Covid-19 has caused a huge amount of disruption, affecting not only people’s health and finances, but also the financial stability and the health of so many businesses.
Back in the days after the 2008 economic crash, it was sometimes referred to as a ‘once in a lifetime’ event. For those business that felt prepared for a similar event, the financial impact of the current pandemic may have left them looking for way to protect their business going forward against the threat of further lockdowns, pandemics and disruption.
Here, we look at the measures businesses can take to safeguard themselves.
Flexibility is key
One of the key things that businesses can do to enable them to respond to unforeseen events such as the pandemic is to set their business up for flexibility.
One way this is particularly evident in the recent pandemic has been employees’ need to work from home wherever necessary. For organisations that already had measures in places to allow some or all employees to work remotely, this will have been an easier transition.
This flexibility allowed employees to continue working and hopefully bringing income into the business, however remote working is not the only type of flexibility that can be financially beneficial in times of crisis.
The flexibility to stop your largest outgoings is also crucial when it comes to responding to an event like this. One major area of spend for many businesses is their commercial residence. For those that work from an office, the need for the space became largely redundant during the lockdown, however the cost of rent or mortgage payments still had to be paid.
More flexible options such as coworking spaces allow the flexibility of an office when you need it – but crucially allows you to quickly make changes in times of crisis. This recent article looks at how the pandemic may change the way businesses work going forward, for the better.
Another option is to build a flexible workforce. Keeping numbers of permanent staff down to a core team and using specialist contractors to complete one-off jobs and projects can be a good way to reduce unnecessary costs in general.
Of course, if you are using contractors and a crisis hits, it’s important to take steps to look after them as well as your regular staff, but a reduced and flexible team should help to minimise the financial impact in these circumstances.
When lockdown came into effect in the UK, many businesses may have seen the changes they were making as necessary measures to get them through a difficult time before they could return to ‘business as usual’.
As time has gone on, the general view has shifted, and many organisations have realised that what is to come is a ‘new normal’, integrating the positive changes they have made into their normal days.
Not only do most of these changes make it possible for companies to keep working in times of distress, they may also help them work more efficiently (better communication software, new marketing and distribution channels etc).
In general, businesses that are good at making quick changes and being agile are also more likely to stay ahead of the curve and react better to unforeseen circumstances.
Don’t let your cash flow slip
No matter what challenges and opportunities your business is facing, your cash flow will always play a huge part in the outcome for the business. Keeping your cash flow healthy is the best way to increase your financial security.
Coming out of the Covid-19 pandemic, some businesses may find their cash flow seriously depleted, and this should be one of the main focuses for the company as they work towards safeguarding their business.
There are many ways to give your cash flow a boost, and our sister company, Hilton-Baird Financial Solutions, has created this infographic featuring 26 ways to achieve this that we hope you’ll find useful.
If you’re looking for more flexible office space, we’d be happy to discuss your requirements with you. Get in touch by calling 023 8112 5014 or enquiring online today.