You are still in control: Keep your business financially secure


At a time when everyone is having to adjust and respond to changing events, we’ve been hearing from businesses about the approaches they’ve been taking to secure their finances, without having to seek
outside support.

Here we outline three key areas:

Tackle your non-essential costs

Take your last bank statements and categorise your costs in these four different buckets – decide what costs you want to decrease or eliminate immediately, and what costs you may need to revisit at a later point:

  • Critical to your business’ operations. e.g. your web-hosting costs if you are running a web-based business – prioritise payment of these costs
  • Important but government might help delay. e.g. payment of business rates
  • Not critical during the crisis. e.g. cleaning services for your office, office rent
  • Costs that can be delayed or rescheduled. e.g. new projects, renovations

 

Ensure you are getting paid

Many businesses are under enormous stress, but it’s important to try to protect the revenue that you can expect.

Call your customers and explain why you need their support – and the payment of invoices.  If customers are finding it difficult to make payment, try to agree partial payment of your invoice and even look for services they can provide to you in lieu of payment.

 

Re-imagine how you reach your customers

Looking to cut costs might be a good defensive move. But don’t ignore the opportunities to adjust your business model to the current crisis.

This is not just about Dyson making ventilators – we have seen the creativity of businesses from all walks of life. There are fitness studios that are renting out fitness equipment and offering online courses. Some pubs have tried delivering Sunday Roasts to customers’ homes. While taxi service firms are providing grocery delivery services.

 

Remember – you’re in control

We have seen in our own business that having a plan makes it easier to cope – emotionally as well financially – in these uncertain times.  Identifying costs that you can reduce, or bringing in new revenues, we believe, will give you a sense of control. The power of writing a list and taking control feels especially important at a time where there is so much that is out of our hands.

In addition to the above ideas, for a summary of government support available and where to find out more, we’ve created a guide which we hope will act as a useful starting point.

And if you still need to investigate additional funding, Funding Xchange is the simplest and quickest way to understand your choices. Check your eligibility for funding by clicking the button below.