SME’s must adapt to secure their futures

Businesses the world over have experienced unprecedented times.  For those who have survived Covid-19, the challenges have begun as to how they respond to a changed business environment.  Callan Jones from Simple Secure Finance, the specialist commercial finance advisory firm gives his view on what SMEs need to do next and why getting the right commercial finance advice is crucial.

 Since Boris Johnson announced lockdown measures were to come into force in the UK on 23 March, business owners and directors have been focussed on strategies designed to support the survival of their firms.  Having taken advantage of the impressive array of support offered by the Government, those that have survived are working hard to help their firms recover from what has in some cases been a devastating time. What is certain is that they need to adapt to a changed business environment if they are to secure their futures.

 We have witnessed many examples of innovation and adaptation throughout this crisis as businesses have responded to customer needs: retailers have moved online having introduced online ordering and home delivery services; restaurants have turned into pop up shops and takeaways; importers have diversified into PPE supply and distilleries have adapted production lines to handle hand sanitizer.  Workplaces have changed too.  The work from home debate has been pushed to the fore with many businesses surprised at easy the transition has been and how well it has worked.  As businesses return to the workplace, the flexibility to work from home will remain.  With more people doing so it has resulted in a change in purchasing habits with many businesses impacted by the lack of footfall that the office trade brought.  Again, we have seen coffee shops resorting to mobile services to keep trade alive.

 The UK business population has shown that it has what it takes to adapt and innovate through this crisis both now and in the future.  However, the future continues to look challenging.  The UK has (as expected) entered recessionary times with the media full of high-profile firms announcing job losses as they cope with a decline in demand as customers habits have changed. 

Alongside the ability to adapt trading models, businesses need to ensure that all areas of their business continue to be relevant and up to date.  From ensuring they have the right skills in their team;  that their technology is up to date and supports the increasing digital transformation and they continue to market themselves to existing and new customers.

 These changes will require investment which will put a strain on available working capital.   The Governments support package has been gratefully received but is already or will soon be a distant memory.  Ensuring a business has access to sufficient funding to continue adapting and innovating needs to be on the agenda. How businesses finance themselves moving forward may too change and business owners should be open to challenging themselves to ensure the most practical and relevant solutions is being used so they are best equipped to take advantage of new opportunities that arise.  There are so many different funding solutions that many businesses are still unaware of so getting the right commercial finance advice is vital.  For firms investing in new technology, asset finance may be a viable option; for businesses importing from overseas, trade finance may be the best option.  Whatever the business requirement there is a solution to match.

 One thing is certain, the changes that businesses have made and will continue to make will ensure they stand a better chance of surviving these current climes and  securing a bright future.