How do you need to restructure your business post-COVID-19?

I found this interesting posted by The ability for businesses to re-start is good news, but companies should proceed with caution as they take steps to re-open. There are some uncertainties, including employee confidence, health and safety, customer appetite, supply chain resilience and, of course, working capital needs.

 Supply and Demand

 Working out the demand for products and whether supply chains remain intact, and can meet demand, is key. Have suppliers coped during lockdown and are they capable of sourcing and delivering to you? Alternative cheaper sourcing, de-risk by diversification and shortening the chain should be considered.

 Businesses need to communicate with customers to understand how COVID-19 has affected them. Directors need to Change the way their business operates with the use of social media, on-line and home delivery, product shift and freebies but also look at how to reduce spend on those business essentials.

It might seem difficult to reduce spend on your essentials, but there are ways to do it.
Try reducing your utility, find ways to limit power, gas, or water consumption. Turn down heating and cooling outside of business hours.
Ensure that the phone system you have is fit for purpose, ensure your mobile phones are optimally used.
Make sure you are not overpaying for the privilege of taking payments – 1.75% is not a good card rate.

If you are B2B then check your customer credit rating regularly to ensure you are happy to trade and will be paid

 Cash Flow

 You will need to carefully consider the business’s cash and credit position. Businesses should work up Plans A, B and C – best- and worst-case scenarios, and something in between.

 Profitability will be challenged from all directions; deferred liabilities taken on such as rent and PAYE deferrals, CBILS interest payments will start all too soon, and deferred March 2020 VAT payment.

The furlough will taper from August meaning employers will need to pick up some of the costs. Will these mean you need to consider redundancies.

Finance directors need to identify and provision for bad debts. Perhaps credit terms need reducing or cash on delivery and increased prices.

Directors’ Duties

Directors can take some comfort from the temporary suspension of wrongful trading from 1 March probably until at least the middle of July. However, directors should still act prudently and make sure

they seek professional, restructuring advice and keep an audit trail of their key decisions.

Finally, as a business considers how it can try to return to a degree of normality, you should bear in mind that the government is introducing new rescue tools – a Corporate Moratorium and a Restructuring Plan, which will probably be available by the end of June.

How Gardele Business Solutions can help

Our Services

Gardele Utilities offer great industry rates for your business, including a free utilities and telecoms review service. We can cut business costs for: - Gas - Electricity - Water 

Gardele Telecoms for your Land Line - Mobile Phones - Broadband - Business Grade Wi-Fi dedicated with Meraki Go for card payments.

Info on Hold is a service we can add to your phone system for your customers to listen to your message.

Gardele Payment Solutions, Our Merchant Services offer the best rates on fixed, mobile, and virtual card payment terminals and ePOS.

Gardele Finance are a commercial finance broker working with a large panel of lenders from the High Street to private lenders to assist you in obtaining the necessary finance to help your business.

Company credit reports made simple. Our new business credit referencing service give you access to company credit reports and scores on an ongoing basis

Throughout our clients’ business life, we at Gardele are here to help.

Tel: 01204 492210