Is my business essential? Should I have stopped trading?

This is not as tough a question as it may first appear. However, there is some understandable confusion which we need to eliminate.

Your business should try and adjust to carry on if:

1. You can operate safely.
2. Your business remains viable.

Clarifying the confusion of the words ‘essential’ & ‘necessary’

A consistent point that has seemingly caused confusion circles around the words ‘essential’ and ‘necessary’.

The Prime Minister’s speech on 23rd March 2020 told everyone in the UK that they “must stay at home”, except for four limited reasons. The fourth reason was travelling to and from work.

The government has NOT instructed the UK to stop working!

That same point continued to clarify that this is “only where this is absolutely necessary and can not be done from home”.

Unfortunately, the use of the words ‘absolutely necessary’ have then been repeated out of context. As a result they’ve been incorrectly interpreted by some, as ‘people can only work if absolutely necessary’ or if delivering ‘essential services’.

Following the speech, many staff and employers decided their business would not be viewed as delivering essential services to key workers, and decided they needed to close, or suspend trading.

Decisions made on misinformation are incorrect. They will cost the economy in the long term, hurting staff and businesses. In the short term they have already led to avoidable redundancies and cutbacks.

So to clarify the confusion over the words “essential” and “necessary”…

If a role can not be completed from home, then it is absolutely necessary to travel to work!

Clarifying the specific businesses identified to close

If your business type was specifically identified in the speech, or subsequent notices, because for example, it sells what is viewed to be non-essential goods, operates a library, a place of worship, a gym… then you do not need to close your business as a whole. As long as you can restructure it to comply with the new instructions.

The principle point of the changes imposed on us is to limit the spread of the disease. Unfortunately venues such as shops and organisations where people come into close contact increase the spread of it.

Before suspending trading there is a moral obligation. And in many cases, contractual responsibilities on business leaders requiring them to try and find a way to operate in a new way. A way that will not spread the disease.

For most shops, this means closing their doors to the public, but continuing (or starting) to operate online. In fact, potentially growing that part of the business at a time where the public need online suppliers more than ever before.

For places of worship or gyms, that may mean that they operate via social media or video.

We need to comply with the instructions and guidance issued by the government. You ALSO need to consider if and how to keep your business going.

Will my business survive Coronavirus?

Understandably, most business owners have asked themselves this question. Crossing your fingers & hoping for the best is not a sound business strategy. Read our advice, & learn what the most succesfull business leaders are doing. learn more

Why should you stop trading?

Business leaders that do not put in the effort required to adapt their business are letting down their staff, their customers, and the country, as they move from contributing to the economy, to becoming a burden on it.

So work travel, and even your industry, are not reasons to give in. So why should you stop trading?

Safety is the most important reason to stop some, or all, of your business activities. To operate your business, you need to protect the well-being of your staff, and everyone they come into contact with. In this case, this duty of care means you need to establish if staff can travel to and from work, and can complete their work maintaining, for example, a safe distance from all other people.

If you can not make changes to protect staff, then you first need to discuss redeploying these workers to other safe functions in the business. Or as a last resort, they may not be able to work.

In most working environments it is also appropriate to take reasonable steps to ensure working areas, and items your staff touch, are free from the virus before and after contact.

There is a risk someone may be infected by the virus sitting on a surface of items passed from one person to another. (In or out of your business).

Reasonable steps may include enforcing hand washing, modifying processes for maintaining distance and good hygiene, cleaning items before and after contact, providing appropriate PPE.

For some businesses several simple changes can be made. For others, if it is impossible, then stopping work in parts of the business may be the only solution.

Considering Safety

When considering safety you need to also review all current systems, as changes may impact otherwise normally safe areas. Ensure staff do not feel duty-bound to do anything they are not competent to do, or that other safety measures are reliant on.

You may be faced with a reduced workforce and new risks from anxious or distracted staff. All your normal safety needs to be re-considered.

As distancing and good hygiene are so central to containing the virus, and many businesses are already failing to enforce controls such as the 2-metre guidance, the government may step in and stop other types of work. Government stopping more types of work will cause further damage to the economy, so business leaders should be managing, and enforcing safety, as a matter of urgency.

There is help available for all safety considerations if you choose to use it.

The bottom line for all business leaders is to keep everyone safe

The bottom line for all business leaders is to keep everyone safe, so the activities you allow to happen in your business do not spread the virus. Review safety, get external help if required, and immediately make changes to carry on safely.

Many functions of your business may be able to continue, especially if they are roles that can be completed at home. Many staff can be redeployed to other roles or interim safe work. If you can not make the required changes, you need to consider what happens to the specific staff affected and how that impacts on the viability of your ongoing business.

The second reason to stop trading is business viability

The second reason given above to stop trading is business viability. Business leaders have a duty to try and find ways to safely and legally keep your business trading, making adjustments where possible to continue to provide products or solutions now wanted / needed by your clients.

However, you also need to ensure the company remains financially viable with any changes you apply.

If the current products or services can not be provided because there are problems with your supply chain, or customers have stopped all activity, you need to establish if your team and business can adapt to address one of the areas that need additional product or services.

Business leaders need to ensure the fundamental of sales revenue, minus total operating costs, still results in a viable business…

even if this business is very different from the one you planned at the start of the year!

Increased operating costs from activity such as applying additional safety measures, managing around staff absences, increased material costs, mobilisation of new products or services, reduced efficiency, may all be significant.

A fundamental check may demonstrate that a previously profitable company will now operate at a loss with these temporary measures in place. So the business leader will need to establish if they have access to adequate cash to survive this loss-making period, and forecast how the company recovers.

Juggling the immediate challenges caused by coronavirus is leaving many business owners, & senior leaders, stretched. What is increasingly apparent, due to misinformation & vague guidelines, a number of businesses are making mistakes. Mistakes that could have a detrimental impact.

Do you need leadership support? Free coronavirus support is available from professional business consultants. Contact us to find out more.

It may also reveal that with some changes, such as providing alternative products or services, the period of loss can be reduced or indeed eliminated.

Keeping businesses going is essential

The government recognise that keeping businesses going is essential, and has released a series of measures to support businesses and their staff.

All business leaders need to familiarise themselves with these as some measures may apply and could provide the cash and support required to keep the company trading. Protecting jobs and the economy.

There is, without doubt, some complicated and perhaps overwhelming changes needed for every business, but we have a duty to make this work.

Help is available to review every part of your business and to help you successfully navigate the days weeks and months ahead.

The speed of, and impact caused by, the coronavirus outbreak caught us all unaware. As a result forcing all business leaders to make rapid decisions. Combine this with misinformation and vague guidelines has led to lots of organisations making potentially damaging choices.

If you’d like support, find out more about our partnership with professional business consultants. They’re helping businesses like yours, through their free coronavirus business support sessions. Better still we’re not charging any introduction fees.

To discuss your specific business needs, and find out how our network and resource solutions can help you achieve your business goals, get in touch