Images_May_2020_Digital_Edition

BUSINESS DEVELOPMENT www.images-magazine.com 16 images MAY 2020 ■ On 15 April, the British Chambers of Commerce weekly tracker poll revealed that just 2% of the firms surveyed had successfully accessed the government’s Coronavirus Business Interruption Loan Scheme, and 15% were receiving grants. It noted that 36% of the firms had three months’ cash or less in reserve, and 6% had already run out of cash. www.britishchambers.org.uk ■ The Resolution Foundation reported on 10 April that a fifth of all firms are intending to furlough all their staff as part of the government’s Coronavirus Job Retention Scheme, and a further 17% are furloughing more than three-quarters of their workforce. “That alone represents more than nine million workers who might have moved into unemployment,” added the think tank. www.resolutionfoundation.org What should I be doing to stop my business going under during the pandemic? A s the world grapples with the implications of the spread of the coronavirus, business owners are understandably worried about the future. As well as our concerns about vulnerable loved ones and the tragedy of increasing deaths around the world, we have to think about the challenges Covid-19 brings to our livelihoods, our customers and our staff. Here are some actions you should be thinking about taking right now. ■ Increase your liquidity Make sure you have some cash in the bank. Reduce your personal spending and your business outgoings. And if you can borrow money for a contingency to see you through, this is probably a good time to do just that, even if you don’t feel you’ll need it, or if you feel uncomfortable borrowing money. ■ Watch out for bad debt In the 2007/8 recession, I saw healthy businesses forced into liquidation because they had one or two clients who went bankrupt owing money. If you have clients who owe you now, make sure you’re assertive about getting paid when you should be. If you don’t want to damage your relationship with a client, use a freelance credit control person to make some polite calls on your behalf. ■ Increase your marketing activity Many companies do okay with little or no marketing. They don’t have a marketing plan, they just get a decent amount of work in from their regular clients and through their reputation. This ‘business as usual’ approach might not be enough to counter the effects of the coronavirus on sales. Start thinking about how you can actively bring in more customers. If you’re already on the case with your marketing, do more of it. Do not cut back on your time or your budget, continue to invest. ■ Take some time for new thinking Start coming up with some new products and services, or think about working in a different sector with the same product if your current customers are likely to be severely affected. ■ Take a day off Go for a walk, if you can. Work on your strategic plan for the next year, with the knowledge that the world is going to be a different place and you will need a different plan. If the time isn’t right to do this, because you’re full of fear, that’s okay. Take a day off, clear your head and do not think about the business at all. Just take some time for yourself. By clearing some space for not thinking, your mind is more likely to come up with the beginnings of your new plan for you. ■ Look after yourself and your staff Obviously, make sure that you minimise the risk of anyone contracting coronavirus. But washing your hands and social distancing are not the only things you need to do to protect yourself and your team. In a crisis, we can be tempted to overwork or run around quickly, fuelled by adrenaline. That reaction works for a temporary emergency, like a big new customer order or the office setting on fire. The adrenaline response is counterproductive, even dangerous, over a long period of time. The pandemic is not temporary – the virus and its effects on your business are going to be around for a good while. ■ Be flexible and agile The reason I love small businesses is that we can react to a situation almost instantly. I’ve sometimes had a conversation with a business owner about a new idea at 10am on a Tuesday and by 5pm on Wednesday she’s got it going. These swift reactions are a massive advantage for you – I bet the CEO of British Airways can’t work that way. Make the most of that advantage. To read the full piece, go to: imagesmag.uk/Chanteray . Expert advice on the business of running a garment decoration company Q&A Julia Chanteray is a director of The Joy of Business, which offers coaching, support and development programmes to businesses. www.thejoyofbusiness.co.uk