A perspective on the future

It does seem to be all bad news at present - with the exception of the successful rollout of the various vaccines. Even one of our partners has been quite ill with COVID - and in January when we're just a little busy too!

From a business perspective the topic that seems to be on many lips is redundancy.

Redundancy - the employer's side

Good employers don't want to get rid of staff without good reason, but from a practical point of view, sometimes there really isn't much choice.

In the early days of the first lockdown, the first resort of most employers was to furlough staff who couldn't work because of reduced business due to the lockdown restrictions. Now we're nearly a year down the road, some businesses simply can't do that any longer - there isn't the business to justify keeping on staff where the roles don't exist. 

It's also essential to manage staff carefully to ensure redundancy payments don't cripple your business.

There's one important thing to understand about redundancy - you don't make a person redundant; you make the role redundant. That means you can't then employ anyone else in the same role. 

However, you can't use redundancy to get rid of people who aren't performing well, or you simply don't like! That still requires you to go through the process of a disciplinary for poor performance - and risk unfair dismissal if it's simply a personality conflict.

Redundancy - the employee's side

It's never easy to go through a redundancy process, but when it happens it's important to look at what you can do, rather than what you can't.

Ideally, get some advice. Some employers offer a package, but not all are able to afford it at this difficult time. A careers advisor may be able to give you help with things like job searches, updating your CV and maybe some coaching on transferable skills.

You can also get advice on your rights from ACAS and the Citizen's Advice Bureau.

It may be the catalyst for you to decide to start your own business, especially if you're getting a redundancy payment.

Without a doubt there are opportunities in new and emerging markets in this changing world we live in. 

Our advice is to carry out rigorous due diligence before embarking on a new venture. Despite all the hype, becoming an internet millionaire isn't as easy as it may appear!

Setting up a new business is a job that needs doing properly - to protect you and your business. Talk to us - or your accountant if you already have one, before taking the first steps.

Looking long-term

Even if things get back to 'normal' tomorrow, many businesses will feel the effects of this period of lockdown 2-3 years into the future. For instance, while construction work has continued, new projects aren't being planned and this will mean a reduction in work (and income) 18 months or more ahead.

It's important to guard against the long-term impacts by building reserves if possible, and now is NOT the time to reduce marketing and sales activity.

It may be a good time to diversify. What other type of work could your business carry out? What other types of business could you serve? It's not necessarily a full pivot, but more extending your reach so all your eggs aren't in one basket.

We're always happy to discuss business plans, new business set ups and business finance. If you're looking for practical advice and an innovative approach to the long-term health of your business phone us on 01992 554444.