Business Action | Midsummer 2020
Midsummer 2020 issue of the independent North Devon-based business magazine covering news about business and enterprise in the area. This issue includes the winners of the 11 categories of the Business Action Awards 2020 and the North Devon Business of the Year. The area covered includes Barnstaple, Bideford, Braunton, Chulmleigh, Combe Martin, Holsworthy, Ilfracombe, Lynmouth, Lynton, South Molton, Torrington, Woolacombe and more.
Midsummer 2020 issue of the independent North Devon-based business magazine covering news about business and enterprise in the area.
This issue includes the winners of the 11 categories of the Business Action Awards 2020 and the North Devon Business of the Year.
The area covered includes Barnstaple, Bideford, Braunton, Chulmleigh, Combe Martin, Holsworthy, Ilfracombe, Lynmouth, Lynton, South Molton, Torrington, Woolacombe and more.
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CASHFLOW<br />
HEADER<br />
I have more cash now than I<br />
thought I would – why?<br />
Probablyyou’vetakenouta<br />
loanorusedtheVATdeferral<br />
offer(orboth)andyou’vecut<br />
backspendingtoaminimum<br />
butevenso,whathappens<br />
withcashflowisthatifyou<br />
holdstockorgiveyour<br />
customerscreditthen<br />
stoppingsellingandrunning<br />
downstockactuallymeans<br />
thatyouseeyourbankbalance<br />
improving.<br />
Surely the Covid crisis can't<br />
be good for business?<br />
Intheshorttermit’sprobably<br />
helpedyourbankbalance,but<br />
theproblemcomeswhen<br />
customersstartbuyingagain:<br />
tomeetnewdemandyouneed<br />
tobuynewstockorprovide<br />
servicesthatwon’tbepaidfor<br />
foranothermonth(atleast).<br />
Thismeansthatrightatthe<br />
pointwhereyou’veusedall<br />
yourcashkeepingafloatand<br />
yourbankbalancehasrun<br />
rightdownyou’llneedto<br />
investmoreinyourbusiness.<br />
Inadditiontothisyoumay<br />
wellneedtopayCorporation<br />
Tax,SelfAssessmenttax,the<br />
VATthatwasdeferredfrom<br />
Marchandnewloan<br />
repaymentsallduebeforethis<br />
timenextyear.Formost,ifnot<br />
allbusinesses2021couldend<br />
upbeingtougherthan<strong>2020</strong>.<br />
What can I do?<br />
Aplanforthefutureisvital,<br />
whichmeanssomesortof<br />
cashflowforecast–evenifit’s<br />
Leadership and export training<br />
Petrocisofferingafully<br />
fundedonlinecourseaimedat<br />
leadersandmanagers.<br />
Thecourseisaseriesoffour<br />
two-hourinteractivetutorials<br />
designedtoexploretoolsand<br />
techniquesthatsupport:<br />
Leadership(22July);<br />
TeamDevelopment(29July);<br />
ProblemSolving(5August);<br />
and<strong>Business</strong>Improvement<br />
(12August).<br />
■ Detailsprojects@petroc.ac.uk<br />
CASH COUNTS<br />
Manage it well to keep<br />
your business healthy<br />
Every business has been affected by Coronavirus in some way and<br />
for many <strong>2020</strong> profits are taking a hammering. But survival isn’t<br />
about being profitable – it’s about CASH. Susie Kevern of Pound Lane<br />
Financial Management looks at some of the pressing questions that<br />
she is discussing with clients<br />
International Trade Matters<br />
providesadviceandsupportto<br />
businessesexportingorlooking<br />
toexport.Currentlythereis<br />
governmentfundingofupto<br />
£2,250pertraineetocover<br />
customsdeclarationcourses.<br />
<strong>Business</strong>esmusteithercomplete<br />
customsdeclarations(orintend<br />
tointhefuture)andmustimport<br />
fromorexporttotheEU.<br />
■ Detailsinternationaltrade<br />
matters.com<br />
justaroughestimate‘backof<br />
envelope’style.Thiswillallow<br />
youtoseeif/whenyou’llbe<br />
underpressureandgiveyou<br />
timetoputaplaninplace.<br />
Lookatexpensesinterms<br />
ofhowmuchcashyou’re<br />
spendingonthem;sodon't<br />
justlookatthecostsinyour<br />
Profit&Loss,thinkabout<br />
existingloanandHP<br />
paymentsaswell.<br />
It’sdifficulttopredictwhat<br />
tradingconditionswillbelike<br />
whentheeconomyre-opens.<br />
Yourcustomersandsuppliers<br />
willlikelybeinthesame<br />
situationandrunningshortof<br />
cash;negotiatingdiscountsin<br />
exchangeforfasterpayments<br />
maybeavitaltoolinkeeping<br />
yourbusinessafloat.<br />
What should I tell my staff?<br />
Yourstaff(andsuppliersfor<br />
thatmatter)arefullyawareof<br />
what’sgoingonintheworld,<br />
sothere’snopointintryingto<br />
assurethemeverythingisfine.<br />
Trynottoscarethembut<br />
behonestaboutthedecisions<br />
thatyou’retakingandhowyou<br />
expectthelandscapetolook<br />
whenthebusinessrestarts.<br />
You'llneedtheirsupportwhen<br />
thetimecomes.Youshouldbe<br />
keepingintouchwithanystaff<br />
whoarefurloughedatthe<br />
moment,eventhoughthey<br />
can’twork.<br />
Things are looking really bad,<br />
I'm worried because I have<br />
personally guaranteed loans<br />
in the past<br />
Ifyouareworriedaboutyour<br />
circumstances,itisworth<br />
takingadvicenow;compareit<br />
toyourhealth–ifyouare<br />
worrieditisbettertoseea<br />
doctorandgetqualifiedadvice<br />
onwhetheryoursymptoms<br />
arenormalorifyouneedto<br />
takeaction.<br />
TheGovernmenthasmade<br />
emergencychangestothelaw<br />
toprotectbusinessesthathave<br />
beenbadlyaffectedbythis<br />
crisissoyoushouldspeakto<br />
anaccountantorinsolvency<br />
practitioner.Youcandothis<br />
withoutfearoflosingcontrol<br />
ofthesituation;indeedasking<br />
foradvicenowshowsthatyou<br />
aremanagingyourbusiness<br />
carefullyandallowsyouto<br />
makeappropriatedecisions.<br />
<strong>Business</strong>esgetintotrouble<br />
whentheyrunoutofcash;<br />
havinggoodinformationto<br />
handnowallowsyoutoplan<br />
forthefutureandtakeaction<br />
tosetyourcourseforsuccess.<br />
■ Details07801199671or<br />
poundlane.co.uk<br />
6 business action | <strong>Midsummer</strong> <strong>2020</strong> | business-action.co.uk