How can SMEs manage their finances to help them survive as Coronavirus restrictions are eased?
As we see many businesses and industries begin to reopen as a result of Coronavirus restrictions lifting, it doesn’t mean they are completely out of the woods just yet. Many businesses still face months of financial uncertainty and it can seem an extremely worrying time.
Kate, our Group Financial Controller shares her advice on how business owners can manage their finances to help them survive over the upcoming months:
While many businesses are still continuing to struggle with the impact of Coronavirus there are some practical things that you can do to help your business survive through this period of uncertainty.
Having a really clear handle on your cash flow forecast can help you to foresee gaps in funding and seek relevant support to help you get past them. Understanding which bills fall due in the coming months and talking to landlords and suppliers in advance will give you more time to negotiate payment plans and give them assurances that you’re in control of your finances. Now is a good time to review all of your business expenses, considering those which are essential and those you could do without, paring this back to a minimum where possible.
Consider alternative revenue streams that can bring in much needed cash quickly without requiring much investment such as offering takeaway/collection services or selling complimentary goods alongside services that you already supply.
Talking to your customers about your plans to be Covid-secure and reassuring them that they can enjoy your services in a safe environment will help to bring in much needed custom. Maximise low cost marketing avenues, such as social media, to let customers know that you’re open for business. Advertise the changes you’ve made in a positive light, focusing on safety and customer experience.
And finally, there are still many financial schemes available to SMEs through the Government, including loans, business rates relief and grants – head to their website to find what options are suitable for you and your website: https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19