Covid-19: Achieving Success in these Challenging Times
We had recently been exploring start-up success and what makes the difference between those that are and those that are not; the Covid-19 pandemic and, particularly, the impact this is having on SME businesses has brought this question into even sharper focus, as business owners are faced with having to make very rapid decisions about the future.
So what issues and challenges are businesses facing?
A recent caller to James O’Brien’s show on LBC radio demonstrated how real this is; with the caller, who was a publican, explaining that he faced a choice of trying to borrow to pay the rent on his closed premises with no clear indication (understandably so) when he might be able to re-open and start generating revenue again.
For many, liquidity is the pressing issue with work being put off and contracts cancelled. There is the option to furlough employees but this, although helpful, doesn’t address a company’s other overhead costs and, indeed, furloughing staff might hinder a firm’s ability to keep on producing whatever they happen to sell.
A company’s ability and desire to adapt has never been more in focus as it is now; for some, it will be now or never. An owner’s failure to adapt to changing conditions has seen many well-known names caught off-guard – an early example of this in recent decades being video-rental chain, Blockbuster Video; at one time a major presence across the UK with stores in every major town up and down the country. But the move in consumer demand to on-demand services, including the likes of Netflix, rendered its business model extinct, almost overnight.
The current Covid-19 pandemic will force further change, as firms best-placed to adapt and embrace new and novel ways to engage with their customers and clients, and deliver what they offer in a more accessible way, will no doubt rapidly do so, where others might be left behind, or at least will not be quite so front-of-mind where businesses and consumers are choosing who they might want to buy from or work with, in the future.
As business owners and entrepreneurs consider how they might best set their firms on the right path, benefitting where they can with relevant financial support, we will be considering in the next blog what firms might choose to do, both in terms of their own internal set-up and how they might be best placed to meet the ongoing needs of their customers and business connections.
If we can help, do contact our corporate team; you might also wish to consider your position if you are a director: https://solicitorstitle.co.uk/covid-19-directors-and-insolvent-trading; and for a more general overview of business issues arising from coronavirus: https://solicitorstitle.co.uk/case-studies/a-business-perspective-in-light-of-coronavirus-covid-19