Mark West - William West Printing
The pandemic is causing business owners a lot of stress and anxiety. If you’re wondering if your business will be able to survive these challenging conditions, now is the time to assess your position, and start thinking strategically for the future.
Knowing where to begin can seem overwhelming, so we’ve broken it down for you into a few simple steps.
This page will cover:
It’s important that you fully understand your company’s finances. If you don’t know where your company stands financially, it’s best to reach out to your accountant as soon as possible. If you do not act quickly, certain recovery options may no longer be available to you. Now is the time to look and plan ahead.
Not sure where your company stands financially? Use our free company health check to find out more!
Forecasts are incredibly important as they provide valuable insights into your future business requirements.
A profit and loss forecast clarifies where your company is heading and how viable it is now.
A cash flow forecast is even better, as it gives you full transparency on:
The best practice is to have a cash flow forecast that can be adjusted weekly. This way it moves with real-time data which is more reliable. A cash flow forecast will let you know if you can continue trading without having to borrow or seek any formal insolvency procedures.
Now is the time to start looking at your company’s overheads. This will show you any unnecessary costs that can be reduced or cut completely.
Communicate with creditors and suppliers
If you haven’t already, now is a good time to open a dialogue with your creditors and stakeholders. Be honest and open about any difficulties you may be experiencing. If you have arrears and any potential issues with future payments, now is the time to let creditors and suppliers know, as you may be able to work out an arrangement with them. Recovery strategies such as a Company Voluntary Arrangement may work for you.
Communicate with customers and debtors
It’s important to understand your cash outflow as well as inflow. Reach out to your customers to see how they’ve been impacted by the pandemic. It’s best to ask for complete transparency on their current and future needs for your services or products so you can plan ahead.
With outstanding debtors, find out if payments will be made within business terms. If not, try and negotiate a settlement that works for both of you.
It’s important that you’re aware of your duties as a director. If you’re unsure about this, we recommend seeking legal advice. We’re connected with some excellent solicitors, so get in touch with us and we can put you in touch with the right people.
We also recommend:
As a director, it is your duty to protect the interests of your company and its creditors. If your company is experiencing financial difficulties, it’s important that you take every possible step to minimise the potential loss to creditors and avoid wrongful trading.
Although the UK vaccination programme has increased hopes that the economy will rebound once restrictions are lifted, the future is still very uncertain and unpredictable. Therefore, it’s important that you’re aware of all the options available to your company e.g. how you can help preserve your company, but also what your options are should you, unfortunately, become insolvent.
We are here to help you. We offer free and confidential consultations with no obligation to proceed. We will listen to you, take the time to understand your company and its current position and provide you with honest advice and the best options available to you.
A well-thought-out strategy for the long-term future is key to helping you through the Covid-19 crisis.
Start looking at your company’s finances and cash flow forecasts, and communicate with your creditors, stakeholders, suppliers and customers to help you find the best way forward.
This will help you take back control and plan for the future.
As business recovery and insolvency experts, we know that times are tough, and unfortunately, the future remains uncertain and unpredictable. However, now is the time to take a look at your business and its finances and set out a plan for the future.
We’ve put together some useful and relevant content for business owners, to help you navigate these difficult circumstances.
Mark West - William West Printing
Daniel Glover, Ledger Sparks
Paul Buck, BurnBecks
Sheetal Shah, DSK LLP