Business advice offered from insolvency expert from Fareham on how firms can survive lockdown
AN INSOLVENCY practitioner from Fareham has given her top tips for businesses to survive lockdown.
Kelly Semke, an accountant and insolvency practitioner from Quantuma, has given the advice for surviving the current crisis as many businesses are worried about the impact of the third lockdown on trading and cashflow.
She said: ‘Firstly, it is important to take a calm and proactive approach to planning.
‘Business owners who face the challenges head on, will have a much higher chance of survival, compared to those who bury their heads in the sand and live on hope.’
She said it was important for firms to produce a cashflow forecast.
‘Business owners should have a firm grip on cashflow, for at least the next six months,’ she said.
‘A forecast showing the bank balance, expected income and costs should be prepared on a weekly basis, and reviewed and adjusted daily.
‘This will give you visibility as to when cash resources will become low. It will also enable you to plan by looking at the impact on cash in different scenarios.
‘It is also important to take time to review all fixed overheads such as utilities, phones and loan repayments.
‘Many businesses trade with the same supplier for years without review. Is your revenue enough to qualify for a bigger discount? Have you looked at alternative suppliers who may be cheaper?
‘Have you considered increasing your prices? An increase of one or two per cent can make a big difference to revenue and cash.’
She also added that it may be time to look at adapting and offering different services, and she encouraged business to communicate with staff and customers.
She also encouraged businesses to apply for support - and to take professional advice.
Kelly said: ‘There are many government support schemes available including the furlough scheme, CBILS loans, BBLS loans, VAT deferrals, business rates relief and grants.
‘Make sure you have considered utilising these.
‘Take advice from professional advisors. We want to help and we understand that making decisions, when emotions are high, is challenging.
‘There are far more opportunities for business survival if business owners take appropriate advice.’
For a free and confidential chat contact Kelly at [email protected] or 07741 666127.