With the exception of supermarkets and other essential outlets, retail stores have shut their doors for the foreseeable future as part of the government’s measures to restrict the spread of Covid-19. For the thousands of on- and off-course golf shops around the country, it’s been a case of downing clubs, shutting tills and locking the shop door.
Since the ‘lockdown’, many pro’s have taken to social media: running free lessons and drills, Q&A videos, webinars and fun competitions. We’ve also seen photos of some amazing back garden set-ups and practice areas… Let it never be said that any golf professional didn’t have a genuine passion for the game!
Remember, though, lockdown isn’t going to last forever and, apart from honing your golf skills, what can you be doing now to prepare your shop business for the rest of the season? How can you get prepared for when doors open again?
Firstly, it’s crucial not to make any drastic, rash decisions now. If your business has firm foundations, there’s no reason why you won’t get through this and be able to make a success from the rest of the year. There is help out there from the government and there are enough options on offer to provide short term assistance for most businesses.
That settled, it’s now time to think ahead. Over the next few weeks, we’ll be looking at 3 key areas to focus on to make sure you can hit the ground running when your shop re-opens: Cashflow, Budgeting and Planning for Re-Opening.
Getting the Balance Right
Fundamentally, cashflow is about your incomings and outgoings. It’s not always about making more money – rather, cashflow is the balance between what the business is spending and money coming in. It’s essential to maintain a good grip of your cashflow at all times, and now, it is perhaps more important than ever to know your cashflow picture, and to be aware of expenses coming up over the next few weeks.
“Use this time to tackle cashflow worries head on. The clearer the picture, the better placed you are to action it”.
The key is not to ignore your cashflow, no matter what it looks like. Accepting the reality of how much cash is going out of your business might seem a scary thing to do, but that doesn’t mean you shouldn’t do it. Use this time to tackle cashflow worries head on – the clearer the picture, the better placed you are to action it. The objective here is to understand what your business looks like now and what it might look like in 3, 6 and even 12 months’ time.
Cashflow Top Tips:
- Don’t panic.
- Work out what’s coming out of the bank over the next 3 and 6 months.
- What cash is coming into the business? Is there any cash owed to you? Take into account any Governmental aid or loans
- Look at your stock holding and speak to suppliers to see how they can help with deferrals. Within XPOS, you can use the Stock Turns and Valuation report (find it in All Reports, Stock) to get the latest stock numbers. If you have time (and it is safe to do so), it would be worth carrying out a stock take and confirming cost prices before running this report.
- Find out from suppliers what the options are. Many will be happy to defer payments. Although your stock levels may seem high now, just sending it all back is not a solution – you’ll need to sell as much as you can when you reopen (more on this at a later date).
- Use our invaluable cashflow template to keep track of incomings, outgoings, overheads, PAYE, etc. Input your own numbers: stay on top of your business and be ahead of the game. The template could also help with applying for loans.
- Talk to your staff. You don’t need to do this on your own. Better to be honest with your team and let them work with you to find solutions.
XPOS is here to help you during the Coronavirus outbreak. While shops are shut, we remain firmly open for our customers. Follow us on our social platforms and get in touch with any questions about your XPOS system, or retail business during these unprecedented weeks. Contact us via the CHAT button on our website, call or email firstname.lastname@example.org