OWNERS of small businesses including retailers, hairdressers and builders fear they have just NINE weeks left before being forced to stop trading – despite lockdown being eased.
A study of 1,000 microbusiness owners – those with less than 10 employees – revealed the coronavirus pandemic has had a crippling effect on their finances.
Three-quarters of those polled were unsure how they will continue to keep their business afloat in the coming weeks and months.
A lack of customers, cashflow issues and a constant worry that consumer confidence won’t return quickly enough were their main fears.
Worryingly, 46 per cent of respondents admitted they have already considered permanently closing their doors because of the pandemic’s impact.
Michelle Owens, founder of Small Business Britain, which has partnered with Smart Energy GB to provide microbusiness owners with a series of money saying tips, said: “Covid-19 has been hugely challenging for microbusinesses across Great Britain.
“As lockdown eases and firms get back to business, many are weighing up their financial situation and focusing on how to recover and move on.
“Now is therefore a good time to evaluate your business expenditure and identify new ways to save money.
“Everything from negotiating deals with suppliers, through to reviewing business models and shopping around for deals, should be on the table.”
The research also revealed more than a third of owners have not paid themselves at all in a bid to cut costs over the last few months – with a further 28 per cent claiming they’ve reduced their pay.
One in five have also kept the lights off where possible, and one in six have ensured unused tech is turned off at the socket.
Understandably, business owners have been keeping a closer eye on their expenditure, with a third now checking their finances daily – compared to just one in five doing this before the pandemic.
Spending on energy is the second highest cost for microbusiness owners behind tax.
It also emerged four in 10 microbusiness owners accessed a government grant since March, with more than a quarter using the furlough scheme, and one in five applying for a government loan.
However, 31 per cent had to dip into their personal savings to help keep their business afloat, with nearly a quarter using money from their own current account.
And one in six have borrowed money from family or friends.
The study, carried out via OnePoll, also showed more than a quarter have implemented social distancing measures in order to stay open – with one in five increasing online trade, and a similar number working on an appointment-only basis.
