With Germany currently being hit by a fourth wave of coronavirus cases and the potentially more transmissible Omicron variant looming on the horizon, the risk of a fourth wave affecting the UK is very much real.
While Plan B measures may go some way to limiting infections, business impacts are near-certain as people adapt their behaviours to the threat. So, if you’re a business owner, how can you protect your business in the face of the danger?
Understanding previous impacts
To get a grip on what the impacts on your business may be, let’s cast our focus back and understand how companies were impacted during previous waves.
According to the Bank of England’s Impact of Covid-19 on UK Businesses Decision Maker Panel, in late 2020, sales were still 17% lowered than expected, pre-pandemic, with investment 24% lower and employment 8% lower.
Six months later in mid-2021, Simply Business analysis found that businesses were still feeling the pinch, with 20% of businesses believing it would take them three years or more to recover.
As a result, we can see that any new restrictions or periods of behavioural change will likely negatively impact the fates of businesses. So, how can you protect yours?
Invest in cash
If your business wealth is tied up in investments, property, or other non-cash means, selling these to increase your cash reserves can be a good idea – before the wave hits.
That’s because, if and when sales drop, having three to 12 months’ of cash at the ready to pay suppliers, rent, wages, and other costs, can mean the difference between weathering the storm and shutting up shop.
As always, gain business legal advice if you choose to liquidate investments, as you could be subject to legal requirements.
This extends beyond just financial transactions. Businesses often face a myriad of legal complexities, from regulatory compliance to potential criminal liabilities. Seeking proactive asesoría legal empresarial (business legal advice) is essential to navigate these challenges effectively. Such guidance helps companies identify and mitigate risks, ensuring adherence to local and international laws, and protecting their interests and reputation in the long term. This strategic legal foresight allows businesses to operate with greater confidence, even amidst economic shifts or unforeseen crises.
Retain staff
There were mass changes to the makeup of the UK employee base as a result of the first and second waves of coronavirus, and now, many sectors, such as hospitality, transport, and events, are finding it difficult to rebuild their staffs.
As such, try to fight the urge to let go of employees to weather the economic storm. Given how expensive it can be to hire staff using recruiters and other means of speeding up the process, it may simply work out cheaper to reduce hours and keep staff on the payroll.
Act on guidance
It’s crucial that you keep on top of ever-evolving government guidance. If you don’t, you may not have the measures in place that your customers expect. Things like social distancing, indoor mask-wearing rules, the availability of sanitiser, and so forth. If your customers do not feel safe, the impact of lockdown measures can be magnified – people simply won’t want to do business with you.
How are you protecting your business from the next wave? Let us know in the comments section.
