Business/Island Survival Plan:
1. BACKGROUND INFORMATION ( Specific to your Business)
Our Business was founded —— years ago and employs —– with a turnover of ——. Prior to the crisis, we attracted overnight —- visitors/covers/sales etc
We have had no income since March 2020. We secured finance to survive the shutdown by:
- Borrowing — from our bank taking our total borrowing to —.
- Receiving funding support from (see list below)
It might be worth identifing if your bank can provide further funding or if you have alternative sources of funding.
Identify any fixed cost that had to be covered during closure that were not covered by grant or loan schemes.
2. CUSTOMER DEMAND
Demand from customers is high and we are holding forward bookings from mid-July which are close to pre Covid levels ( If this is the case) and we are confident of successful and sustainable re-opening
3. COMBINED EFFECTS OF FURLOUGH WINDDOWN AND REDUCED FERRRY CAPACITY
It is clear that the Scottish Government sees the Islands exiting lockdown and moving through the phases of the Scottish Government Route Map behind the rest of Scotland and that ferry capacity to the islands is expected to be below 20%.
This level of capacity can only support the local infrastructure and there can be NO TOURISM unless capacity can be increased or social distancing ends or is relaxed.
Both of these present an unprecedented threat, we are unable to restart our business in line with the rest of Scotland. The islands are clearly at a disadvantage to the rest of Scotland and the UK both in terms of restart date and lack of ferry capacity.
- CASH RESERVES-HOW LONG CAN WE LAST WITHOUT CUSTOMERS ?
Take into account: Fixed Cost, Employer contributions to current furlough plans, re opening costs as a Covid secure business, Financing cost , possible redundancy costs.
5. IMMEDIATESHORT-TERM ASSISTANCE
We know our business is sustainable and successful in normal circumstances and we need to keep our team so that we can restart quickly and effectively.
WHAT WE NEED TO SURVIVE
- All Island businesses to reopen in line with Scottish Government Road Map
- Ferry capacities and timetables that will allow passenger capacity to be a minimum 50% of 2019 levels (with full car capacity) from phase 3 of the roadmap. No day visitors to be allowed with capacity reserved for local infrastructure and overnight visitors.
- The furlough Scheme to continue until social distancing measures are no longer required.
- If any of the above cannot be delivered or only partially delivered, we will need government support to cover the fixed costs of the business and to support our employees to avoid administration. Fixed costs are —=and furlough costs approx.—– per month.
- Financial assistance to bring staff out of furlough for Covid-secure training and social distancing preparations and to cover expenses like PPE, screening, systems etc. (Estimated cost is ?)
6. REOPENING SCENARIOS – SHORT FALL IN FUNDING
We have modelled a number of reopening scenarios to identify the current shortfall in funding. Apart from option one they are based on your business retaining its whole team.
- Unable to reopen by 1st August with the Furlough Scheme operating under the current rules, How long can you survive??
- Reopen August 20 with 50% Ferry capacity, no change to furlough scheme shortfall —– Reopen August 20 with 50% Ferry capacity, furlough scheme extended as above shortfall —
- Reopen October 20 with 50% Ferry capacity, no change to furlough scheme shortfall —- 5. Reopen October 20 with 50% Ferry capacity, furlough scheme extended as above shortfall —
- Reopen April 21 with no change to Furlough scheme shortfall —–
7. GOVERNMENT SUPPORT MEASURES BEING USED
- Corona Virus Job Retention Scheme .
- Corona Virus Business Interruption Loan Scheme
- Pivotal Resource Resilience Fund
- Creativity and Tourism Hardship Fund
- Local government grant scheme