A helping (virtual) hand for small businesses during Covid-19

21 April 2020
Business Rescue Business Growth
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The Covid-19 crisis has changed the way we live, work and socialise. It’s a time of unprecedented upheaval and uncertainty for everyone with the pandemic affecting countries across the globe. In the UK, the current lockdown sees us separated from our families and work colleagues, with many of us working from home, and those who are parents having to get to grips with home schooling. Even our pets are struggling to understand why we are at home all the time. These social distancing measures are of course essential to help us save lives and protect the NHS. For small business owners the situation is far from business as usual. Some sectors have been especially hard hit such as retail, travel, leisure and hospitality. Some smaller businesses, including sole traders and the self-employed, have seen their work disappear overnight. There are some businesses that can continue to trade albeit in a different way than usual. People and companies are having to adapt quickly. This is business as unusual.

Let’s face it, the Chancellor of the Exchequer Rishi Sunak says that he can’t save every business, charity or household and there will be tough times ahead, but he also said that the UK economy will recover, which it will (at some point). The current crisis will end if we work together. To quote the Queen’s historic Coronavirus speech: “Together we are tackling this disease,” she said. “If we remain united and resolute, then we will overcome it.” (source https://www.bbc.co.uk/news/uk-52176209)

This blog is dedicated to those struggling small businesses and their owners. The self-employed or sole traders, those with business debts over £5,000 and a payroll, all those who need a (virtual) helping hand to guide them through the tough times ahead and planning for recovery.

At Be Rescued we specialise in helping the small businesses turnaround in times of crisis. This global pandemic is a crisis of unprecedented scale with much uncertainty. Businesses are going to have to adjust. As a small business owner, you may feel way out of control but there are some steps you can take to help yourself and your business to be more resilient. Here are a few tips from the Be Rescued team.

Covid-19: 11 tips for small businesses during these challenging times

Don’t panic

The first thing is not to panic. We are all in the same boat and governments and scientists worldwide are doing their job to find the best way through. The world is responding and while huge numbers of people are practising social distancing we are coming together like never before. We are adapting by having zoom calls to connect with colleagues, friends and family, and having shared experiences from online screenings of theatre shows (my favourite is Cirque du Soleil) to Joe Wicks PE hour (great for parents and kids). In the UK we come together every Thursday night to clap for our NHS key workers who are striving for us on the frontline.

We are all in this together. As a small business you are not alone. If you are struggling during these challenging times, there are people who can help you. The Chancellor of the Exchequer Rishi Sunak has brought in a raft of measures to help small businesses and the self-employed including the Coronavirus Job Retention Scheme, business loans, the Self-employment Income Support Scheme and greater access to Universal Credit. There is plenty of help out there so do check what you are entitled to and arm yourself with information, afterall knowledge and understanding is of great comfort when the light seems to have disappeared at the end of the tunnel.

The Be Rescued team have compiled a list of support for businesses (including website links from public sources as well as useful guides from Tony Groom a colleague working on the turnaround sector) at the end of this blog.

2. Take care of your staff (and yourself)

People are understandably very anxious during this difficult time. It is essential that you reassure your staff and implement hygiene rules to stay safe in the workplace. Where possible, staff should work from home. If you make goods, keep a skeleton staff to operate machinery.

Working remotely presents its own set of challenges. Talk to your IT advisor to keep data, cyber information and communication secure. Arrange catchups using software such as zoom and skype to keep people in touch with one another. As well as helping to keep projects on track, virtual face-to-face communication on a regular basis will also boost staff morale and make people feel less isolated.

We are all having to adapt. This is not just working from home. This is working from home during a pandemic and the country in national emergency. It is important that you take care of your staff and yourself. Yes, business is important but so is wellbeing. Encourage your staff to take their daily exercise and regular screen breaks. Do the same yourself, this is a stressful time for small business owners. At Be Rescued we check in with each other to make sure everything is ok. Don’t put too much pressure on yourself or others during this challenging time. Practice listening and aim to have open and frank conversations.

3. Take care of customers, suppliers and stock

At the time of writing this blog, very few businesses are open to the public. However, if you do have a business deemed essential by the Government you must have clear hygiene rules in place for any customers.

Supply chains and other ways we do business have been disrupted. Keep talking to your customers and suppliers. Explain at what capacity you are operating (and find out what your suppliers are doing and how it may affect your supply of materials or services). Negotiate new deadlines or deferral of work if necessary.

Be transparent about any difficulties you are facing. Let people know you are open for business but in a different way. Your customers and suppliers will appreciate an honest approach.

By keeping your customers engaged and in the know, you will help ensure they use you now or come back to you in the future if they cannot purchase or hire you at present. Communication is king so use engagement with customers wisely to find out as much as possible potential changes on their wants and pains.

4. Take care of cash

As a small business owner, it is essential that you review your budget and financial plan and speak to your bank and creditors earlier rather than later when things can get out of control. There is financial help out there for struggling businesses, banks are offering more flexible terms and increased overdrafts in the wake of the Covid-19 crisis. Take advantage of any little help you may get in terms of payment flexibility but don’t be tempted to take on a debt you deep down suspect you won’t be able afford or cannot be budgeted for.

At Be Rescued, we specialise in helping businesses in financial difficulty turn around. If you can, it is best to stay clear of getting into more unbudgeted debt (no matter how extraordinary the situation is). Before taking on a debt, you could try negotiating with all stakeholders and keeping communications open. There is a greater level of understanding during this difficult time.

You could also look at action you can take to guarantee cashflow into the business. One such idea could be to provide vouchers to encourage customers to book your services now. You could build in a limited time incentive such as a discount to encourage take-up. This could be useful for a range of small business from hairdressers to builders and restaurants. There is huge support for small businesses at the moment and your customers may jump at the chance to help your business.

5. Take care of your Creditors

If you experience a dramatic drop in orders, you may need to reassess your payroll bill. Check your contracts and engage with your employees. The important thing is to retain talent to ensure that your business remains strong when the crisis is over. If you are concerned that you may have to make redundancies, consider furloughing staff. We have included links to support for businesses at the end of this blog now that the Government Coronavirus Employee Retention Scheme grant is open. The Scheme will also help in covering the Employer’s pensions and NIC liabilities to the furloughed employees.

For your trade creditors, you should also check your creditors payment terms and negotiate manageable repayment plans to help keep your business afloat.

At Be Rescued, we specialise in helping businesses through times of financial difficulty. Do get in touch if you need any support. We are here to hold your hand virtually!

6. Communicate

Communication is crucial right now, keep your customers, suppliers, creditors and staff engaged to help your business come through Covid-19.

We are all in this together. Be clear with your customers. If processes such as deliveries will take longer, tell them. People will understand. Let your customers know the steps you are taking to protect your staff if they are working in premises such as in a warehouse or factory.

Organise a virtual chat with key customers to find out how you can best support them at this time.

Keep on talking to your employees. Organise virtual meetings including daily huddles to check in with people and share information about projects and work.

Keep the lines of communication open.

7. Be visible

Now is not the time to stop marketing. By continuing, your business may be one of the first people think of when the crisis is over. If you run a business that can help people now, produce blogs and rich social media content with useful hints and tips to guide people (just like this one!). It is a time for helping rather than overtly selling.

By staying visible, you will help to keep your company going. Social media is a great way to communicate with your customers and potential customers. Use this time to build your social media presence, unless you advertise the platforms are free. If you are continuing to operate, let people know you are open for business and how they can access your services. Let people know what has changed about the way you operate.

It is essential that you are sensitive in any marketing activity. Review any scheduled social media content and images to make sure everything is appropriate. Focus on being helpful in social media posts and building relationships with others.

8. Keep your eyes open for opportunities

As the saying goes, when one door closes, another one opens. You might not be able to offer your usual goods or services for a while but by working with what you have and continue listening to your customers, you might be able to adapt. Some businesses will suffer during the lockdown, but it is also the time to look at new opportunities and be creative.

The word PIVOT, which means to turn or rotate, is being used a great deal at the moment in a business context. Have a good look around your business environment and you might see something new you can offer that would work right now. For example, if you offer face-to-face training, you could move your services online. If you are a marketing agency with a strong focus on creating promotional films, you might like to focus on building your email marketing and online services.

Look to see if you have any services that would work better now or any that could be adapted to serve a current need. For small business owners are very flexible, and early adaptation is the key to getting through this crisis. If you want to run any ideas by the Be Rescued team, we would love to hear from you.

9. Be community minded

On a daily basis we are seeing heart-warming stories about people and businesses doing wonderful things to support their local communities. From groups forming to support the most vulnerable in society to companies turning to producing much needed items such as hand-sanitiser or hospital scrubs. Perhaps your business can provide essential help.

Community is vital at this time. If you belong to any networking groups, see if they are having online meetups. As small business owners, you can support each other. Having a group or a community of people you can talk to and seek advice from will really benefit your small business and your own wellbeing.

10. Work on your businesses (rather than in it)

Unless your business makes products or services that are currently in demand, the chances are that you have less work than usual. You may have time to spend working on your business. We all have those things we’ve wanted to do for ages but there are never enough hours in the day. Perhaps you’ve been meaning to update your LinkedIn profile or prepare content for your business social media platforms. The time is now!

Organisations and professional bodies are rallying to support businesses and in particular are offering free online training sessions and webinars. See this as an opportunity to gain new skills, perhaps learn how to build an online marketing campaign or how to do your financials. At Be Rescued, we are big fans of learning in good and bad times so we will be taking advantage of what’s on offer.

11. Plan for recovery

This is a really difficult time, but it is important to remember that the crisis will end.

As a small business owner, the best thing you can do right now is plan for recovery.

Revisit your business plan and see if you need to adapt it as a result of the impact of Covid-19. Look again at your customer profiles and your product or service offering. Imagining two different future scenarios always help, for example if you are a small B&B owner there could be a surge of holidays bookings after lockdown or people might be still afraid to start holidaying after a pandemic, ask what you can do in those two scenarios so plan, adapt and recover.

Any time you spend now on building a stronger business will help you come out of the crisis more easily. Sow the seeds for recovery now.

To conclude…

The key take-home is businesses are going to have to adjust to come out of this. However, there is help out there for small business owners, you are not alone.

What’s more by keeping communication lines open and talking to employees, customers, creditors and suppliers you can make life easier for your small business. By taking steps to adapt and plan for recovery you can get through this unprecedented crisis.

The words ‘take care of’ feature a lot in this blog. At Be Rescued we are prioritising wellbeing. For everyone, this is a time to take care of ourselves and those around us.

This is a much longer blog than usual; we hope you find it helpful. Do get in touch if you need any support.

Maria Pombo, the founder of Be Rescued, is a Turnaround Practitioner, so dealing with crisis is what our business is all about. Maria also works with other Turnaround Practitioners, Insolvency Practitioners and Insolvency Lawyers, so if she can’t help is able to refer a client confidently to someone who will.

As promised, in the first bullet point ‘Don’t panic’, here is some help and advice:

Support for businesses

Coronavirus (COVID-19) Job Retention Scheme

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Statutory Sick Pay (SSP): employers guide

https://www.gov.uk/employers-sick-pay

Coronavirus (COVID-19) Self-employment Income Support Scheme

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

IR35

https://www.gov.uk/guidance/understanding-off-payroll-working-ir35

PAYE scheme

https://www.gov.uk/paye-for-employers