Coronavirus, cash, and your business survival

While vaccine development and its impressive rate of rollout is to be celebrated, the economic fallout caused by Coronavirus has been great and is set to continue.

It is likely you have already responded with widespread change in your business. Over the past 9 months, you’ve found new ways to serve your customers and protect cash flow. But what challenges await and how well prepared are you?

The CBI reports that manufacturers expect a sharp fall in new orders and output in the months ahead. With widespread coronavirus-related disruption, knock-on from overproduction ahead of our departure from the EU, border challenges and delays arising from Brexit.

You can sit tight and hope for the best, but it makes sense to understand the impact this could have on your cash position.

Identify your pinch points and plan how you can avoid and reduce expenditure. What cash needs to be raised from new sources? You must ensure that you are communicating with suppliers, customers and your bank.

Remember, the Chancellor and your local Council are very unlikely to offer the same level of support that you have benefitted from since the start of the pandemic.

As Captain Tom would say, “Tomorrow will be a good day”. But maybe a solid plan today will help deliver his promise.