We know that many of you good people will never have heard the F word before but its been used plenty this week. Its interesting to hear the different pronunciations of the F with different accents. F this and F that.
We are of course referring to the ‘Furlough’ leave announced as part of the government Coronavirus Job Retention Scheme, albeit commonly prefaced and/or followed by other F words. Again, we are of course making light of the very significant measures the government has introduced to help businesses at this time of national emergency. This is a desperately uncertain and challenging time and we wish everyone well, especially the medical staff caring for us.
So, to recap our five-step plan to help businesses is generally based on:
- Turn off the tap on expenditure;
- Review of CAPEX projects
- Operational cost model analysis
- Keep money coming in;
- Delivering products to customers
- Making sales safely
- Virtual service delivery
- Gather up cash;
- Getting stock and WIP moving
- Collection of debts
- Automated payments
- Make your business grant ready; and
- 80% Furlough or Self Employment support
- Seek finance to make up the difference.
In terms of financial planning, as we enter the eye of the storm we see there being two phases:
- Get to the other side of the storm – say to the end of June 2020 on current estimates; and
- Have a plan to regroup, rebuild and relaunch the business thereafter – say from 1 July to Halloween.
Some businesses are in demand due to the essential services that they provide and have little need of any of the above strategies, others are in serious crisis mode. We wish both well.
There seems little point repeating government advice here when you have all seen it already and indeed it is on continual loop on the news cycles etc.
Be assured we are assessing all the new government advice daily and have a team of professional business advisers ready to assist if you need it. It is apparent that there are going to have to be business strategies to deal with the current events and support with applications which could be complex.
We have template and a range of resources free to clients to support with these things. Just get in touch with Ross Boyd at email@example.com .