We have all been under a tight rein for such a long time that now with the prospect of lockdown restrictions easing, pubs and shops reopening and something close to a ‘normal’ life resuming, people could be forgiven for a spending splurge.
The last year has been a strange one, especially for businesses which has experienced mixed fortunes. Some have been on their knees fighting to survive, some have got through with help from the government or council grants but others have posted record profits as they capitalised on the shift to online.
However, the next few months are going to be equally telling. Whilst those who can might be planning to get their tax bills down by spending, there’s still an awful lot of uncertainty in the economy.
For businesses fortunate enough to find themselves emerging from their first year of the COVID era in a much healthier position, now is the time to actually cement some solid foundations and ring-fence a reserve for the rainy days of the future.
In an ideal world any owner-managed business – or indeed any business – should have a rainy-day fund to help them get through difficult times. The start of the pandemic in March 2020 highlighted just how many didn’t and therefore quickly fell into a dire financial black hole.
For many, the extreme stress and anxiety that followed was exacerbated when the sales tap was turned off. Nobody ever imagined a time would come when the whole country would be closed down with everyone told to stay home. But it happened.
So, what if it happens again? Granted, the Government might be on hand to support businesses as much as they can but having a reserve to bridge the gap between the tap being closed and the support arriving would save many people a few sleepless nights.
This is the perfect time for businesses to re-evaluate their position, start looking towards the future and planning for the “What if..?” scenarios.
We have the benefit of hindsight now to be able to help us build a stronger business platform for the future.
If you have any other questions or would like to know more, feel free to contact us by emailing email@example.com or call the office on 01423 567499