Originally written by Michael Bush on Small Business
With the events and hospitality industry on its knees, millions of businesses forced to operate remotely, and the economy in decline, coronavirus has a lot to answer for.
One of the biggest issues for the business community is mounting fear. Whether that’s fear as to how the virus will impact the health of valued employees or fear as to whether UK businesses will be able to survive these unprecedented times.
As a result, many businesses have started to cut costs, pause spend and retreat from day to day operations.
For the majority, the first budget to be cut when facing times of adversity is marketing, and for the many business owners frantic with worry about coronavirus, this will come as no surprise.
‘Cutting marketing spend at a time when you need to engage your target audience more than ever makes zero sense’
However – except for businesses physically unable to operate right now – cutting marketing spend at a time when you need to reach and engage with more members of your target audience than ever before makes zero sense.
With that in mind, here’s five reasons why you shouldn’t cut or reduce your marketing budget in response to
Tag Archive for Coronavirus
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How to avoid small business scams during the coronavirus crisis
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
With coronavirus comes a new wave of scams and all manner of misinformation, making small business owners vulnerable.
The aerospace, transport, manufacturing, hospitality, healthcare and insurance industries have already been targeted.
Action Fraud, a crime detection unit, has received 21 reports of fraud where coronavirus is mentioned. This may not sound like much, but over £800,000 has been lost so far.
Ten of these cases involved people attempting to buy masks from fraudulent sellers. One such victim lost over £15,000 for masks that were never delivered.
Other scams are more standard, seeing victims tricked into opening dodgy attachments and giving out personal information. Attachments can lead to websites promising a tax refund from the government or a donation page for people in need.
Predictably, some are exploiting money worries that small businesses are having at this time, like offering bogus loans. Their solutions demand upfront fees, pressuring victims to part with their money quickly.
Reports have been shared of WhatsApp messages telling you your bank is facing difficulty because of coronavirus. To protect your cash, they tell you to push it to a new bank account with alternative details.
Be aware that certain slimy fraudsters are using HMRC branding to
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Two in five small businesses face closure because of coronavirus
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Two in five small businesses face temporary closure because of coronavirus, according to productivity organisation Be the Business.
Thirty-nine per cent of small and medium-sized enterprises (SMEs) have already closed temporarily or plan to do so within the next month.
The research, conducted by Opinium, also found that 7 per cent of firms have already shut permanently, and a further 12 per cent think they are likely to do this within the next month.
>See also: Banks not cooperating with coronavirus loan, complain small businesses
And 23 per cent have made or are planning to make redundancies.
Responding to the coronavirus threat, SMEs say they are equally focused on managing cash flow (31 per cent) and accessing grants and government loans (31 per cent). However, the longer-term issue of supporting their staff was highlighted by a quarter (24 per cent) of firms.
As for the types of support and advice SMEs are looking for, this varies according to size.
For micro-businesses (those with fewer than 10 employees), cashflow is crucial, with 40 per cent stating they need advice on this
Small businesses (10-49 employees) are looking for support to access grants and government loans (31 per cent)
Medium-sized firms (50-249 employees) want
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Short-time working and lay-offs – what’s the difference?
by James Simpson • • 0 Comments
Originally written by James Simpson on Small Business
As Covid-19 continues to spread across the UK, many firms have seen an extreme reduction in business. Social distancing measures introduced by the government may cause a decline in sales, as well as employees choosing to self-isolate, therefore slowing production.
To try and soften the impact, businesses are having to make the decision to let employees work from home or requiring them to take annual leave.
Badly affected businesses, however, may need to take further steps, such as reducing work hours or staff numbers.
To ensure your business stays compliant, here are some steps you need to make:
Look at your options
When deciding between short-time working and lay-offs, it’s crucial that you understand the difference between both, and what they could mean for your business and staff. “Short-time working” is when employees are provided with less work and less pay for a short period. “Lay-offs” are when employees are not provided with any work or pay for a short period, but are kept on as employees.
These are both temporary cost-cutting measures you may use when there is not enough work to go around. Short-time working and lay-offs can help you avoid dismissals or permanent redundancies, while reducing
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Banks not cooperating with coronavirus loan, complain small businesses
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses complain that high-street banks are not entering into the spirit of the government emergency coronavirus loan, pushing them towards expensive products instead.
Entrepreneurs who have contacted Small Business show that banks are either wrongly understanding the Coronavirus Business Interruption Loan Scheme (CBILS) by asking for personal guarantees or are deliberately up-selling it, directing small businesses to take out regular business loans instead.
Alice Douglas, who runs St Curig’s Church bed and breakfast in Snowdonia, North Wales, said that she is faced with £20,000 worth of cancelled bookings because of coronavirus closure. She spent two days trying to get through to her bank, including seven hours of being put on hold, to ask for an overdraft extension. When Douglas – who has been with her bank for 40 years – explained that she needed financial support, her bank asked her if she had another income source over the next few months. When she said no, the bank said it was unable to help.
Douglas said: “I then asked [the bank] about the Coronavirus Business Interruption Loan but they said as I have no income at the moment they can’t do anything. Which defeats the whole
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7 ways to cut staff costs during the coronavirus crisis
by Peter Finding • • 0 Comments
Originally written by Peter Finding on Small Business
Cashflow is a major concern for small businesses during the coronavirus crisis. The vast majority are looking to cut staff costs in order to survive the coronavirus pandemic, and indeed prosper once normality is restored.
But what if you have a talented workforce who you don’t want to lose? We all know how hard it has been to recruit over the last couple of years, especially in tech and for highly skilled positions.
How can businesses cut staff costs during the coronavirus crisis?
>See also: How to get the government’s £10,000 cash grant for small businesses
#1 – Furlough leave
Furlough leave is a new concept in the UK – it’s indefinite leave during which the government covers wage costs. Businesses can recover 80 per cent of wage costs, up to a maximum of £2,500 per month per employee.
It will cover employees who might otherwise have been made redundant, laid off or put on unpaid leave. There is no limit on the number of employees who can be furloughed. The scheme is initially in place until June 2020, although it is expected this will be extended.
While some employers will top up the grant, so employees receive full pay,
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Self-employed Income Support Scheme what it means for you
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: Chancellor Rishi Sunak has announced a Self-Employed Income Support Scheme to help Britain’s 5m self-employed get through the coronavirus pandemic.
The Self-Employed Income Support Scheme will offer a taxable grant of up to 80 per cent of a self-employed person’s income based on their taxable profits over the past three years, capped at £2,500 per month.
The scheme will only become available at the beginning of June and will have an initial three-month lifespan, to be reviewed.
And the Self-Employed Income Support Scheme will only cover those who paid tax on trading profits of up to £50,000 of income in 2018-19.
HMRC will pay the single lump sum direct into people’s bank accounts.
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
Sunak claimed the Self-Employed Income Support Scheme, which will cover up to 95 per cent of people who receive the majority of their income from self-employment, was unparalleled in almost any other country.
Sunak said: “We know that people are worried about their jobs and income … many self-employed people are worried about the lack of support for them.
“This last 100 days have
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The IFS calls for minimum wage cut to help businesses
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Institute for Fiscal Studies (IFS) has called on the government to temporarily cut the National Living Wage (NLW).
They’ve also recommended delaying the next increase in the NLW which is due next month. The wage is set to increase by 51p to £8.72 an hour.
In a statement released yesterday (25 March), the IFS said that the government should seek advice from the Low Pay Commission on the best course of action.
A rise in welfare makes sense while an increase in wages does not in a time where the labour market is drying up, according to the statement.
“The substantial increases in benefits – for example in Universal Credit and in Housing Benefit – announced last week are clearly an appropriate response as the government tries to protect people’s incomes,” said IFS researcher, Tom Waters.
“Whether the planned increase in the National Living Wage to £8.72 an hour as from the start of April still makes sense is open to question.”
He goes on to say that the move to raise National Living Wage to £8.72 was announced in October 2019. The economy looked very different to the way it does now: “It is extremely hard to
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6 tips for cash flow management during the coronavirus crisis
by Mark Perrin • • 0 Comments
Originally written by Mark Perrin on Small Business
As many small businesses shut up shop or adopt new ways of working during the coronavirus pandemic, many are struggling to grasp the package of support measures that had been made available by chancellor, Rishi Sunak.
Among the most significant developments over the past week was the announcement of a new Job Retention Scheme, aimed at helping employers to keep on staff, even if they have no work for them to do.
Employers who commit to keeping such staff on the payroll, can classify them as ‘furloughed workers’ and will be eligible for a grant to meet the cost of 80pc of the worker’s salary, up to a maximum of £2,500, for up to three months.
> See also: Government launches business Coronavirus Job Retention Scheme
However, significant areas of concern remain for employers’, including those working flexible or reduced hours, or employed on zero-hours contracts. News is mixed here as, while the Treasury promises an averaging arrangement to determine the salary of zero hours workers, they have confirmed that the rules will not apply to an employee who continues to work reduced hours.
Further uncertainty centres on the use of self-employed contractors. Workers who fall inside this bracket
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What coronavirus small business help is available for free?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: Many tech suppliers and digital companies are offering their services for free to small business to help it get through the coronavirus Covid-19 shutdown.
Here is a list of software and digital services coronavirus help being offered for free to small business, which will be updated regularly.
Cybersecurity
Kapersky
Kaspersky has made its core endpoint security products free for medical organisations. This will enable healthcare professionals to keep surgeries and hospitals protected from cyberthreats during the Covid-19 crisis.
For six months, the following products will be available for free:
Kaspersky Endpoint Security Cloud Plus
Kaspersky Security for Microsoft Office 365
Kaspersky Endpoint Security for Business Advanced
Kaspersky Hybrid Cloud Security
For more detailed information about the offering and its availability please visit Kaspersky business blog and contact Kaspersky or its resellers.
ImmuniWeb
ImmuniWeb is offering $500,000 worth of cybersecurity solutions for free to qualifying companies during the Covid-19 crisis.
To qualify, a UK small business must have existed for at least two years with less than 30 per cent of revenue stemming from online sales in 2019 and with plans for 70 per cent of revenue shifting online as a result of the coronavirus pandemic.
The following software packages are available for qualifying small businesses:
ImmuniWeb® Discovery
ImmuniWeb®