This is the time to take a Business MOT

We’re part way through the Covid19 lockdown. Easter is over and at the time of writing, we do not know exactly when quarantine will be eased. As the days stretch before us business owners, who may or may not be currently trading, there is time for many to give your company a MOT: to get prepared for the future, whatever this may bring.

We’re going to have to face the fact that business has changed and many of these changes will become embedded in our behaviours for a while to come. We’ve been pushed to work ‘virtually’ almost overnight and we’re using video conferencing for everything from workouts, to conferences, to Friday night drinks – which the HB team really enjoy! Will this just disappear in a month (or three)? We’re not too sure but our 6 point business MOT is perfect for businesses both big and small who are keen to use this time to prepare for the future.

1. Let’s talk about efficiencies

Downtime brings the opportunity to look closely at your business processes and systems and ask yourself if they are working as efficiently as they possibly could. By making a small change to the way you work, or purchase, or invoice, or induct your employees (the list goes on), you may be able to cut costs, increase productivity and make your team happier. Think about how your office or factory is laid out – could you move the printer or a machine to reduce the time a task takes to complete? Are two people doing a task that requires a handover and could you move that task to one person to reduce the risk of miscommunication?

There are many ‘systems’ that you can use to help identify efficiencies and streamline your business – you may have heard of Six Sigma or Lean, to name but two – but a good starting point is to ask your team about what works well and what doesn’t. They are the ones undertaking these daily tasks after all.

2. Enjoy the Cloud

Talking about efficiencies leads naturally on to talking about the Cloud. By using cloud-based software, you can find so many cost reductions (after the initial investment, of course) and can mitigate risks more effectively. Risks such as server downtime, lost data or hacked systems. Let’s take accountancy software (we are accountants after all). Cloud-based packages allow you, and your accountant, to instantly see how much money is in the account, which clients have paid – and which haven’t – and which are your most profitable markets or products – all at the click of a button. You are more likely to be protected from cyber-crime and you don’t need to worry about upgrading software when there’s a new release or patch; all this is done automatically. Cloud can be a huge win-win.

3. Will homeworking become the new normal?

As has been proven over the past few weeks, a good percentage of employees can successfully work from home. Maybe not all the time as interaction with peers and face-to-face meetings are important, but we wager that at least part of the working week could be spent out of the office.

Is this true of your business? With a little investment in technology, and maybe the odd desk or chair for a home office, you could save money on the amount of office space you need. Combine this with other cost savings such as reduced energy bills, car parking and going paperless (or cardless), then this could be a way of reducing some of your fixed costs AND offering your employees more flexibility in their working life.

4. Think about what roles are really needed in your company

Keeping your employees in mind, this could be a time to really think about the roles needed in your business. By taking time to analyse exactly who does what and when, you may find ways to reallocate tasks (see our point about Efficiencies above). Combine this with the efficiencies found through working virtually, you may find that you can free up some team members to concentrate on growing your business or even be able to lower your headcount. We know it’s not great to talk about layoffs but in business you have to be realistic and by trimming costs now, you may be able to increase your team when business is booming once more.

5. Don’t overlook marketing…

Marketing 101: during a downturn, invest more in your marketing and PR so that you are ready to leap ahead of your competitors when business returns. It’s a perfect time to revisit your marketing strategy to review your markets and ensure you are making the most of all opportunities; to update your plan so you know what actions you need to take over the next few months, and to produce all the collateral you need to meet the plan – from brochures to a new website; blogs to even writing that whitepaper or book! As we are slowly released from quarantine, people will buy from the businesses that have remained positively in the forefront of their minds during this period – and as you have a captive audience at the moment, it’s a perfect time to share your business message, sensitively and appropriately. If money is tight, create content for your social media channels or create videos on your mobile phone.

6. Be prepared: introduce quarterly finance meetings

For a long time now, the HB team has propounded preparing quarterly management accounts and holding a finance review meeting. We would use this information to review the current financial position, the markets, and predict future trends. It is clearer than ever that the businesses that regularly review their finances are much more nimble and able to adapt to changes as they have complete transparency over their business position. We strongly recommend using this time to review your finances to identify all the opportunities available to your business and to plan a way forward. We also recommend holding reviews every three months so you join the army of businesses ready to adapt to what life throws at us.

HB Accountants are accountants for business. We understand how you can make sharper, better business decisions when you really understand your business and are keen to deliver this transparency. For guidance or support, please contact Keith or Karen. We’re still working hard to help you make the right decisions.

We hope this information helps you and we are here for you during this difficult time. We will continue to keep you updated as the Government releases new information. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.

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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above