A quick post to document an update in light of the coronavirus pandemic. Firstly, how is everyone coping? There’s been a lot of coverage on coronavirus making Brexit seem like nothing in comparison. With the UK still on lockdown, what has this meant for the business and what I would imagine other small businesses operating in the UK?
Well, it’s not great, but I’m in a position that I am still extremely grateful. Unlike restaurants and businesses operating in hospitality who have essentially have to stop any form if income generating exercises, the digital arena that I work in still continues to chug along. In total, we are around 20-22% down on turnover currently (1/5). A significant amount in terms of (£) but nothing to really break a business as normally it results in just tweaking / optimizing costs and outgoings.
I don’t know of many others in the FIRE community that run / operate small businesses – It would be great to hear from you if you’re out there! Many I believe are employed that I know of / speak to regularly. How have your jobs been affected? If anything?
Over the last few weeks things have been tough this end. The pressure to deliver results and to re-assure clients is even more critical. Some clients do panic and as a result call us for extra reassurance. This takes a toll on us (particularly mentally), even talking with our clients and providing that reassurance is a mental drain. Fortunately our staff really have stepped up to the mark and have all put in that extra effort to see us all through this. With some media outlets mentioning that the economic impact of Coronavirus could be worst than any other financial recession in the past, I am thinking optimistically, if we can survive this, we can survive anything!
In light of all this, we’re just going to keep chugging along as best we can. My financials and savings rate should remain relatively unaffected – though a drop in income over the course of the next coming months.
Hey Jason,
Good to hear you are managing to swim above the tide so to speak. It’s good that you are managing expectations of clients.
I am an SEO like yourself but run educational websites (aimed at teachers). Despite work continuing we’ve seen a slight slow down but we are doing far better than many so are happy.
I think what happens in times like this people panic and ultimately it has a knock-on effect. It doesn’t help with the UK Media.
Do you think you will be able to retain all staff throughout this? Has working from home made you think twice about current offices and long term plans?
Ryan
Hi Ryan,
Good to hear from you and glad you’re keeping head above water. Very strange times indeed we live in. I couldn’t imagine what it must be like to be a hospitality / leisure based business right now.
At the moment, if we continue to go as we are, we should be able to keep all the staff on the books. Though if we drop another 10-15%, we will regrettably have to let a few go.
When I first setup the business (6 years ago now!) I did it all from my home, so home working for me isn’t too bad. Though I know for some it’s a real struggle to get motivated / in the right frame of mind. Whether or not we’ll cancel the offices (fortunately they have reduced their rent significantly which is a great help) I don’t know yet.
We’re taking it each day by day at the moment!
Are you based in an office / or work from home?
Cheers,
Jase
Hi Jase
Good to read that you are doing ok. I’ve only seen sad and negative news about small businesses so it’s good to see that your business is still chugging along in this tough environment.
Our company has shed some jobs over the past month, others have been furloughed. My job appears to be safe for now as I still have work to do, even with declining/departing clients.
I’ve been working from home since 16th March – it’s not so bad but it’s not something I want to do long term!
Hey Weenie – Ahh glad to hear that you’re a.ok! All good / better this end – been quite stressful and a few times have had to walk away from the computer screen, but in general all good!
Hi Jase,
I work for quite a small company- mostly digital, so haven’t been too affected yet- however some of our clients are starting to delay/pause work etc. So having to think about how to rearrange workforce etc- the government scheme to cover 80% of wages seems like a good option to be honest. It’s going to save my wife’s business from having to fire nearly everybody- and then rehire, so I’m actually quite impressed at how quickly this was brought about.
I really hope we can start to see some more “normal” coming soon though, surely we can’t keep on like this for another year?
Hey Southwalesfi!
Ahh glad to hear you’re a.ok dude – Yeah I’ve been super impressed with the government / turn around for the furlough based work they’ve implemented.
Let’s hope normality does resume soon! If we can survive this, a recession should hopefully be a walk in the park!
Hey Jase
Me and mrs fu both run our own small businesses. we will be ok hopefully.
Hope your business keeps going and you keep well
Mr fu
Hey Mr Fu!
Ahh glad to hear you’re a.ok and small business is going well? It feels that we’re having to work doubly hard at the moment. Certainly keeping me glued to the computer screen at the moment. Some days I do have to walk away (slightly stressed) but just taking each day at the moment.
Cheers