Worse to come for small businesses in foot-and-mouth crisis
Apr 18 2001
Trade losses look set to continue as a result of the prolonged crisis, not just for the immediate future, but over the next 12 months as well. This is the view expressed by respondents to the Federation of Small Business's recent 'snapshot' survey of small businesses across the country.
"The problems are in the pipeline," commented FSB Press Officer Stephen Alambritis. "There is the quarterly rent, gas, and electricity bills to pay, and no turnover coming in, or deposits to be made into bank accounts."
FSB Policy Unit Chairman Ian Handford added: "Any profit businesses make in the future may cover their overheads but will not make up for losses suffered during the foot and mouth crisis." Over the next year, 75% of respondents estimate that they would suffer losses of up to £20,000, and 80% estimate that over the next 12 months up to three-quarters of trade could be lost.
On a more positive note, staff are not being laid off in great numbers. Four in five small business respondents say they won't have to lay off staff over the next three months. Only one in five businesses are planning staff cuts - between one and four workers.
The FSB has proposed a "Five Point Plan" of new proposals to assist small businesses through the crisis. The measures suggested include making straight grants available, providing 100% rate relief for businesses with a rateable value of up to £50,000 and re-introducing a small employers redundancy rebate scheme.
If you're being affected by the crisis and have found sales slowing down, you need to go into action straightaway - don't just wait for the government to offer new help.
* Speed up the cash flowing in. Cut down on the amount of time your customers take to pay
* Keep close to your valued customers
* Take a fresh look at costs and remember no cost saving is too small to make
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .
(18/4/01)