As the world continues to battle against the spread of the Coronavirus, the lockdown measures placed upon many communities around the world have had knock-on effects on business.
Some sectors are thriving – food delivery companies, door-to-door supply businesses, and at-home exercise apps have seen surging interest.
However, if your product or service is not suited to this harsh business environment, you may find it difficult to keep revenue rolling in. Here are three risks many businesses face in these uncertain times(Coronavirus Lockdown).
Failure to meet obligations
If your line of work features face-to-face interaction or requires access to many properties – tradespeople, those in sales, etc – then you may have found business has dried up.
You might be unable to make appointments that were scheduled before the virus forced so many of us into lockdown, while deliveries might have been made difficult by the restrictions placed on transport.
This is a time when your creativity and business nous is crucial. Can you offer any additional or existing services remotely? Are there other strings to your bow that can keep business ticking over?
Inability to pay staff
Naturally, as business becomes harder, so does life for so many of us. If your margins are tight, you may find yourself struggling to keep up with the wage bill.
Help is at hand in this area, however. The UK government’s Coronavirus Job Retention Scheme has been launched to keep pay coming in for workers across the UK whose employers are struggling.
The scheme has been headline-making news throughout the crisis, so if payroll is starting to give you a headache, look into if you are eligible today. It could protect not just your business, but also the future of your employees.
Loss of business interest
As many have withdrawn into their homes in self-isolation, several operators have also gone into their shell as uncertainty reigns across the business world. This can make striking new deals, finding new clients, and expanding your company extremely difficult.
Some existing clients may even look to renege on their agreements if they are finding it difficult to keep up with overheads in the current climate.
Openness and transparency will be key. Have honest conversations with your client base about what you can still offer, while also discovering whether or not they remain in a sound financial position to pay you for any services that remain in place during the pandemic.
How to protect against it?
You might feel isolated in your personal and professional life during these tough times, but you don’t have to go through the rigmarole of trying to keep your business afloat all alone.
Specific coverage products, such as casualty insurance from Gallagher, can protect your company against a sudden loss of earnings or business. These companies can also offer services to put plans in place to prepare against any future issues.
Hopefully you stay fit and healthy during this period of uncertainty, while your business also maintains its pulse and comes out the other side fighting fit.
