facebook, Instagram, LinkedIn and Twitter). We are here to help you not only survive but thrive during this period and into the future. We are proud to be a trusted adviser to our clients and will continue to partner with businesses with our services across the Hampshire and Surrey areas.

Need assistance?

If you would like to discuss any business challenges you’re concerned about and how they may impact on you in the coming months, our specialist team can help you, contact Black and White Chartered Certified Accountants, populate the “Got a Question” form on the right, or call us on 0800 140 4644.