Are you ready? Help and advice for small business owners in the event of a business slowdown or a local lockdown OR BOTH
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We are seeing a number of local lockdowns across the UK, with many of us thinking ‘Will there be a lockdown in my area’. As some government support schemes wind up, are you able to cope if business is slow or there is a lockdown? We’ve put together some practical tips on things you can do in the event of either scenario, or both, adversely affecting your business. At Be Rescued, we specialise in helping small business owners in times of crisis.
Local lockdowns and the winding up of government schemes
The past few months have been tough, with some businesses seeing their work disappear overnight while others have continued to trade in difficult circumstances. People and companies are having to adapt quickly. Many businesses have pivoted their product or service offering to survive, with some even thriving. Now the possibility of local lockdowns is presenting a new challenge for small business owners.
As of 8 September, according to an article on bbc.co.uk ‘…parts of north-west England, West Yorkshire, Leicester, Glasgow and Caerphilly are under local lockdown’ (https://www.bbc.co.uk/news/uk-england-52934822). What would a lockdown mean for your business?
The threat of local lockdowns combined with the ending of some support schemes (the COVID-19 Small Business Grant Scheme officially closed on 28th August and the Furlough Scheme is due to end in October), is understandably making some owners fearful for the future of their businesses.
However, there is still plenty you can do. That’s where we come in, we’re here to support you and your business.
Planning for business resilience
As a small business owner operating in such uncertain times you may feel you have lost control. However, there are steps you can take to help yourself and your business. At Be Rescued we specialise in helping small businesses turnaround in difficult times.
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 confidentially to someone who will.
Advice for small business owners: 10 ways to plan for business resilience
You might recall that early in the lockdown we wrote a blog with advice for small business owners. Well, we thought now was a good time to update this advice, especially with the threat of local lockdowns and the winding up of some government support.
- Check what support you are entitled to
Here at Be Rescued, we always tell our clients not to panic. You may be experiencing a lockdown or have been adversely affected by the crisis. Check what support you are entitled to, even though some government schemes are coming to an end there is still some help out there.
On 9th September, Ministers announced new grants for businesses affected by local lockdowns. A News story on gov.uk says that ‘Businesses in England that are required to shut because of local interventions will now be able to claim up to £1,500 per property every three weeks.’ Please see https://www.gov.uk/government/news/ministers-announce-new-grants-for-businesses-affected-by-local-lockdowns.
The government backed Business Bounce Back Scheme loans, with their low interest rates, could be an option if you are experiencing issues with cashflow or need to fund an essential project. However, it goes without saying that this is a loan, so make sure you are able to cope with the repayments before taking on any debt. That said, the loans have been a lifeline for some small businesses.
The second Self-Employment Income Support Scheme (SEISS) grant is now open for claims. Your business needs to have been adversely affected by COVID-19 on, or after, 14 July 2020 to qualify. You must make your claim on, or before, the 19th October 2020. Find out more at https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Don’t forget that from February 2021, employers can claim a £1,000 Job Retention Bonus for each worker they bring back from furlough. This could be a welcome bonus for some businesses.
You can use the Government Support Finder tool to find out what help is available for your business: https://www.gov.uk/business-coronavirus-support-finder
At the end of this blog, there’s a list of support for businesses (including website links from public sources).
2. Take care of your team, yourself and your IT systems
With more people returning to the workplace, staff are understandably anxious. It is essential that you reassure your staff and implement hygiene rules to stay safe. For full guidance on the Five Steps to Work Safely during Covid-19 see: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/5-steps-to-working-safely.
However, many of us are still working from home. Business owners are using software such as zoom and skype to communicate with staff and other business contacts. As well as helping to keep projects on track, virtual face-to-face communication on a regular basis also helps to boost staff morale and makes people feel less isolated. With homeworking here to stay for the foreseeable future, keeping in touch with colleagues is vital.
Working remotely presents its own set of challenges as does going digital. Talk to your IT advisor to keep data, cyber information and communication secure. With many businesses having increased their digital services, moved their businesses online or in the process of doing so, having a handle on cyber security is a must. The National Cyber Security Centre (NCSC) has developed a guidance package to support the self-employed and SMEs with their cyber security to help with the move to online business.
Information for self-employed and sole traders: https://www.ncsc.gov.uk/section/information-for/self-employed-sole-traders
Information for small and medium sized organisations https://www.ncsc.gov.uk/section/information-for/small-medium-sized-organisations
Above all take care of the people in your business: Whether your staff are homeworking or office based, it is important that you look after them (and yourself). Yes, business is important but so is wellbeing. The words ‘take care of’ feature a lot in this blog. For everyone, this is a time to take care of those around us and ourselves.
At Be Rescued we check in with each other to make sure everything is ok. Encourage frank conversation to get to the root of any issues. By being open and transparent, you will continue to work effectively as the current situation evolves and will be more resilient in the case of further lockdowns.
3. Take care of customers and suppliers
With many businesses now open, clear hygiene rules and social distancing measures are a must. Under Track and Trace, businesses are being asked to record details of visitors, customers and staff so that they can be used to detect people who may have come into close contact with someone with Covid-19. For full guidance on NHS Track and Trace see https://www.gov.uk/guidance/maintaining-records-of-staff-customers-and-visitors-to-support-nhs-test-and-trace
Although we are getting back on track, supply chains and other ways we do business have been disrupted. It is essential that you 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 and transparent approach.
Customer preferences have changed over recent months. Use engagement with customers wisely to find out as much as possible about their wants and needs.
4. Watch your cashflow
There is financial help out there for struggling businesses. Banks are offering more flexible terms, increased overdrafts and the Business Bounce Back Scheme loans. 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.
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 can’t afford. At Be Rescued, we specialise in helping businesses in financial difficulty turn around. Before taking on a debt, you could try negotiating with all stakeholders. There is a greater level of understanding during this difficult time and you may find that people are more sympathetic to your situation.
Conversely If you have debtors in your pipeline it is time you also negotiate with those who owe you money to keep the cash coming, you can use accessible tools such Go Cardless (https://gocardless.com/payment-lookup/) to start getting paid in instalments if your debtor is also in difficulty.
5. Take care of your Creditors
Business is picking up but the effects of the slowdown over recent months are still being felt.
For your trade creditors, you should check your creditor’s payment terms and negotiate manageable repayment plans to help keep your business afloat.
At Be Rescued, we help businesses through times of financial difficulty. Do get in touch if you need any support.
6. Keep talking
Communication is crucial right now, keep your customers, suppliers, creditors and staff engaged to help your business get through this difficult time and to build for the future.
Be clear with your customers. If processes such as deliveries will take longer, tell them. People will understand. Organise a virtual chat with key customers to find out how you can best support them.
Keep on talking to your employees. Organise virtual meetings to check in with people and share information about projects and work. You can also plan for the future. We will get through this and your business could even come out of it stronger.
Talking really does help. Look out for online networking opportunities in your local area and for your industry. By talking to other business owners, you can share experiences and will feel less isolated.
Keep the lines of communication open to ensure your company survives and thrives.
7. Be helpful, don’t cut out your Marketing but refocus your message
Social media is a great way to communicate with your customers and potential customers and will help keep your business visible. If you run a business that can help people, 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 and building relationships with customers rather than overtly selling. For every four helpful social media posts, add in one to encourage sales.
Let people know what has changed about the way you operate. It is essential that you are sensitive in any marketing activity. With things changing rapidly, review any scheduled social media content and images to make sure everything is appropriate.
8. Be open to new opportunities
The word PIVOT, which means to turn or rotate, has been used a great deal over recent months. Have a good look around your business environment and you might see something new you can offer that would work right now. Businesses offering face-to-face training have moved their services online. Personal Trainers are extending their reach and providing classes for larger groups through online classes.
Look to see if you have any services that would work better now or any that could be adapted to serve a current need. If you want to run any ideas past Be Rescued, we would love to hear from you. We are in awe of how resourceful and creative small businesses are right now.
9. Work on your business (rather than in it)
You may have experienced a slight downturn in business and have a bit more time on your hands. 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 to work on your business is now!
Organisations and professional bodies are rallying to support businesses and are offering free online training sessions and webinars. It might be worth checking your local Chambers of Commerce to see what events they are offering. See this as an opportunity to gain new skills to benefit your business, perhaps learn how to build an online marketing campaign or how to do your financials. At Be Rescued, we are big fans of learning and are taking advantage of what’s on offer.
10. Plan for the uncertain future
We may experience further lockdowns. Your business may have slowed down. This is a difficult time, but it is important to remember that we will recover. 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. By making small changes, you could put your business in a better position.
Any time you spend on planning and developing a flexible and adaptable mindset and framework now will help you build a stronger business for whatever the future may bring.
Key takeaways…
We live in unpredictable times with the threat of lockdowns ever present. However, 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 will benefit in the future.
You are not alone. There is still some government help available and there are other sources of support you can turn to. Be Rescued work with business owners on our doorstep and beyond. So, if you’re looking for small business advice in Downham Market or King’s Lynn we’re local but whether you are in Norfolk or Northamptonshire, we can help. If you need advice on financial and business planning call Maria Pombo on 01366 387672 or email pombo@berescued.co.uk .
In the meantime, as promised, in the first bullet point ‘Check what support you are entitled to’, here is some help and advice for small businesses:
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 (SEISS)
IR35
https://www.gov.uk/guidance/understanding-off-payroll-working-ir35
PAYE scheme
https://www.gov.uk/paye-for-employers
Limited Liability Partnerships (LLP)
Coronavirus (COVID-19): advice for employers and employees
https://www.acas.org.uk/coronavirus
HMRC extra support
https://www.gov.uk/dealing-hmrc-additional-needs
COVID-19: support for businesses
COVID-19: guidance for employees, employers and businesses
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
The information above is correct as at 9.9.20