Business Owner Update 16 April
Business Owner Update 16 April
Last updated: 16 April 2020
00:00 – So what’s the latest on government support? I was just on a call with people in the know, well, they know more about it than I do, cause they all lobbying government and stuff, so they have inside news. So I thought I’d bring that into to the public domain as quickly as I could. just to help you out, just plan your cash flow.
So the first thing is that we’ve had various announcements saying that the furlough will, let’s talk about the furlough first. The furlough grants applications are going to be available on the inland revenue site from Monday. Other people saying around Monday and other people saying around next week.
So it is a little bit vague, but let’s assume that it will be next week. So that means that their, their portal will be open. From what we understand at the moment, you’re going to need to type in every employee who’s being followed individually, unless you’ve got over a hundred employees
01:00 -. Now, none of my clients have over a hundred. We’ve got a few, the 13 of you are 20 and a few, quite a few with a few. all of those will have to be keyed in manually. National shorts, numbers, names, you know, the whole works. And that is cumbersome, isn’t it? And that’s going to take a bit of time. the next thing to understand is, okay, they did say that they were going to make the pants towards the end of the month.
Now. Optimistic. I think so. There’s nothing wrong with being optimistic, right? I’m an optimistic person. All I’m saying is we don’t want to plan our cashflow on that actually happening. Cause if it doesn’t happen, your cash flows on the edge, then that could be dead damaging for you. It may be that the money doesn’t come in to the four to the seventh or the 14th or the 21st of the following month of May.
And that could jeopardize your cashflow if you haven’t planned for it, if you haven’t anticipated in the first place.
02:00 – Now added to that, it seems as though the site will be able to handle about 50,000 applications per day. Now, a day is. 24 hours. Right. And most people are going to be working between nine and five so that 50,000 is supposed to be condensed into those eight hours.
I’m not convinced whether this portal, you know, I don’t even remember when the self assessment stuff came out. The posters get crushing because just couldn’t handle the traffic. They underestimated the traffic. Well, I think that’s what’s going to happen to here. If it, if it isn’t rolled out gradually, but you know, everyone is keen on getting their claim in.
So I’m not convinced that there’s not going to, we’re not going to see some crashes, in that. And so, you know, can you imagine if you put, if you’ve got 30 employees and or even 10 employees and you put nine of them in and then it crashes, you’re going to start again.
03:00 – That would be horrible, wouldn’t it?
So just, you know, you’ve gotta have some patience, a deep breath, and, um, and you know, maybe some relaxing pills. I don’t, I don’t advocate relaxing to them. But you know what I mean? Right. So keep in mind that, it may take, you may crash and you may have to do it again. The next thing to be aware of is that, you know, there’s a, it could be 50,000 a day.
There are about 20 million employees in the UK, the in the private sector, right. And authors. My gauge from listening to some of the feedback we’ve had on our calls of between 70 and 80% of the employees are going to be furloughed now. I don’t know why, but the government thought it wasn’t going to be anywhere near that.
I don’t understand why they thought that that just showed one extended just shows how far out there where in their thinking about what’s happening in the marketplace. Right.
04:00 – And then they must think, Oh, people have loads of cash reserves and stuff, which businesses don’t. Well, you know, partly that is why we launch in this course completely free and you can watch it on demand.
Did you register for it? And you don’t, you don’t get to attend because you’ve got other commitments. I like watching like watching Netflix or playing with the kids or doing some work. It cannot fall out. I remember, then, you, can you get a record from the access to the record anyway. Out of that 20 million, let’s say 80%, um, need to be photo, that’s 16 million, and if the site takes 50,000 a day.
Yeah, you can do the subs, right? It’s going to take a long time to get this in. Now, they may rent it up and it may not be as bad as that, but you know, we just gotta be prepared. So what happens if you run out of cash first?
05:00 – You’ve got to be aware that you made on the cash and you don’t, didn’t cash flow forecasting.
Now is the time. There’s never been a better time to do. Forecasting has never been a better time to. Get into planning because planning can not only save your sanity, but could save your business, or it might be that your business needs to have a plan. They exit so that you can rise again with a Phoenix or which does something different in the new market that may, that may evolve.
Anyway, I divulged them that I don’t want to get into that subject again. Of course, we’ll talk to you about that. And if you, if you’re, if you come on there, we’ll look at some strategies around this whole thing. So the next thing is that, so we’ve got the time lag it might take to put it in. We’ve got, they may crash, you may end up woods.
You’re going to have some, some, patients around it and you’ve got to be prepared that the cashflow. So what’d you going to do is then prepare your cashflow.
06:00 – Now you may be able to get an extended overdraft for the bank, expensive, but that the drug will be paid back as soon as you get the fellow back.
You may be able to get a loan and those loans are taking a while to go through. Another subject. We’ll touch on that today, but I think that only had 6,000 loans approved. And, um, but anyway, we can cover that in more, in more detail in a second. So, you know, you may look at invoice discounting if you’ve already got invoice.
I don’t like it. Was this done? Cause it’s already hard to get out of, but if you’ve got invoice discounting, they may extend it. If you’ve got 70% you may extend to 80%. Well, something that may get you out, although the DETA book is looking really good at the moment. So just keep that in mind. the, the last thing in that strategy is to talk to your employees and go, look, you know, I could make you redundant cause we can’t afford to pay salaries.
07:00 – Or we could delay, we could make me pay 50% now, 30% now and the rest, when the fellow comes in, you could do very, to have a lease. You’re having a conversation, which is. To do, isn’t it? You know, you’re comparing them and you comparing, you know, for, for what may happen. So just bear that in mind.
So let’s talk just very quickly in closing about this loan thing. If you’re interested, if you’re looking at loans, you may realize that it’s getting, it’s hard to get through. You can’t let nobody else’s at the bank banks or whatever. What we’re looking at this 80 to 80%. Coverage by the government, 20% by the banks.
Now I’m loans under 250,000 pounds, which most of my clients are in that category, but yet in Switzerland, they offered a hundred percent loan straight away, and Germany is just switched from where we did 80% to 100% now, and there’s a lot of lobbying on, on government to now make it a 400%.
08:00 – Guaranteed by the government, which would hopefully speed up the whole process because the banks don’t have to then protect the 20%.
But the government just says, look, lend it, and let’s start to keep these businesses in, in, in the marketplace. So then of course, there is this chance off from lockdown being, um, being. Relaxed over the coming weeks, there was just so much uncertainty. So how long have you phone off? It’s a bill, which is why we’re often times quick sessions to answer quick questions so that we keep the thing mood.
And we’ve got a lot of clients that we’re helping at the moment where I’m regular calls with them and they get these regular emails on, um, on what government funding and what to do and how it’s going to work and what’s being released. So if your account is not doing that, just stick around to our website.
Stuff has been produced in there and you’re more than welcome to dip in and get what you need from our website. And of course, if you want to come and work with me on the workshop, it’s going to be completely free, 60 to 90 minutes, depending on interaction we have the questions and answering.
09:00 – We’re going to be doing them next week again. And if you register and you call it a 10 for any reason, we will. Get you a recording if the recording system works with the internet in the moment, flailing a little bit. what everyone watching, watching Netflix and doing work from home, you know, it may, it may or may not so attend if you can.
And if you can’t, maybe the recording work. Anyway, that is it for this, updates on the 1616, the right bull, Thursday, the 16th of April at two 30. let’s, let’s keep our fingers crossed that everything works really smoothly and cashflow flows in from the government. I’m not, I’m not. Expecting it to happen, but I’m hoping it will happen.
So if it doesn’t happen, I want you to be prepared. If it happens, we don’t need to worry about that preparation. It’s an auto three or 10 spent protecting your business for that eventuality or what it’s all about.
10:00 – Plannings. What about preparations or that taking action, which is all my workshop is going to be about as well, or like this is Gordon wishing you well.
Take care all the best. Goodbye.
