The Leicester lockdown. What does it mean for Nottingham businesses?
The continued lockdown in Leicester will have an impact on Nottingham's economy, argues chartered accountant OLIVER LUMB.
Although non-essential businesses are seeing an alleviation of lockdown rules on Saturday 4th July, the relaxations are not going to apply to Leicester, due to a spike in coronavirus cases in the densely populated city centre.
This will leave many businesses no choice but to close again, only weeks after reopening.
Leicester is, only a 40-minute drive away from Nottingham, so what exactly are the implications? Well, there may be a potential increase in the number of Leicester residents coming to Nottingham, both to the city centre and out-of-town retail parks, to take advantage of the non-essential shops and hospitality. And although this may benefit the non-essential economy in the Nottingham area, it also poses an increased risk of the virus being transmitted from Leicester across neighbouring counties.
The threat of COVID means that Nottingham businesses need to pay particular attention to social distancing in public spaces such as pub beer gardens. So if you haven't yet introduced clear distance markings, transparent screens at cashdesks, and facilities for cashless payments, now would be the time to implement these changes to prevent further spread of the virus.
Many businesses in the hospitality industry have started working on a booking-only basis, where people who are hoping to visit will have to call up in advance and book a slot. This is a great way of keeping an eye on capacity and ensuring the safety of your staff and customers, as we can all imagine the mad rush to pubs and restaurants from 4th July.
If your company is affected by the lockdown in Leicester, there is still government help for you.
Should Nottingham businesses prepare for another lockdown?
Although the COVID infection rate nationally has decreased from the peak in April , the surge of cases in Leicester proves that businesses need to be prepared for the possibility of another lockdown in order to survive. If at all possible, non-essential businesses that have recently opened back up should try and save money in order to mitigate the effect of a second lockdown.
Many small businesses found that the delay in monetary support during the first lockdown has put a strain on their finances. Although government funding will be granted to Leicester businesses that have had to close for an additional period, preparing for a second period of reduced revenue is a responsible decision that all non-essential businesses should follow in order to maximise the chances of survival during the time between closing and receiving government support.
Finding other ways to pay the bills
Throughout these troubling times, the traits which many of the businesses which have thrived have in common are that they have been agile and open to adaptation. If a second lockdown comes to Nottingham, local businesses should consider other options available to them to help alleviate the financial burden. For restaurants and hospitality, for instance, this could be by introducing delivery or takeaway options. Alternatively, if you sell directly to businesses, you could look at selling directly to consumers instead or use the time to review your products and services to ensure they fit your customer's needs.
Having an online platform is vital during this time when face to face meetings and interactions have been restricted. If you offer a service with technology such as Skype, Zoom and Microsoft teams you are not limited geographically to whoever is in commuting distance. You can move appointments online and potentially take clients on from across the country. There may also be logistical changes such as setting up a virtual private network for employees to have remote access to the systems they need to work from anywhere, which could reduce the need for a large expensive office. Small changes like this are things that you can make within your business in order to reduce costs and maximise profits without negative impact on customer service or employee welfare.
If you require more information on the ways your business can prepare for a second lockdown, whether it's through new market opportunities, physical resource planning or financial restructuring, please contact a member of the Page Kirk team by calling on 0115 955 5500 or email at enquiries@pagekirk.co.uk.