Eight-point plan to help North East businesses stay on top of the coronavirus crisis
Insolvency and restructuring trade body R3 has issued an eight-point checklist to help owners and managers cope.
North East chair Alexandra Withers is urging directors to act quickly if they see problems arising.
She said: “The pandemic has obviously had an unprecedented impact on large swathes of the regional economy, and even when the health implications have been overcome, the financial ramifications will very much still be there.
“More than ever, cash is king in business and knowing precisely where you stand in terms of managing your cashflow, outgoings and payment deadlines has never been more important, while keeping lines of communication open with your business’s networks of staff, customers and suppliers is essential.
R3’s checklist for dealing with the business impacts of Covid-19 is:
*Form an emergency response committee: Agree who will decide how your business responds to changes in circumstances, new information and guidance and changing customer needs.
*Know your cashflow: Make sure you have figures to hand and maintain short-term weekly forecasts, so you can prioritise outgoings.
*Begin negotiations with suppliers and/or creditors: An upfront conversation will give you a clear picture of what you need to pay, who you need to pay, and when.
*Check your eligibility for Government support: The Government has announced a range of support measures, and a number of banks have said they will look at customers’ facilities and debts.
*Keep on top of employment contracts: Changing circumstances and new ways of working may mean directors need to rewrite staff contracts to ensure they cover new duties, changed work schedules, or reduced benefits.
*Keep communicating: Open and honest communication is vital in maintaining key business relationships.
*Check and clarify your insurance: Check your business's insurance policy to see whether it includes a ‘force majeure’ clause, which will provide compensation for lost income.
*Seek reputable advice, and the earlier, the better: Taking early advice can make the world of difference.