‘Will organisations spend to grow or slash costs to survive?’
Infoboss Limited is an automated data management software and services company based in the Midlands, falling under the accepted definition of a small medium enterprise (SME) business in terms of turnover and staff.
Regarding its current situation, MD Mark Hobart said: “We are a start-up that predominantly operates from a virtual office. The only difference to our trading has been less time visiting clients, instead replacing with video conference meetings. All of our staff are off payroll, so there was no need to furlough.”
Financially, help has been hard to come by. “We tried contacting our bank, Lloyds, but couldn’t get through. We have been offered overdraft and more lenient loan terms from Santander,” said Hobart.
The firm applied for a loans through the Coronavirus Business Interruption Loan Scheme, but did not progress the application because it required some form of director personal guarantee.
Regarding lockdown, Hobart said: “Lockdown has had little impact on us as we trade virtually anyway. It has affected our customers though and many have deferred decisions until lockdown ends.”
The pandemic will also change the way the infoboss limited operates going forward. “We were considering becoming more traditional and investing in an office. However, we now believe that the new modus operandi will mean that we don’t need to consider that, as being virtual is a good thing and keeps our operating costs lower,” he said.
Longer term, he thinks it is hard to say how the company and the sector will change. “It depends on the business climate post lockdown. Will organisations spend to grow or slash costs to survive?”