The Coronavirus Plan
We’re all in the same storm, but not the same boat: we need a way of navigating our way back to recovery!
Some businesses will have hit the brakes hard when the lockdown happened and now they are busy preparing themselves to come out at an accelerated pace.
Some will be struggling with the question “How do I get my business back on its feet and what do I need to change?”
Uppermost in every business owner’s mind is cash flow. With a significant drop in revenue over the last few weeks, working capital will need to be conserved and used diligently. Cash flow is a significant barrier to small businesses during an economic downturn. From the last recession, 90% of the small businesses coming out of it cited cash flow shortfalls as having an impact on the future growth of their business.
Currently, many businesses are facing difficulties in gaining access to much-needed working capital. Around 60% of small businesses could survive for three months with the cash reserves, but worryingly 35% are already having a day to day issue with cash flow.
(Sources PWC, CIMA and BCC)
The widely accepted expectation is that customers will not behave as they did before.
After the economic crisis of 2008/09 nearly 60% of the population reduced their spending on out of home goods and services.
(Sources ONS, McKinsey and Opinium)
Localised spending is expected to increase as consumers favour more local produce. Some businesses are already having success by adapting and there are some common practices emerging.
Reach customers in new ways:
Ensure that the business can continue without the need for mass gatherings, such as home delivery or personal shopping.
Adapt what is sold:
Meet the change in customer behaviour and demand; a corner shop may stock stay-at-home products like puzzles or board games.
Change the purpose of the business:
Remain operational by branching out to make masks and scrubs for example.
Sell content or expertise:
Stay open despite the inability to sell usual goods or services by offering advice, tutorials, online classes or virtual quotes.
Offer home-based options to your products:
Create something that replicates your experience for your customers at home, such as home facial kits and pampering products, craft boxes or cookery supplies.
We know that things have been very tough, the lockdown has decimated revenue, threatened livelihood and put the country on hold, but now it’s time to prepare for what comes next, and we are here to help you get Back to Business.