What’s the best way to reduce my overheads?
- We discussed this earlier, but in this current situation you can either postpone, reduce or cut your overheads as a business – all of which will take a bit of effort. Start with the things that will have the make the most impact over your short-term plan.
- Big ticket items: Rent, rates, loans, VAT, Tax – some of which may qualify for government support, subsidy or referment.
- Remember; If you defer payments you must think about how you will catch-up with them later on.
- Be clear about what your entitlements are – don’t listen to word of mouth or make assumptions. Get the information
- It’s best to contact relevant parties directly (gov.co.uk or HRMC) or talk your bank or business manager.
- If you’re looking at furloughing staff - you must be clear about entitlements and process around wage subsidies etc; so that you when you communicate with your employees they know where they stand. Again gov.co.uk is the first place to start, but Employee Benefits or HR Magazines can provide excellent advice. There are lots of HR Advisors out there too – and we’ll be running a Webinar focusing on Managing HR Challenges and Issues next Friday, 17th April. Remember when the upswing comes you’ll need these guys.
- Finally, I cannot stress the importance of communication. We all want to stay in the game so talking to your landlord, credit card companies and so forth may really ease the situation – they will still want your business at the end of all of this.
- Communications, clarity, patience and flexibility are the watch-words here.