Coronavirus action plan
“Our Contracts have been postponed – what are we going to do now?”
Many businesses face cash flow problems caused by the Coronavirus due to delayed contracts, suspended orders, job cancellations, and un-finished contracts.
The construction industry is one of the affected industries due to its nature of work, usually at another premises, working on sites and in other people’s houses.
The government has announced the Coronavirus interruption Loan Scheme for SMEs with the first 12 months interest-free.
I want to share an action plan that may help businesses to take steps to avoid future cash flow problems. Before you apply for a loan, make sure you do the following:
- Assess fixed costs. These are the costs your business incurs, regardless of sale volume:
- Admin fees
- Rent, rates and premises costs
- Fixed salaries
- Director’s remuneration
- Vehicle costs – hire purchases/contracts hires
- Long term Equipment hire and leases
- Loan repayments
- Telephone, internet
- Advertising
- Monthly subscriptions
- Assess current projects completion and prepare a forecast of money coming in during the following months
- Consider agreeing a time off for your staff – Job Retention Scheme for “furloughed workers” offers 80% of their wages while they are off work.
- Check what grants are available during this crisis. Thanks to The Small Business Grant Scheme, you can receive £10 000 or £25 000 depending on what industry you operate in.
- Include the loan repayments in your forecast and assess how much money you need now and how long it may take you to repay it.
Don’t call your bank blindly thinking, “If I am lucky, I will repay it” – prepare your plan.
Contact us if you think we may help you prepare the action plan for the coming months. What is your action plan? Stay proactive!
