During the COVID-19 pandemic the government introduced the furlough scheme. Under the scheme the government paid the wages of people unable to work, or whose employees couldn’t afford to pay them. The monthly limit individuals could receive was £2,500, with the government paying 80% of this.
As the UK emerged from the coronavirus crisis and more of us returned to work, the number of people on furlough decreased and in September of this year (2021) the scheme ended.
In this article we’re going to take a look at the working world through a post-corona lens, focusing on where you, as a business owner, should be focusing your time and effort in-order to survive and thrive.
Business running costs
The first thing on the list to review should be your business running costs. What’s changed in the wake of COVID and furlough, where have there been price increases or decreases and how has your industry and supply chain been impacted.
When reviewing how your business is looking in Q4 2021, this is where you need to start. The cold hard facts and figures will give you the reality you need to plan effectively for the future.
Working capital and cashflow management
Following on from business running costs comes working capital and cashflow management. Cashflow is the lifeblood of any business, so ensuring your business maintains a positive working capital position now that government support has ended is going to be crucial moving forward.
Here at itsettled, our credit management platform has been designed to collect invoices fast and in turn, improve cashflow.
We’ve already covered business running costs and ensuring the money owed to your business is coming in within the agreed payment terms. The other way of improving cashflow and profitability is to focus on your sales pipeline. How has the market changed in the last 18-24 months, are there new revenue opportunities?
Review your sales pipeline and ensure that there is enough revenue coming into the business to meet payroll demands in Q4 2021 and beyond.
Future workforce needs
As the world has changed so have the needs and wants of both employees and employers. It’s important to recognise this and where possible, turn it into a competitive advantage for your business.
Countless surveys including this one from Gartner have revealed that workers who spend the majority of their day in front of a computer screen favour either working from home or a hybrid working model (some time at home and some time at the office).
As a business owner this could help you reduce your rent and other associated costs. One option proving successful is that of shared workspaces. These provide flexibility and enable you to scale up and down depending on the needs of your business at a particular time.
itsettled’s cashflow and credit management platform makes it easy for business owners to collect their invoices faster and improve their cashflow. It’s completely free to get started (no credit card required) and only takes two minutes to set up.
Find out more by heading to itsettled.co.uk.