Structuring your business for after coronavirus: Protecting business assets - Wright Vigar
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Protecting business assets

Although there is a lot of uncertainty surrounding both the short and long-term effects of COVID 19, there are still certain actions individuals can do during these uncertain times to protect their assets. Here we discuss structuring your business for after coronavirus and how to protect business assets.

Importance of insurance

Whether it be housing, car, life, or business insurance, now is the time to ensure that you have the best policies available. It is definitely one of the first steps a business owner should take to try and protect their assets. Having insurance guarantees you a certain level of support and it is exactly during uncertain periods like the current pandemic that people can reap the benefits of having this insurance the most.

Insurance has the ability to give you protection and an element of peace of mind by shielding the value of permanence of your most important assets such as your business premises, vehicles, specialist equipment, and even your business itself.

Build an emergency fund

Wherever possible, businesses should have access to emergency savings. It is specifically for turbulent times like the ones we find ourselves in now that emergency funds are made for. Ideally, businesses and individuals should have a 3-6 month supply of cash or cash equivalents. Obviously, there are some cases where this is not possible. In these scenarios, businesses should analyse their outgoings in minute detail, delaying or canceling non-urgent expenses. Doing so can ensure your company improves its liquidity for the coming months. As we have mentioned in other articles on this subject, cash is king during difficult economic times.

Having emergency savings can help you and your business face the challenges that may arise in the future and can help you cope with costs that are not covered by your insurance.

Don’t stop investing

Although this point may seem to contradict the previous one on saving, businesses and individuals should not simply stop investing. Investing should always be seen as a long term strategy and never short term. Bearing this in mind, having some investments is something that should be continued as it can help your financial position further down the line.

Managing an investment portfolio during difficult times can be challenging, but people should remember that instead of constantly trying to predict when the market will go up or down in the short term, a longer-term view should always be taken.

Whereas some may have no option but to amend and make changes to their investment portfolio, the investing shouldn’t stop altogether if possible.

Use downtime to optimise other areas

Although downtime is something a business never wants to go through, they should always use the time as beneficially as possible. This downtime, for example, could be the perfect chance to optimise other areas of your business and therefore help put you in a healthier position financially and for the longer term once the downtime is over.

The full extent of the economic impact COVID 19 will have unfortunately cannot be accurately predicted at this stage. Although these are troubling times for many people and businesses, there are still some actions that can be taken to ensure your assets remain as protected as possible for the future. If you need any financial advice regarding protecting your assets, please get in touch with a member of the Wright Vigar team. Email on website@wrightvigar.co.uk.

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