Richard Beese of Flip Out offers five tips on how businesses can thrive during difficult periods.
Regardless of Coronavirus, and the dire effect it is having on some businesses, it is still possible to prosper during a pandemic. We, at Flip Out, have focussed our minds on staying positive, and have not allowed too many negative thoughts to enter our heads. While trading conditions remain tough, our moto will be: ‘Out of adversity comes opportunity.’
It is a sentiment echoed at all of our board meetings. We believe that if you have either a scalable idea, or a well thought out business format, both of which are likely to prosper during good times, then why can’t you achieve your goal in more uncertain periods – such as now?
Of course it can be done. Business leaders at Flip Out fully believe we have entered a truly exciting time, so make the most of it. Here are five viewpoints to help you on your way through the Covid-19 pandemic:
1 – Abundance of potential franchisees
Covid has changed most industries forever, and will affect the way we all work. Lockdown has given rise to career changes for so many people. This has led to an increase in the number of people taking an interest in franchising.
Reports are telling us that a large number of folk are sitting on cash from redundancy packages, while others have boosted their savings through furlough schemes. This means there has never been a better time to be in the market for prospective franchisees. They are out there, so find them and attract them to your business.
2 – Exceptional Property Deals
If your business requires premises to operate, then prepare yourself for a good deal. For the first time in many decades it is very much a tenant’s market. In some areas, you could even say landlords need us more than we need them. So go and test the market. Pension funds and landlords have cash to invest in property and are always willing to do a deal.
To mitigate risk on taking a lease in this tough financial climate, make certain your lawyer adds a Covid-related clause to your agreement, because the potential of another lockdown is all too real. Such a clause will protect you, should any Government intervention prevents you from trading for any length of time.
3 – Take advantage of available talent
Finding the right calibre of candidate can be challenging, while hiring talented personnel is often costly. But it’s usually worth the money when they perform.
The pandemic has flipped that on its head. It has uncovered a whole treasure trove of exceptional people who shouldn’t be available to hire – but are. With many losing their jobs during the past year, they are now willing to take a drop in salary in their search for new employment. Remember, most companies are not hiring right now.
4 – Make savings across the company
This is a good time to make strategic savings across your company. When times are strong, there is an abundance of available money to invest in areas that aren’t necessarily core to your business. But when situations arise, which are out of our control and trade drops off a cliff, every pound or dollar must be scrutinised and accounted for.
Start by looking at all non-essential costs, which can either be scrapped completely or temporarily frozen. Check every supplier’s contract, and all service provider agreements. Can any of these be renegotiated or brought to a close? Be firm and calculated in your approach. Some suppliers and contractors will become more flexible if pressure is applied. Never hide your head in the sand. You need to communicate, which will illustrate to suppliers that you are dealing with issues. Hopefully, they’ll offer you a satisfactory compromise.
Study insurance contracts. In most cases, the majority of companies in the UK were not covered by business interruption. Neither did they have insurance specifically related to a virus. However, your insurance may work in other directions which you are unsure about. So always talk to your broker who may be able to arrange a lowering of fees for a short period of time. This may apply if your insurance covers injuries suffered in a gym or at a trampoline park – which are obviously shut during lockdown, thus preventing you from trading. If you are owed money from any debtors, now is the time to call them in. But remember to work with them for the common goal of successfully coming out of this together.
5 – Keep an eye on your competition
Companies are going into administration at an alarming rate. Sadly, it is our view that this is just the tip of a rather large iceberg. Many businesses, and even entire industries, have been badly damaged. There may be opportunities to acquire parts or all of a faltering business, and at a favourable price. Or take the bits you need when administration hits. While many businesses are suffering, others will view this moment as being ‘opportunistic’. It’s dog-eat-dog right now, so make sure you’re the last one standing. Be extremely savvy and don’t be scared to be ruthless.
We, at Flip Out, have reviewed and re-shaped our business. We have some fantastic opportunities that we are sharing with our new franchisees, helping them to build a better future for themselves. And best of luck to you too.
This article comes courtesy of Flip Out the home of trampoline, adventure & inflatable parks.
