FEATURE


BUSINESS BANKING & FINANCE


Beyond Covid-19 - Why it’s time to start thinking long term


From the start of the Covid-19 crisis, businesses have been focused on day-to- day survival. But that focus can come at the expense of planning for a future beyond the pandemic. Five months on, now is the time for beleaguered businesses to start planning ahead, says Taz Rashid (pictured), managing director and head of East Midlands at business advisory firm Quantuma.


so far have been welcomed, but they have also come with an unintended consequence. Some businesses have now become reliant on it for their survival, leaving them effectively paralysed when it comes to planning for the future. The Government can’t support struggling businesses


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forever, and sooner or later, bounce back loans and deferred tax liabilities will need to be repaid. So, what happens once the funding dries up and the bills start to flood in? The reality is that for some businesses, state support has


provided a temporary stay of execution – and one that would not have existed in “normal” times. But it will be quite some time before we get back to anything remotely resembling normality. Some businesses may be pinning all their hopes on a


successful vaccine being produced, but this is no silver bullet. A nationwide vaccination programme will take months to complete, and even then, there is no guarantee that the availability of a vaccine would restore damaged consumer confidence in the immediate term. For small business owners, in particular, the prospect of


letting go of their “baby” inevitably comes with some powerful emotions attached. But many of those who have been riding out the storm are now rapidly reaching the point where the ongoing crisis will force their hand. These businesses now face some stark choices, and the


painful reality is that closing their doors now may actually be the best decision, rather than holding out for potential further Government funding and simply prolonging the inevitable. There’s no doubt that the Government’s financial support


measures have given hard-pressed businesses a vital boost – just when they needed it most. But that funding is just the start of the story on the road to post-Covid recovery.


hen the economic fallout of Covid-19 first kicked in, the initial response from many businesses was an understandable – and instinctive – one: panic. The financial support packages from the Government


‘Those that can seize the opportunity to plan for their post-funding future will be well positioned to become masters of their own financial destiny once more’


Businesses that continue to rely on Government help –


with no clear plan for how they will cope once it ends – will lose the power to control their own future. Those that can seize the opportunity to plan for their post-funding future will be well positioned to become masters of their own financial destiny once more. All businesses – whatever their sector - thrive on


certainty. But in this highly fluid environment, the only certainty is uncertainty: none of us can predict how long Covid-19 could be with us, nor which new restrictions we could face in the future. However, the outlook is far from bleak. The UK has a


strong backbone of robust, resilient businesses that have already proven that they can successfully adapt to the changing business landscape. If they can keep a cool head and continue to adapt – even when faced with the moving target of Covid-19 – they stand to make it safely through this challenging time.


52 business network November 2020


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