COVID-19: INCREASING YOUR BOTTOM LINE DURING A PANDEMIC.

UK Coronavirus cases have now exceeded 1 million.
In February of this year most people were unaware of the challenges that lay ahead.
"We are now facing a human crisis unlike any we have experienced".

The Aviation, retail, financial, real estate and automobiles sectors are those worst hit by Covid-19 but all industries have had some impact to a degree. While some sectors have seen unprecedented growth due to the pandemic (Amazon and Lewthwaite’s to name a few) and others have seen devastating effects due to government restrictions, most businesses worldwide have had to reshape their business strategy and workforce. Businesses today are not looking to differentiate within the market; they are simply looking to survive.

Small business owners already have enough on their plate and now they are faced with a pandemic. To support business owners, the UK government introduced the employee furlough scheme at the beginning of this year and it is estimated to be costing the government 14 billion a month. While this is saving many from immediate closure, businesses are still required to pay a small portion of wages. Although beneficial to an extent, those in the hospitality sector admit to not having enough savings to support them for the next six months. Consequently, 41% of small business owners fear their business is at risk of permanently closing due to the pandemic.

With winter drawing near, there are now several vaccines ready to be disrupted to the UK public. This sounds like great news for the nation, but it might be too late for small business owners. Restaurants have been decorated head to toe in tinsel to prepare for the season but with doors closed in Scotland for another three weeks, the celebrations will have to wait.

While the full impact of Covid-19 is unclear, it is crucial that small business owners take action to stay afloat. Many have compared the pandemic to the recession in 2008. Businesses now need to focus on making their supply chains more efficient, engage new audiences worldwide and cut back on excess costs. Walking down the empty streets it is clear businesses are thinking of creative ways to retain their customers. Many have opted for a delivery service; many have set up as a café and others have tried to push online sales. While some creativity will help, small business owners are still facing an unprecedented drop in sales.

The idea of looking internally and reshaping a business seems like a daunting idea. However, making small changes can create long term benefits for any business. While it might seem like the best idea to get rid of staff members, apply for every government grant available and spend more money on marketing campaigns, some of the most worthwhile changes a small business can make are all internal. Ask yourself, ‘How much time do we spend in the office now?’,
‘Do we need an office landline?’, ‘How much do we pay our suppliers to handle the administration side of our business?’, ‘What can we offer our candidates that others cannot?’. Asking such questions can highlight the small changes that need to be made to a business.

At DPI, we have worked with several clients struggling through the pandemic. Our expertise allows us to offer guidance to clients regarding the immediate changes they need to make to their business. Changing suppliers feels like a risk but businesses should consider stepping out of their comfort zone and looking for new areas where they can make considerable cuts. These changes can save money both in the short and long term.

The team at PPS have put together 6 key points for small business owners:

1. Look at your expenditures, even the small ones.
2. Do not be afraid to ask for help.
3. Have open communication with various suppliers.
4. Learn to be ok with failing.
5. Work smarter and harder.
6. Take others advice.

DP International have a wealth of experience in the outsourcing industry. “Master your strengths, outsource your weaknesses” (Ryan Khan, The Hired Group) really sums up outsourcing perfectly for the DPI team. Speaking to over five hundred business owners a week, we are aware of the strain that back-office processes puts on small businesses. Many business owners are left sitting in their offices late at night working through tedious administrative tasks. It is hard to believe this is what they envisioned for themselves when they started up their business. By leveraging a PEO, business owners can delegate all these stressors to another supplier. These suppliers are often those with ten plus years in the industry and will be able to provide a bespoke service to clients.

With possibly another six months in lock-down and the economy only just starting to breathe again, it is important for SME’s to consider outsourcing. About 46% say outsourcing lets them access skill sets that aren’t available in-house. In 2016, one of the big four accounting organisations Deloitte carried out a survey analysing the benefits of outsourcing. They found that 59% of managers said they use outsourcing to cut their business costs. That was followed by 57% of respondents claiming that they had outsourced because it enabled them to focus on ‘front end business processes’.

Consequently, more business owners are considering a move away from in-house staff and instead, looking to outsource. The main benefits of outsourcing include:

- Improved Business Focus
- Wider Range of Options
- Increased Efficiency
- Cost Savings
- Gaining a Competitive Advantage

If you are a small business owner and would like to know about the world of outsourcing, progressive payroll services can give you a copy of our client brochure. Take the next step to protect your business, your team and consider outsourcing your back-office processes.

Covid-19 shook the nation, bringing challenges to all business owners. New vaccines bring some hope to businesses. However, many challenges still lie ahead. Business owners need to remain diligent and view the pandemic as a lesson so that they are more prepared for future challenges like Covid-19.