Prospects for 2021
The short-term outlook for UK businesses operating in sectors badly affected by the present COVID lock-down directives is not good.
Many cannot trade, many others are facing reduced turnover. Both will be struggling to maintain reserves – stay solvent – and cash-flow.
There are strategies that affected businesses can use to reduce fixed costs and minimise demands on their hard-won cash and reserves, but there is a limit to what can be achieved if the present demands to reduce infection continue.
A silver lining?
The present success in rolling out vaccines to counter COVID provide evidence that there may be a silver lining.
The issue is when will lock-down be eased, when will businesses be able to trade, and freely?
A summer return to normality would be most welcome and even the most pessimistic observers would agree that a relaxation is likely to be on the cards before autumn 2021.
What will happen when normality returns?
The UK economy is driven by consumer expenditure. For the last year most of us, apart from the occasional foray online to spend, have saved more than we used to if income levels have remained fairly steady.
It is likely that when restrictions ease apart from heading for the High Street or the local pub we will want to relax and spend. It is that pent-up need to socialise and spend that will drive recovery.
Businesses that manage to weather the present depressed conditions need to batten down the hatches, ready to emerge when lock-down eases to win their share of the released consumer largesse.
How to survive?
We can help. If you would like to brainstorm ideas to keep your business afloat during these exceptional times pleas call so we can consider your options.
Whilst the short-term outlook may be grim, there is every chance that 2021 may see out the worst that COVID has to disrupt our normal economic activity. Hang in there…
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