Updated: Apr 24, 2020
COVID-19 has impacted every single one of our businesses and revenue streams.
It's very important to think about what to do next, which is a challenge, if you are in fight or flight mode. We at SOS have established a simple framework that enables you to do the right thing. You can use one or more of these options if you aren't continuing buisness as usual:
Innovate (Re-invent or pivot your business)
Hibernate (Minimise impact by reducing overheads)
Liquidate (Benefit from chucking in your bad cards and getting a better hand)
Option 1 - Innovate
If you want to reverse the effects of C-19 and continue in business then you need to innovate.
You could also be exploring new opportunities or thinking of how to use your down time and capacity effectively, in which case innovation is for you.
Lots of businesses don’t understand what innovation is, or even how to start innovating. Quite simply, innovation is doing things differently, in a better way. Innovation is different to invention, so you don’t need to come up with new ideas, necessarily, just new ways of doing things. An ideal way to innovate is to adopt technology. Did you know digitally enabled organisations are up to 25% more profitable?
You may also just want to take some precautions; You haven't taken a hit yet, but you feel the need to explore because you can see the storm on the horizon.
Check out our blog on Digital Transformation which provides guidance on innovating using digital tech. Other areas that you can innovate in are new products and processes. Our list of partners include Universities, so we have access to all the support, advice and guidance needed to help you get your thinking hats on and make that change.
Did you know there are huge tax benefits and reliefs for businesses undertaking Research and Development activities?
So what are you waiting for get in touch with us and let us show you how to innovate and provide you with all the support you need to succeed.
Option 2 - Hibernate
This is fundamentally what the Government is hoping everyone will do to avoid liquidation. And given the significant support, the question is why wouldn’t you, if you know you have a future. Stopping the cash outflow is critical if this is an option for you.
Things you can do to keep your business going using absolute minimum resources:
Reduce your overheads by getting rid of unecessary or unwarranted costs - Discuss with your current suppliers and agree a holiday period or cancel contracts where possible. Enter into communication with your landlord or mortgage provider to see if there are any payment holidays you can take too.
CBILS – the Coronavirus Business Interruption Loan Scheme is a loan, you need to pay it back. So make sure that you factor the repayments into your future cash flow forecasts. You also need to make sure you business is prepared to make the loan application. You can get some top tips on how to prepare HERE or you can access one of our trusted professional support providers for free by contacting us HERE.
Job Retention Scheme – Make sure you take advantage of the Governments generous Job Retention Scheme, details of which are HERE. But don’t forget this support will end and you need to make sure that you can continue to sustain your workforce once the support is no longer available.
Are you able to rent out your facilities and/or resources to another company?
Option 3 - Liquidate
Whilst this may seem like an extreme option – for some, this may be the best possible action. Many micro business owners especially are emotionally attached to their business and often find it difficult to take this step. If you've exhausted your options, save time and valuable resources by acting NOW.
Talk to us and we can help you to make an informed decision on liquidating your business.
Close down your business - Here's how
Divert efforts and reserves to doing something more productive instead.
Pivot yourself into a new role
Review how your business was affected and record lessons learned
Plan a fresh start, applying lessons learned, and access all of the support that you need through our professional advisors
Success in adversity
No one is sure how long the current situation will last, or how deep the impact will be.
The good news is that there is a growing amount of information available and we'll continue to offer articles, videos and toolkits through this website. Check back to see the latest updates.