For any business, the effects of 2020 have been difficult to cope with. Not just because they were unprecedented and have forced us to improvise, but because the full force of the storm is yet to reveal itself. We are still learning what the aftermath of this pandemic will be, and it’s not unrealistic to assume that, at this moment in time, we just don’t know what the long term effects will be. We can be sure of one thing though, and that’s that it’s never been so important to look after your finances. In times of crisis, businesses need to prepare for numerous possible outcomes and logic itself will tell you that, in order to do so effectively, you have to start with your spending.
Cutbacks is a vague word and can imply anything from buying less paper to losing valued staff. But it doesn’t have to be a word you fear. In order to give yourself the best chance at bouncing back after the COVID-19 pandemic, it’s something you ought to address head on, no matter the size and age of your business. Let’s take a look at some of the smart tips on the cutbacks you can make, to help you survive these difficult times.
Use government help
If you are in the UK, you are in a fortunate enough position to be able to look to the government for help amid COVID-19. For some businesses this help can be the difference between surviving as a business and not.
Business support from the government includes business loans, tax relief, and even cash grants which can help you stay afloat. If you take the context of the USA as an example in this scenario, you can see how organizations there tend to provide a fresh start program to their residents and business employers who can make complete use of such programs to exercise tax relief benefits. When compared to the UK, while the measures that they provide aren’t classed as a “cutback”, it’s extra assurance for you which can improve the health of your business finances. Take a look at the gov.uk website’s business support page for more information on getting help in the UK.
Seek professional advice
As much as this sounds like an obvious option, it is one that is often overlooked. Often because it is seen as an extra “expense” rather than a quality investment which can help you survive long term as a successful business. Manchester’s own chartered accountants Alexander & Co specialise in tax advice and business restructuring for startups and established businesses alike. Rather than trying to go it alone, it might be worth getting in touch with them and seeing what sort of help you can get.
From surviving to thriving
The difference between the two starts with mindset. If you aim your sights just on getting by or “surviving”, you are much more likely to only ever achieve that, or less. Instead, try to focus your mind and your enthusiasm on changing the goal posts. Growing that little bit further. Investing in marketing a little bit more. Perhaps even looking at growing your team as far as you can afford. If you are striving for success and you are not shying away from growth opportunities, you are more likely to get where you want to be. Of course we are not suggesting illogical risk taking, just not knuckling under easily in the face of a crisis.
Get in touch with Alexander & Co today, or perhaps talk to their specialist accountants for entrepreneurs for some advice on your next steps.