News | Tuesday, 12th May 2020
Coronavirus: Challenges and opportunities for business life after lockdown
Banking and finance professor joins experts to consider how SMEs can transition as life returns to normal
What will the business world look like after the Coronavirus (COVID-19) outbreak?
Business owners in Greater Manchester joined an expert from Manchester Metropolitan University Business School for a virtual panel discussion in collaboration with Barclays Eagle Labs Manchester, a Manchester city centre space where entrepreneurs can scale and grow their businesses.
Viewers tuned in via video conferencing software Zoom to hear the guests draw on their own insights in managing businesses through the current challenges and share their strategic thinking, prioritisation strategies and offer advice to support others.
We have reproduced the main discussion points tackled by the panel: Mark Jarvis, Visiting Professor in Banking and Finance at Manchester Metropolitan, Helen Fleet, Director at Helen Fleet Financial Strategy and John Quinton-Barber, founder of integrated communications agency Social.
What are the key challenges for the months ahead that businesses should be thinking about?
John Quinton-Barber: One of the challenges we have is the fact that we have a very young workforce and there is a lot of worry about taking public transport. I think there needs to be more re-assurance from the government about the safety aspects of travelling back to work.
Helen Fleet: For me, the biggest challenges will be the cashflow. Nobody knows what the future will hold and for many businesses, even when they can get up and running again, they will not be functioning with a 100% of their usual income.
How will business continue when costs return to normal, but income doesn’t?
Helen Fleet: I think business owners will need to be conscious that many payments that have been deferred – such as rent, VAT, loan repayments – will still need to be paid. Some harsh decisions may need to be made to cut some of the overheads that businesses have been able to operate without during this lockdown period.
Will finance be available in the Autumn to support businesses?
Prof Mark Jarvis: The government is being lobbied about stamp duty, so I think that would be very helpful if a deferral or wavier for a period of time would come into force. Financial support for sectors that have been hit very hard by the current situation, such as hospitality and the airline industry, would be welcome as, up to now, we have not seen any sectorial approaches being taken by the government.
What opportunities does this period yield for businesses?
Helen Fleet: This time gives people the opportunity to look at how they can rebuild their businesses in the most profitable way. It is a chance to look at the services, clients and sectors that they want to serve and that will be most profitable for them in the future.
How can we build in agility to business models?
John Quinton-Barber: I think businesses need to embrace the flexibility to be agile that this situation has brought. People will remember this time and the flexibility that workplaces were able to offer, so businesses need to build this in to their future offering for employees.
Prof Mark Jarvis: One of the big things as the furloughing period comes to and end will be the return of 100% of costs to businesses without 100% of their revenue. Businesses will need to be prepared for this and it is vital to ensure this is addressed in their business models.
The full briefing session can be viewed again here, which includes an introduction and overview from our experts:
The session was the latest in a series of short online briefings, hosted in partnership with Barclays Eagle Labs Manchester, designed to clarify the complex financial options available for businesses navigating these uncertain times.
Details of future sessions will be available soon and if you would like to find out more, contact cpe@mmu.ac.uk.
