Coronavirus: Can your business stay open?

The coronavirus crisis has spread confusion as well as a justifiable fear.

 Businesses have been forced to close, lockdowns are in place, and we are living under strict rules. But across the UK some businesses are shutting down because they believe they are required to - when in fact they can stay open for business, as long as they observe the social distancing rules. Even  some local authorities seem to be confused by the emergency legislation.

 

With the exception of some non-essential shops and public venues,  where the public would tend to congregate and so expose themselves to the potential for infection, the government has not asked any other businesses to close, and in fact wants to make it possible for business to carry on during the crisis.

In most cases - you can keep your business open.

 

Business that do need to close include:

Restaurants and pubs - but food delivery and takeaway services can remain operational including workplace canteens at workplaces hospitals, care homes or schools can stay open.

You may be able to offer a new takeaway service if your pub or restaurant has not done so before.

Retailers selling ‘non-essentials’ – but  supermarkets and other food shops, health shops, pharmacies including non-dispensing pharmacies, petrol stations, bicycle shops, home and hardware shops, laundrettes and dry cleaners, garages, car rentals,  and pet shops can all stay open as they are considered essential.

 

Cornershops, newsagents, post offices, and banks are also allowed to open.

 

This could provide a lifeline if you run a small store, and carry some food items – despite what you may have heard, if your shop is allowed to open you are allowed to sell any stock you carry.

 

The guiding principle is that if you deal with the public face to face, you need to be careful and observe social distancing rules – but if you provide an essential service, you can keep open.

Of course, some retailers have shut to protect their staff - you will need to understand the rules and make a decision based on your - and your staff’s - welfare.

 Entertainment providers - enclosed venues such as cinemas and theatres or concert halls are closed to prevent contagion - but it may be possible to provide performances to be broadcast by the web or other means.

Sporting facilities - from football stadium to gyms, facilities need to be closed - although it might be possible to provide open air exercise facilities.

Other businesses, from manufacturers  and builders to financial consultants  and lawyers can  simply continue to work, and employees may travel to their usual place of work. However, the government suggests that you should encourage your employees to work from home unless it is impossible for them to do so.

Sometimes this will not be possible, as not everyone can work from home. Certain jobs require people to travel to their place of work – for instance if they operate machinery, work in construction or manufacturing, or are delivering front line services.

What about manufacturers?

If you run a production or warehouse operation, there is nothing to stop you staying in business. Of course, many retailers are shut, which means that many orders will be cancelled.

Many well-known reailers on the high street have said they do not want to acquire new stock to keep control of costs. The most exposed sectors are clothing manufacturers. With most people staying at home, there is demand for fashion as well as less opportunity to buy it. Fashion sales this year are  expected to be down by £11bn – equal to a fifth of UK fashion spend – compared with 2019.

Some retailers have closed their websites as well as shops because people who are not going out are not buying clothes in person or online.

Many production lines have been halted because of a lack of orders - while others have been forced to stop because of the difficulty of bringing in components from abroad.

But there are things you can do to stay busy - and keep your business open.

Keeping trading during the crisis shutdown has two benefits. It can help bring in an income, even if it is much smaller than your usual level of trade - and it can ensure that your customers will not need to go elsewhere.If you are a retailer, it could be time to get online for the first time - or to put more resources into your online operation.

Many well-known chains - such as B&Q - have switched to online services which allow customers to order online - and either collect from the store, or receive a delivery. 

If you are a manufacturer, you may need to switch the lines that you produce to something which will be in demand.

This could be crucial to the long term survival of your business. As we come out of the lockdown, trading may be difficult at first.

Getting the right financial support may be essential.

Various grants and loan schemes are available from the government, but it could be time to look at your existing arrangements, and make sure that they really are the best for your business. 

Cutting a few points off an existing finance deal could cut your monthly repayments, saving you money each month and easing any cashflow worries you have brewing. 

At Rangewell, we are expert in all types of business finance, and we can help you find the funding that's best for you - whether you're looking for help with a government scheme, new lending - or ways to cut the costs of lending you already have arranged. During the current crisis we can provide the quickest way to find the funding you need.

Call us now – our experts are ready to help you with your finance problems during the coronavirus crisis.

We understand the pressures you are under – and our service is absolutely free.