When we are ‘in business’ a certain amount of planning and forward thinking is critical to both sanity and survival. Against the backdrop of COVID-19, information and regulation continue to evolve. We urge you to remain positive, remember why you started your business and never give up. Instead, we are here to support you and encourage you to think through the following points, understanding the opportunity that lies ahead.

Understand Demand During COVID-19

On the assumption that many of us will remain in isolation for a minimum of 12 weeks, it’s important to understand how the demand for your business will change. Will you be forced to temporarily close as a business? Are you able to adapt? Can you deliver your services using technology? Do you sell a product that supports or improves isolation and is therefore likely to be in high demand? How will demand change once the isolation period ends, and how will it change if its May, July or September?

Readjust Your Requirements

Based on your current demand, and how you believe the evolution of COVID-19 is likely to impact your business, you need to realign your cost base based on your business requirements. You can look at how to best utilise your staff, review of all fixed costs to see when you can renegotiate upon renewal, and the areas of your business which may need strengthening and time invested in, so that you can respond to consumer changes.

Plot Survival

When HMRC provide more clarity in their announcements later this week, and you have clarification of your expected income during isolation, how can you reduce your costs? You should be able to plot a graph of survival, showing how your business and personal life will continue during the COVID-19 crisis. If outgoings are greater than your income, then you need to consider what you can delay. Banks are offering a three month mortgage holiday but you need to contact your provider to discuss and get an agreement in place. With forward planning, you are giving yourself the very best chances of being able to access the support and additional funding the government is making available as swiftly as possible, so really make the most of this time at home.

Diarise Deadlines

The usual deadlines for Companies House & HMRC have changed in order to support small businesses during COVID-19. To stay on top of these, it is important that you diarise them. Whilst we will always give you reminders of the official deadline and extensions available, if you wish to take advantage of these extensions, then you will need to make a note of exactly when to make a tax payment.

Organise Money

Although the government has enforced a time to pay scheme for all companies and deferred payments on account for personal taxes, it is important that you continue to manage your money responsibly and are well prepared for the payment of VAT, Corporation tax and the eventual payments on account that will eventually fall due. Utilise additional accounts to isolate and save money for essential payments to avoid extreme difficulties in the future.

Manage Your Mindset

This will undeniably be a stressful, challenging and difficult time for all of us, particularly business owners who are responsible for their own lives along with that of others. We really feel strongly about mental health and we care about your wellbeing, so it’s also important to spend valuable time with your immediate family and also facetiming others – make the most of the digital world we live in today. Working from home, it’s good to keep a routine and keep in touch. You can still have your weekly team meetings using Zoom, or regularly catch up on day to day operations with Slack, both used internally at Aspreys.

Isolate Together

Although isolation will be something we are not used to, it’s important to try and maintain human interaction and meet, talk and share work virtually rather than be alone. You can still have your weekly team meetings using Zoom, or regularly catch up on ‘day to day’ operations with Slack. We have even introduced virtual ‘coffee get togethers’ to ensure we are catching up and looking out for each other. We are in this together and many people are likely to have the same concerns, fears and worries, that you do right now.

Accounting

Covid-19 makes it difficult to take life a day at a time