Partner, Begbies Traynor
CAROLYNN BEST
Opening the floodgates to distressed business
Managing Director, PPL PRS Ltd
ANDREA GRAY
s the furlough scheme readies to end on October 31 (although, as I write, there are subtle hints of a possible extension) and the Eat Out to Help Out scheme has fulfilled its part by encouraging consumers to fuel the ailing food industry by resuming spending habits, the true level of economic damage is yet to come to light. Once government support ceases, mortgage holidays expire and the freeze on wrongful trading ends, the dam sheltering financially distressed businesses is likely to burst.
Music to bring business back to life
his year has been a very strange one, as we all know. January and February were full of plans for the coming year, but little did we know that the country would go into such an extensive – and for some businesses devastating – lockdown. The world we know now, compared to this time last year, is a very different place. There are no music festivals or stadium tours, no summer fêtes on the beach, public bonfire and Christmas festivities are being cancelled, sports are being played behind closed doors. Thankfully, the Government announced in June that many non-essential businesses could reopen, news which was much welcomed by millions of businessowners and managers around the country. However, in August the Government also declared that the UK was officially in a recession, and it could take until 2022 to recover financially from the Covid-19 pandemic. As businesses across the country open their doors, customers may be anxious about returning to the high street and hospitality. Employees are feeling cautious about the return to their place of work, with new guidelines and processes in place. Music can help with this transition into the new ‘normal’. Many office staff have been working from home for months, and may have been tuning into the radio to keep them company. Research has shown that 1 in 4 people say they listen to the radio stations that they know when feeling isolated – just for the familiarity of the voice they’re listening to. More than a third of people also like to put on the radio as background noise, to use as a coping mechanism when feeling lonely. As these workers return back into the office environment, perhaps music could help them to 18 | NICHE
Recovering income and projecting future losses As Covid-19 shows no sign of diminishing following a raft of enforced curfews across the country and local lockdowns, shopfronts are likely to experience a drastic dip in footfall and custom. Businesses continue to lick their wounds following the disruption in trade as a result of the coronavirus pandemic, which sliced out the core summer trading season. By forecasting profits and seeking the necessary support to keep your business afloat, you can gradually recover from the disruption in trade and protect your business from future turbulence. Spotting early signs of struggle The key to survival is to actively track the financial health of your business and enforce the necessary financial support measures before the condition of your company escalates into a cause for concern. If your business is struggling to repay tax liabilities, a Time to Pay arrangement with HMRC can restructure payments into affordable instalments. If you require a cash injection to cope with consumer demand following the slump in trading, an alternative finance solution may hold the cards to your success. If your business is struggling to stay afloat due to bad debt or a backlog of unpaid invoices, restructuring credit control measures can supercharge payment delivery. The options become less as time passes and the situation deteriorates, which could mean falling foul of director responsibilities.
adjust to a new way of working and being socially distant from their colleagues. Returning to hospitality and retail environments may seem a daunting prospect to customers too. The rules around wearing face masks may cause anxiety, and familiar music in the background could help to relax and calm those visitors to your business, taking their mind off their worries as they hum along to the recognisable tunes. Whilst the world as we now know it may not be the all singing, all dancing version we lived in at the start of this year, we can still use music to help bring business back to life.