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.
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.
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.
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.
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.