Originally written by Stuart Crook on Small Business
July 4 marked the most recent phase of coronavirus restrictions easing in the UK, which allowed for pubs, restaurants, and private events to return to trade post-lockdown. Engineering, construction, and non-essential retail had already re-opened, however many are discovering that it isn’t simply a case of “business as usual”.
The Government has offered many different forms of financial aid during the pandemic to help businesses weather the economic freeze, including the Coronavirus Job Retention Scheme (CJRS), Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loans (BBL), which have all been greatly received. However, even with businesses opening their doors to the public again, there are new rules and restrictions in place which must be followed which will impact on the bottom line of businesses and squeeze margins.
So, the challenge now isn’t so much restarting operations, but finding a way to do so profitably.
>See also: A quarter of entrepreneurs don’t use social media for their small business
Demand for sales
The Government was praised for its £330bn war chest at the beginning of lockdown to help businesses survive and protect the nation from mass unemployment. The idea was that it would protect the economy and ensure
Tag Archive for Retail
Hot Business News Today
Government looking at bringing in part-time furlough immediately
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government is listening to retailers about being allowed to bring back furloughed staff on a part-time basis, according to one senior source.
Although independent retailers are being asked to reopen from June, the Coronavirus Job Retention Scheme will only allow part-time furlough from August.
Given a cratered economy and uncertain demand, retailers are asking why the government insists on this all-or-nothing approach.
Some shops are gingerly reopening towards the end of the working week but would have to pay staff taken off furlough fully time.
“Part-time furlough has been raised by retailers and a number of MPs. It’s something that we’re looking at and try to respond to,” said the source.
“By extending the furlough scheme in the first place, and then extending it a second time, it shows that we’re listening. We do listen and hope we’re being seen to be flexible and responsive.
“Businesses are burning though cash with no changed in fixed costs. We are never going to have had perfection implementing schemes at such speed and scale.”
Self-employed owner-directors
Meanwhile, the government is still thinking about how to open up the Self-Employed Income Support Scheme (SEISS) to self-employed owner directors.
The problem, said the source, is that
Hot Business News Today
Only allowing part-time furlough work from August doesn’t make sense
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Shop owners are questioning why the government is only okaying furlough staff to work part-time from August, despite encouraging them to re-open next month.
Small retail businesses face a disastrous couple of months before furloughed staff are allowed to come back part-time, with office workers staying away and restaurants and bars closed.
Kate Evans owns independent fashion boutique Precious, which is based in the City of London and whose customers include City workers now working from home.
Evans said: “With offices and restaurants closed, we don’t know how much demand there will be when we reopen next month. The government says it wants independent retailers like us to reopen. Yet we can’t take back furloughed staff to work part-time during these crucial next couple of months. This all-or-nothing approach doesn’t make sense. The furlough scheme needs to be more flexible to support reopening.”
>See also: Rishi Sunak extends job retention furlough scheme to October
Many independent retailers are planning to reopen on a part-time basis initially.
Lobbyists say that the Treasury to open up the furlough scheme now to allow part-time work in retail, what with demand so weak. By August, many are afraid there will be no shops
Hot Business News Today
Where to find your small business coronavirus grant
by Small Business Team • • 0 Comments
Originally written by Small Business Team on Small Business
Responding to the coronavirus (Covid-19) pandemic, the government announced there would be support for small businesses and businesses in the retail, hospitality and leisure sectors. This small business coronavirus grant will take the form of two funding schemes:
The Small Business Grant Fund – a one-off grant of £10,000 for eligible businesses to help meet their ongoing business costs
Retail, Hospitality and Leisure Grant – a cash grant of up to £25,000 per property if you are eligible (businesses with a property that has a rateable value of over £15,000 and less than £51,000)
So far, about 50 per cent of businesses eligible for the coronavirus small business grant have received their cash but some councils have only distributed a tenth of the money due to small businesses, according to the business ministry.
See also: How to get the government’s £10,000 cash grant for small businesses
As of April 20, £6.11bn has been paid out to 491,725 business properties in England.
Because grants are allocated per business property, a single business can receive multiple grants and may receive grants from separate local authorities.
English Local Councils Coronavirus Grants
Local Authority Initial Allocation (£)No. of eligible small businesses as of April
Hot Business News Today
All non-food retail to shutdown apart from chemists – Boris Johnson
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Boris Johnson has announced a shutdown of all retail apart from food shops and chemists this evening.
The retail shutdown affects tens of thousands of retail businesses across Britain in a bid to stop the rampaging spread of coronavirus.
From now on people will only be allowed to leave their home for shopping for necessities, said Johnson, singling out clothes shops and electrical retailers as non-essential retailers.
The prime minister added that the public will be allowed out for exercise once a day and that police will have the power to intervene where necessary.
Boris Johnson said: “From this evening you must stay at home … at present there are no easy options … in this fight, we can be in no doubt that every one of us is enlisted … the people of this country will rise the challenge”.
>See also: What does the latest Treasury stimulus mean for small business?
Government moves to stop businesses being evicted
The government has stepped in to stop businesses being evicted for non-payment of rent, giving small businesses a three-month lease forfeiture moratorium.
This means that if businesses are unable to pay commercial rent due to the coronavirus shutdown, they will have a
Hot Business News Today
Hike corporation tax to cut business rates, urge retail bosses
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Retail bosses will call for the Treasury to increase corporation tax in order to cut business rates by £6bn.
A sub-committee of the Retail Sector Council is reportedly calling for the Treasury to raise corporation tax by 2 per cent to 23 per cent to raise around £6bn a year by 2022/23. Other proposals cover VAT reform and tax and property cost transparency.
The group will make the recommendations in a document to be shared across Whitehall in the coming weeks, Sky News has reported.
According to Sky News, the extra revenue would be used to reduce the business rate multiplier to around 40p in the pound.
Corporation tax is currently 19 per cent for UK companies. During the election, Labour proposed increasing the rate to 26 per cent (with a lower 21 per cent rate for businesses with annual turnover of under £300,000).
High street decline
The Retail Sector Council was set up in 2018 to help address the decline of the UK high street and increase the productivity of the retail sector.
It is currently co-chaired by small business minister Kelly Tolhurst and former Co-op chief executive Richard Pennycook, who is also the chair of department store chain
Hot Business News Today
The Decade of 'Millennials Killing' Things Has Come to an End, But It Wasn't Their Fault in the First Place
by Kate Taylor • • 0 Comments
Millennials have been blamed for killing everything from beer to napkins over the past decade.
Hot Business News Today
How to become a retail business owner in 2020
by Jo Thornley • • 0 Comments
Originally written by Jo Thornley on Small Business
With a significant number of retail outlets failing miserably in their first year, many entrepreneurs prefer buying an established business. While acquiring a retail store seems like a walk in the park, the reality is that it can also fail and you can still lose your investment.
However, with adequate preparation and smart planning, you will be on your way to becoming a successful retail business owner.
Are you thinking of buying a retail business? Here are a few things you should nail down for your business to take off as expected in the new year.
Have a solid business plan
When buying a business, your goal is to run the store well, earn profits and grow. Achieving your objectives will depend on how organised you are. For instance, you cannot think about growth if you do not have a business strategy in place. How do you ensure your business is always on the right path to success?
Retail companies are complicated since they experience peaks and troughs. Creating a business plan for your retail store will ensure you take advantage of the opportunities and mitigate the weaknesses of the business.
Your business plan should include your pricing strategies
Hot Business News Today
Shoppers to spend £4.4bn with small retailers this Christmas
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small retailers and independent businesses are set for a very SME-rry Christmas this year.
This Christmas UK shoppers will spend £4.4bn with small retailers, with £140.4m being spent every day in December.
People plan to buy nearly one fifth of their gifts from independent businesses, each spending £87.51 on average, according to research.
>See also: Delivery tips: The 12 do’s of Christmas logistics
The Direct Line for Business survey found that supporting local businesses is extremely important to 93 per cent of people across the country and that independent shops ensure communities have a distinct local character (91 per cent).
Nearly nine out of 10 people think that without supporting local retailers, British high streets will be hollowed out with “clone” multiple retailers, and that high streets will die out unless small businesses are supported (85 per cent).
Hearteningly, 76 per cent of shoppers think that the service in independent retailers is better, while three fifths (60 per cent) believe the quality of goods from indie shops is higher than major chains.
Age breakdown of Christmas shopping among small businesses
Age groupAverage proportion of gifts expected to be bought from small, independent retailers this ChristmasAverage spend at small, independent retailersEstimated total
Hot Business News Today
Viral Video Guru on the Evolution of Retail From Brick-and-Mortar to Social Media
by Alex Ragir • • 0 Comments
Entrepreneur Network partner Alex Ragir talks about building a digital media company with the founder and CEO of Jungle Creations.