How long will you “ride it out”?
Discussion
CV19 will obviously touch every size of business, but this question is mostly aimed at the self-employed like me, who I suspect wont get any meaningful assistance during this crisis.
I visit people at their homes and offices, so my work is all but finished - at least for the foreseeable future anyway. There’s lots of talk of “riding it out” or mothballing and I’m just wondering what people here think would be an appropriate length of time before giving up entirely? Like all good self-employed people I’ve got 3 months+ money in reserve, but it seems pointless to let things go on for too long. At some stage it’s got to make more sense just to take any work at all rather than sit and wait for things to turn around - as gutting as that will be!
What will you do? How long are you prepared to wait for things to improve?
I visit people at their homes and offices, so my work is all but finished - at least for the foreseeable future anyway. There’s lots of talk of “riding it out” or mothballing and I’m just wondering what people here think would be an appropriate length of time before giving up entirely? Like all good self-employed people I’ve got 3 months+ money in reserve, but it seems pointless to let things go on for too long. At some stage it’s got to make more sense just to take any work at all rather than sit and wait for things to turn around - as gutting as that will be!
What will you do? How long are you prepared to wait for things to improve?
I have an online retail operation that won't last until the end of the month.
I also work with SMEs as a mentor/parachute exec and, at the moment, the phone is ringing off the hook with people needing disaster planning. I'm also able to consolidate clients' resources to assist them through the uncertainty.
I'm also director of a SaaS company, and we reckon we're just fine. One product ticks over on largely passive revenue, and another is pre-revenue. but funded towards the end of the year.
I also work with SMEs as a mentor/parachute exec and, at the moment, the phone is ringing off the hook with people needing disaster planning. I'm also able to consolidate clients' resources to assist them through the uncertainty.
I'm also director of a SaaS company, and we reckon we're just fine. One product ticks over on largely passive revenue, and another is pre-revenue. but funded towards the end of the year.
My ex wife runs a headhunting company for advertising agencies. She started it with 2 others over 12 years ago.
It became really successful but always suffered cashflow situations. They have 6 staff all on good salaries and bonuses as they pull in a lot of cash.
2 weeks ago it looked like the directors, including her, would finally take a decent bonus.
Today they are giving the staff notice and are giving up the London office.
The 3 directors will try to keep the company going but expect no income for at least 6 months.
Riches to rags in 14 days. A bit like my investments.
All because of a fekin market in China. Unbelievable.
It became really successful but always suffered cashflow situations. They have 6 staff all on good salaries and bonuses as they pull in a lot of cash.
2 weeks ago it looked like the directors, including her, would finally take a decent bonus.
Today they are giving the staff notice and are giving up the London office.
The 3 directors will try to keep the company going but expect no income for at least 6 months.
Riches to rags in 14 days. A bit like my investments.
All because of a fekin market in China. Unbelievable.
Whilst everyones panic buying I've been panic selling!
Managed to cover my mortgage this month by selling anything I own that isn't screwed down which has enabled me to drop my wages to ensure my last remaining staff member gets paid this month! Trying to sell my car and my pickup truck which should buy us some more time, not having much luck there though. Would rather walk to the office and pay the rent/wages/mortgage for another month than not.
We are now focused on helping people who are working from home as we sell smart desks with bluetooth speakers, desk lamps, headphones, speakers etc. so hoping people are still buying for their new home offices!!
If we don't hit target each month then we won't last long.
Hoping this government £10k grant comes in, I don't even know if we are eligible or not.
I feel bad for everyone with more staff, more overheads etc. I'm struggling a bit as it is, can't imagine what bigger companies with more staff are going through right now.
Managed to cover my mortgage this month by selling anything I own that isn't screwed down which has enabled me to drop my wages to ensure my last remaining staff member gets paid this month! Trying to sell my car and my pickup truck which should buy us some more time, not having much luck there though. Would rather walk to the office and pay the rent/wages/mortgage for another month than not.
We are now focused on helping people who are working from home as we sell smart desks with bluetooth speakers, desk lamps, headphones, speakers etc. so hoping people are still buying for their new home offices!!
If we don't hit target each month then we won't last long.
Hoping this government £10k grant comes in, I don't even know if we are eligible or not.
I feel bad for everyone with more staff, more overheads etc. I'm struggling a bit as it is, can't imagine what bigger companies with more staff are going through right now.
croyde said:
My ex wife runs a headhunting company for advertising agencies. She started it with 2 others over 12 years ago.
It became really successful but always suffered cashflow situations. They have 6 staff all on good salaries and bonuses as they pull in a lot of cash.
2 weeks ago it looked like the directors, including her, would finally take a decent bonus.
Today they are giving the staff notice and are giving up the London office.
The 3 directors will try to keep the company going but expect no income for at least 6 months.
Riches to rags in 14 days. A bit like my investments.
All because of a fekin market in China. Unbelievable.
The damage that this thing is doing is incredible.It became really successful but always suffered cashflow situations. They have 6 staff all on good salaries and bonuses as they pull in a lot of cash.
2 weeks ago it looked like the directors, including her, would finally take a decent bonus.
Today they are giving the staff notice and are giving up the London office.
The 3 directors will try to keep the company going but expect no income for at least 6 months.
Riches to rags in 14 days. A bit like my investments.
All because of a fekin market in China. Unbelievable.
A good friend of mine has built up a great business over the last 9 years. Really worked hard at it. He supplies and erects large scale audio/visual/lighting and stage equipment for events such as music festivals, Horse racing, outdoor concerts, etc
He has numerous staff, huge storage warehouse, offices, trucks/vehicles etc.
He makes 90% of his annual turnover during the 6 months over summer, and almost everything has been cancelled for him.
He is now basically ruined.
Nearly 10 years of graft building up a multi-million pound business potentially finished off in a couple of months.
MrSparks said:
Whilst everyones panic buying I've been panic selling!
Managed to cover my mortgage this month by selling anything I own that isn't screwed down which has enabled me to drop my wages to ensure my last remaining staff member gets paid this month! Trying to sell my car and my pickup truck which should buy us some more time, not having much luck there though. Would rather walk to the office and pay the rent/wages/mortgage for another month than not.
We are now focused on helping people who are working from home as we sell smart desks with bluetooth speakers, desk lamps, headphones, speakers etc. so hoping people are still buying for their new home offices!!
If we don't hit target each month then we won't last long.
Hoping this government £10k grant comes in, I don't even know if we are eligible or not.
I feel bad for everyone with more staff, more overheads etc. I'm struggling a bit as it is, can't imagine what bigger companies with more staff are going through right now.
Very sorry to hear, best of luckManaged to cover my mortgage this month by selling anything I own that isn't screwed down which has enabled me to drop my wages to ensure my last remaining staff member gets paid this month! Trying to sell my car and my pickup truck which should buy us some more time, not having much luck there though. Would rather walk to the office and pay the rent/wages/mortgage for another month than not.
We are now focused on helping people who are working from home as we sell smart desks with bluetooth speakers, desk lamps, headphones, speakers etc. so hoping people are still buying for their new home offices!!
If we don't hit target each month then we won't last long.
Hoping this government £10k grant comes in, I don't even know if we are eligible or not.
I feel bad for everyone with more staff, more overheads etc. I'm struggling a bit as it is, can't imagine what bigger companies with more staff are going through right now.
Lord Marylebone said:
The damage that this thing is doing is incredible.
A good friend of mine has built up a great business over the last 9 years. Really worked hard at it. He supplies and erects large scale audio/visual/lighting and stage equipment for events such as music festivals, Horse racing, outdoor concerts, etc
He has numerous staff, huge storage warehouse, offices, trucks/vehicles etc.
He makes 90% of his annual turnover during the 6 months over summer, and almost everything has been cancelled for him.
He is now basically ruined.
Nearly 10 years of graft building up a multi-million pound business potentially finished off in a couple of months.
That’s the thing the world has never really seen (or not in my lifetime). An immediate halt of everything. 2008 seems like a walk in the park compared to this. A good friend of mine has built up a great business over the last 9 years. Really worked hard at it. He supplies and erects large scale audio/visual/lighting and stage equipment for events such as music festivals, Horse racing, outdoor concerts, etc
He has numerous staff, huge storage warehouse, offices, trucks/vehicles etc.
He makes 90% of his annual turnover during the 6 months over summer, and almost everything has been cancelled for him.
He is now basically ruined.
Nearly 10 years of graft building up a multi-million pound business potentially finished off in a couple of months.
I feels weird sense of guilt that through all of this financially we’ll be okay. We provide essential services to local authorities, so we’re not going anywhere.
My brother is in a terrible position, he’s about 2 years into his venture and has literally all of his foreseeable work cancelled and hasn’t been going long enough to have built a decent safety net. I’ll keep him above water if needed, but can’t continue to do so longer term.
My brother is in a terrible position, he’s about 2 years into his venture and has literally all of his foreseeable work cancelled and hasn’t been going long enough to have built a decent safety net. I’ll keep him above water if needed, but can’t continue to do so longer term.
Doofus said:
Household luxury goods.
Not sure what you sell but is any of it relevant for improving working from home?We've seen a lift in certain items because people are clearly making home offices. It's not enough to make a dent yet but we're shifting ads towards it from tomorrow.
Remember that if people are working from home then they still have a job and are likely still getting paid whilst saving money now by not commuting, not buying lunch, not buying coffees etc. So there's still a market. (at least that's the theory that's keeping me going right now!)
My business partner and I own a small carpet shop which has been trading for 45 years and where we were the fitters before buying it off our old boss 15 years ago.
It pays us an average wage and although we have a very good name and keep moderately busy it literally just pays the wages and the bills each month, we do manage not to have to use our overdraft.
We rent the shop and I cannot see the landlords not wanting their money and we are on a rolling lease and pay it upfront which stops them trying to increase it, then there is buildings insurance, public liability insurance, insurance against one of us dying, tax investigating insurance, estimating van tax and insurance, then bank charges, card terminal, accountant and bookkeeper, also costs a fortune to get rid of waste.
I have paid all our suppliers today and should be able to cover the bills for next month but have VAT coming up and we have saved our corporation tax but if we have to be closed for 12 weeks I think we will be knackered as well as the two guys who sub contract to us.
The last 4 days have been extremely quite both in footfall and phone calls.
Does anyone think that HMRC would allow firms to defer their corporation tax and/ or vat ?
It pays us an average wage and although we have a very good name and keep moderately busy it literally just pays the wages and the bills each month, we do manage not to have to use our overdraft.
We rent the shop and I cannot see the landlords not wanting their money and we are on a rolling lease and pay it upfront which stops them trying to increase it, then there is buildings insurance, public liability insurance, insurance against one of us dying, tax investigating insurance, estimating van tax and insurance, then bank charges, card terminal, accountant and bookkeeper, also costs a fortune to get rid of waste.
I have paid all our suppliers today and should be able to cover the bills for next month but have VAT coming up and we have saved our corporation tax but if we have to be closed for 12 weeks I think we will be knackered as well as the two guys who sub contract to us.
The last 4 days have been extremely quite both in footfall and phone calls.
Does anyone think that HMRC would allow firms to defer their corporation tax and/ or vat ?
steve2 said:
My business partner and I own a small carpet shop which has been trading for 45 years and where we were the fitters before buying it off our old boss 15 years ago.
It pays us an average wage and although we have a very good name and keep moderately busy it literally just pays the wages and the bills each month, we do manage not to have to use our overdraft.
We rent the shop and I cannot see the landlords not wanting their money and we are on a rolling lease and pay it upfront which stops them trying to increase it, then there is buildings insurance, public liability insurance, insurance against one of us dying, tax investigating insurance, estimating van tax and insurance, then bank charges, card terminal, accountant and bookkeeper, also costs a fortune to get rid of waste.
I have paid all our suppliers today and should be able to cover the bills for next month but have VAT coming up and we have saved our corporation tax but if we have to be closed for 12 weeks I think we will be knackered as well as the two guys who sub contract to us.
The last 4 days have been extremely quite both in footfall and phone calls.
Does anyone think that HMRC would allow firms to defer their corporation tax and/ or vat ?
There is a genuine opportunity to defer (which I am workingon, but have yet to get a specific reply), or otherwise, to benefit from the Business Interruption Loan scheme announced this week, which will underwite 80% of the loan, but also give you six months interest-free.It pays us an average wage and although we have a very good name and keep moderately busy it literally just pays the wages and the bills each month, we do manage not to have to use our overdraft.
We rent the shop and I cannot see the landlords not wanting their money and we are on a rolling lease and pay it upfront which stops them trying to increase it, then there is buildings insurance, public liability insurance, insurance against one of us dying, tax investigating insurance, estimating van tax and insurance, then bank charges, card terminal, accountant and bookkeeper, also costs a fortune to get rid of waste.
I have paid all our suppliers today and should be able to cover the bills for next month but have VAT coming up and we have saved our corporation tax but if we have to be closed for 12 weeks I think we will be knackered as well as the two guys who sub contract to us.
The last 4 days have been extremely quite both in footfall and phone calls.
Does anyone think that HMRC would allow firms to defer their corporation tax and/ or vat ?
It's an option. Although bank rates are historically low, they aren't keen to lend just now, but when the government is giving away free money, it's worth throwing your hat in the ring.
All of my work, bathrooms and tiling is in peoples homes so will finish my last job next week as work has stopped dead. I have enough in my savings to survive for a year or so. We were just about to have the garden landscaped so rather than paying someone else to do it I will do it myself and that will keep me busy for a few months but after that I would hope to find something even if it is delivering food for a supermarket to reduce the amount I am leeching out of my savings. I cannot imagine doing any other work so will go back to it as soon as I can.
My other half is a nurse so will need all the support I can give her for the foreseeable future as she is likely to be both busy and stressed. I think we are very lucky and feel for those in a similar position without savings or with kids and a mortgage some of whom I have worked with in the past and consider friends. Once we come out of the other side of this I will be passing work to them to make sure they get back on their feet quickly as I can get by on a couple of days work a week.
My other half is a nurse so will need all the support I can give her for the foreseeable future as she is likely to be both busy and stressed. I think we are very lucky and feel for those in a similar position without savings or with kids and a mortgage some of whom I have worked with in the past and consider friends. Once we come out of the other side of this I will be passing work to them to make sure they get back on their feet quickly as I can get by on a couple of days work a week.
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