Brexit. Covid19. Recession. Three turns of phrase which have generated a collective anxiety amongst business owners.
Whether a small staff of ten or a large corporate of thousands; these past few years have considerably tested the metal of business owners across the UK & beyond.
We all know the difficulties some businesses have felt with the impact of Brexit. With the free movement of people/potential staff being restricted; some sectors, particularly in leisure & tourism, have found it challenging to fulfil their employment needs. With changes to import & export rules, some businesses have found that goods have increased in cost & with import duty on top; this has further impacted on overheads & profits.
Covid19 has only exaggerated the uncertainty of the UK leaving the EU & tragically as none of us saw that one coming, many businesses have now ceased trading, unable to weather the storm of Brexit & Covid19.
So now we have ‘recession’ being bounded around in the media. Really?! Insult & injury all rolled into one.
Everyone is feeling the pinch right now & with the UK political landscape seemingly suspended until a new PM takes office; the level of uncertainty for all UK citizens is palpable.
If you are a business owner or even if you are self-employed, there are some things you could be doing now to ensure you protect yourself as much as possible for the coming months of economic uncertainty. One of the most important things is to start talking.
Talk to your bank
Talking to your business banking provider about your financial concerns can not only allow your provider to let you know about any support, but also ensure that you have logged your concerns in the first instance. Financial establishments cannot help if it is left too late & in the current economic climate, they really can give some perspective.
Do you have a business overdraft? If yes, then you understand how reassuring this is when business is slow. Even if you have an overdraft, at times like these, it might be an idea to extend it temporarily to ease financial concerns.
If you do not have a business overdraft, it might be time to put one in place purely as a buffer & safety net.
Talk to your landlord
Do you rent a business premises? Is your rent tied into the RPI (Retail Price Index)?
If your rent is tied into the RPI you could be looking at a considerable rent increase going into 2023. Now would be a good time to speak to your Landlord about any potential increases in rent, to ensure you are prepared for them.
Alternatively, if you know that any rent increase will cause more financial impact on your business, now might be the time to reach out to your Landlord & open a dialogue to see if there is any way to reduce any rent increase & or defer it.
Another alternative to assist with the cost of running your business, is to speak with your local council business development department. They may not be able to offer immediate financial support, but they will have a wealth of advice & information about other agencies which could help.
Talk to your accountant or financial adviser
Now is the time to start looking at your numbers & figures. If you don’t already, perhaps start to have a 3 monthly financial review to help get a better vision of your outgoings & income. Talk to your accountant & or financial adviser about ways to make your money work better for you & how your outgoings could be better balanced in your favour.
Talk to your business partners & management teams
Whether you are a partnership, have a board or shareholders, if you are concerned about the current economic climate & or the threat of recession; now is the time to start conversations with the people directly around you. Being open, honest & transparent can avoid a ‘head in the sand’ mentality & go some way to evaluating options before an economic slide.
When there is financial & political uncertainty, the economic climate can be hard to fathom. Some large corporate business can weather these kinds of storms, but the small/medium & independents can struggle. Opening dialogues, seeking help & advice before the situation worsens is not only a savvy idea, but it could be the choice which saves a business.
Written by Katy-Jane Mason, Executive Assistant for Virtually Smart Ltd.
