"Our Contract has been postponed"
Many businesses may face cash flow problem with the current situation with Coronavirus, due to delayed contracts, suspended orders, job cancellations and un-finished contracts.
Construction industry is especially at risk, due to its nature of work, that is usually at another premises, working on sites and in other people' houses.
I want to share an action plan, that may help businesses to prepare now and take steps to avoid cash flow problems:
1. Assess fixed costs. These are the costs your business incurs, regardless of sale volume: • Rent, rates and premises costs • Admin fees • Fixed salaries • Director’s remuneration • Vehicle costs - hire purchases/contracts hires • Long term Equipment hire and leases • Loan repayments • Telephone, internet • Advertising • Monthly subscriptions
2. Assess current projects completion, and prepare a forecast of money coming in during the following months
3. Consider agreeing a time off for your staff
4. If you think you may need a short-term loan/overdraft - talk to your bank manager regarding Coronavirus Business Interruption Loan Scheme
5. You may arrange a payment plan with HMRC if your VAT bill is due.
Contact us if you think we may help you to prepare for the coming months. What is your action plan?