Getting the best return for when we all return.
These are strange times for any business, not least recruitment. But in spite of the lockdown and the economy grinding ...Read more
None of us have ever seen anything like it; the pandemic and its associated lockdown have caused unprecedented disruption to virtually every business, including recruitment. While much of the situation is beyond our control, it’s vital to manage as much as you can to help your business survive – such as your cash flow.
For any business – especially now – cash is its lifeblood. Recent figures from the Recruitment and Employment Confederation (REC) suggested that for around three-quarters of recruiters, cash flow was their main concern. And that almost 90% of recruiters were planning to access cash through the government support schemes.
So what can you do to keep the cash flowing? How can you best manage your business through this crisis, and come out the other side in good shape?
Get the full picture
Now more than ever, planning is crucial. Take a look at your last 6 months’ financial records to get an idea of incomings and outgoings to help you plan realistically, then prepare a 13-week cash flow plan to give you visibility over the next quarter. It’ll help you make predictions as much as possible, although with the ever-changing situation you need to update your plan at least weekly, if not more frequently. Having this plan in place will then help you work out what other support you might need.
Stay close to your clients
Make sure you continue to have regular conversations with clients – that way, you can be sure of getting a fuller picture of what’s going on. Talking to them about shared experiences, both good and bad, and their feelings about the next steps will give you a sense of how optimistic they are, what they see happening over the next few months with projects coming back online and what they might need from you. It’s also worth staying close to candidates, so you know their situation and what they are hearing from their contacts.
Manage your staff costs and see what support’s available
The Government introduced the Job Retention Scheme so businesses could furlough staff – if you decide to use it, make sure you not only understand the process but also what impact it has on cash flow.
There’s other support available too – for example, the ‘Bounce Back’ scheme from the Government provides loans of up to £50,000 for small businesses affected by the pandemic, backed by 100% guarantee from Government, interest free for the first 12 months and with no repayments due for the first 12 months.
And you may also be eligible for the Coronavirus Business Interruption Loan Scheme (CBILS). Designed for businesses with less than £45m turnover, it offers amounts between £1,000 and £5m for up to 6 years, interest free for the first 12 months.
Talk to us
In a business crisis, it is important to talk to everyone concerned. If you need any advice or help in sourcing any of the support available our team will be only too pleased to help, whether you are already a client or not. Just call us on 01260 280 290 or send us an email.