0330 555 1139 hello@crossehr.co.uk
Focusing on Finances for a Post-Lockdown World

Focusing on Finances for a Post-Lockdown World

Remember your swimming badges at school… My least favourite was the one where – after you had already swum multiple lengths and dived in for a brick – you still had to swim a length in your pyjamas. I remember feeling tired, my swimming stroke wasn’t particularly strong and the weight of my wet PJs made the last bit pretty tough.

I think a lot of us feel like that now, having got through the last few months and fortunate to still have a business, we now must turn our attention to making it post-lockdown. We all feel a bit beaten up by it all. That’s why I’ve decided to share a few tips to get you energized and ready to tackle the post lockdown period.

 

Growth

We are all in a growth phase now as we rebound from this period, but this is different from when you started your business and grew from nothing. Now you can use everything you have learnt from the first time you did it and grow faster and more profitably.

My two key questions to consider;-

Who you want to sell to?

Is it the same people you sold to before or do you now better understand the profile of customer you want to work with? Think about the size of customer, the sector they are in, the location or even the number of decision makers you have to deal with.

What do you want to sell?

Do you know which of your products or services are the most profitable? Can you drop services you didn’t enjoy delivering, have you pivoted during lockdown and have great new offerings to get out there?

 

Capacity

Do you know the maximum capacity you could deliver right now based on your existing cost base?

It’s important to understand this and compare it to what you are delivering and think you may be able to in the coming months.

If you realise you are currently over- capacity, then consider:

-Use of the flexible nature of the Job retention Scheme from 1 July. Understanding what staff you need now is key and knowing your trigger points in terms of sales vs capacity, so you bring people back at the right time.

-Unfortunately, you may need to make redundancies now to preserve the long-term future of your business. If based on realistic sales this is necessary, then do not take too long making this decision.

If you are under capacity because business is going better than anticipated, then think about whether you really need to employ or are you better surrounding yourself with a network of good quality freelancers. The second option puts less pressure on fixed cots during what may be a volatile time.

 

Forecast

In such an uncertain time there is no getting away from the fact you need to forecast your cash flow.

Factors to consider:

Income – So hard to really know what will happen- will recovery be U or V shaped- who knows. Start with your best guess based on what you know now.

Costs – Ensure you build back in any costs which have been reduced during this period e.g. rent reductions, other premises related costs. You may also want to build in costs to help you re-build such as advertising or marketing.

Loan repayments– any loan repayment holidays may be about to expire so ensure you have considered these.

Tax deferrals – If you deferred Vat as part of the Vat deferral scheme ensure you rebuild in repaying this before 31 March 2021.

Sensitivity – Now you have done all this look at how sensitive you are to change – if sales were 10 or 20% lower than you have forecast what impact will that have on your cashflow

Financing – Now you know your position consider if you have the right financing in place.

So deep breath folks, we made it this far. You built your business before and all of this will help you to build faster and more profitably second time round.

 

More Support

Helen Fleet of HF Financial Strategy works as a finance director and guides companies to delivering their financial and business objectives which can include cashflow planning, pricing reviews and ways to improve profitability.

Helen kindly crafted this blog as part of our Return to Work Toolkit. You can download it for free here.

 

HR Survival Through COVID-19

HR Survival Through COVID-19

Thrive and Survive is a community created by a collective of business people who are coming together to help you overcome the current financial crisis and come out of this with a stronger business.

I recently shared my thoughts on the HR implications of COVID-19 in a webinar that covered:

  • How to deal with 3 scenarios of people ‘out of the business’ with COVID-19 related reasons
  • Furloughing workers – who’re eligible, what are the rules and how to do it
  • Common questions on partial furloughing
  • Advice on keeping in touch with staff, engagement, and productivity
  • Lots of chat on the positives arising for business and the opportunity when this is all over

Please excuse the noise in the background – we can thank the joys of remote working in a busy city for that!

Hopefully, it’s not too distracting and you find it useful.

[PLEASE SCROLL DOWN FOR LATEST UPDATE]

Since recording this webinar, a lot has changed. It seems that every day new data comes to light, so we just wanted to drop in a little more information to support you with the HR implications of COVID-19.

Since the government briefing on 10.05.20, lockdown restrictions are beginning to lift for certain businesses – but this doesn’t mean you should be too hasty in heading back to work. Let’s take a little look at why…

Health and Safety:

It is important at this point to remind you that it is your moral responsibility to protect the health and safety of your colleagues. Before rushing back to work, ensure you address some primary concerns, including:

  • Social Distancing
  • Commuting
  • Staggering Shifts
  • Personal Protective Equipment (PPE)
  • Cleaning, including providing ample hand-washing facilities
  • Mental Health

Before inviting your employees back into the workplace, ensure you follow the guidance of the Health and Safety Executive (HSE). As well as directing you towards some useful resources, including industry-specific support for certain work settings, they are regularly updating their website with guidance to help your safe transition back to work.

Talking to Your Employees:

In this stressful time, we must not neglect our duty to check in on our employees.

This high-stress environment is unsettling for everyone, especially those with vulnerable or shielded loved ones. Ensure you communicate with empathy as you seek to return to normal and make reasonable adjustments where possible.

Return to Work Interviews

If you have had members of staff on furlough for a number of months, it may also be worth considering whether a return to work interview would be of use. This short, informal meeting may help you address your workforce’s concerns and facilitate a successful transition back to the office. If you need a little guidance, why not lean on our slick and consistent process here?

Involving Employees in the Process:

By consulting and involving your employees in the steps you are taking to manage the risk of coronavirus in your workplace you can:

  • Explain the changes
  • Illustrate the safety practices in place
  • Make sure changes will work – their operational input may be vital
  • Hear their ideas and address their concerns
  • Continue to operate your business safely during the outbreak

It is also recommended that you share the results of your risk assessment with your workforce. Where possible, publish the results on your website (note: the government expects all employers with over 50 workers to do so).

If you are unsure where to start with this, HSENI has released an example COVID-19 risk assessment to help you on your way. You can download via their website.

Need some advice?

If you have any questions about the HR implications of COVID-19 or you’d like to discuss how to run return to work interviews, please do get in contact. We hope this has been of use during this stressful time.