Five steps to getting through a crisis if you’re self-employed

In this article: COVID-19 has put the brakes on every part of life, it’s stressful especially if you run a small business or are self-employed. We run through a five-point plan to help you get through the challenges we’re facing

Times are challenging, more so than ever if you’re self-employed or running a small, independent business, it’s easy to fall into a state catastrophic thinking, where anything you do looks doomed to failure so there’s little point attempting any tasks, whether work related or in your personal life.

Wrong. Even when times are tough there’s a lot we can do. It won’t necessarily be easy, but we can put this enforced time to good use so that when the crisis is over we can come out stronger on the other side.

Of course, personal circumstances vary, you’ll need to work to your individual needs and make targets that are achievable for you, but here is a five-step checklist that aims to help guide you through the many challenges.

1. Stop and take stock

This may seem logical, if difficult, but think, don’t panic, make plans instead. Remember it’s ok to be scared of the future and shed some tears (men don’t do this enough). It’s worth remembering you aren’t alone, we’re all in the same situation, it sucks, but we can make the most of it.

2. Physical and mental health

This aspect of our lives is often overlooked, but should arguably be at the forefront of your minds during a crisis. Set a routine as if you’re at work, it’s a great way to keep a sense of normality. And although it may be difficult, try to be positive, we will get through this.

We may be separated from people at the moment, but remember to love your friends and family, stay safe, sleep, eat, and exercise – we often don’t have time for these things. Your health and that of others is far more important than a cambelt!

There’s a host of help and support from the industry’s charity Ben, that you can access

3. Personal finances

Look at your income and expenses – keep this separate from your business. When times are challenging your income may well be zero but help from the government is available, although admittedly it may take time to arrive:
a.    Are you getting 80% of your wages if entitled?
b.    Self-employment Income Support Scheme
c.    Apply for universal credit – there are several options here such as money towards rent and other benefits.

If you have mortgage payments, rent, personal loans, car finance, credit card bills that will need paying write to, or email, the lenders now and state that for the next few months you won’t be able to make any payments and ask them for a solution. Make it clear you are willing to pay, just not now.

4. Business finance

Much like your personal finance, don’t put off contacting lenders, the sooner you do so the sooner you’ll be able to draw up a plan with them so you don’t have to worry about rent, business loans, vehicle finance, credit cards and other items. And always remember that there is financial help available and you should be looking into it.

• Small Business Grant Funding
• Business Rate Relief
• HMRC Time To Pay Scheme
• Coronavirus Business Interruption Loan Scheme

5. The future…

The reset button has been hit, so now is a golden opportunity to use downtime to plan the future. Catch up on some technical training, update your website, design advertising leaflets, make some posters, learn about SEO, learn about social media ads or, perhaps, make use of the time to move in a new direction.

For the latest information, advice and support please visit the IMI’s dedicated COVID-19 pages