Business considerations you need to make – despite closure due to coronavirus

For business owners, much of this week may have involved considerable time spent on hold on the phone. On hold to the landlord, local authorities, energy and water companies, business advisors, accountants and insurance companies, to name just a few.

I took the decision on the first government recommendation on social distancing to close my academy doors and temporarily cease face-to-face education. Even with the doors closed, the running of a business does not stop.

While much time has been allocated to trying to manage the financial implications to my business as well as home schooling, organising the household finances, keeping on top of the usual household jobs, continuing to market my business, manage cash flow and making the most of last week’s sunshine with some gardening, I have also started creating online courses.

I have been able to organise payment holidays with energy and water companies. Due to the property not being in use, this should not result in the business getting behind in payments once normal trading resumes.

One of the biggest concerns for businesses and one of the biggest battles I have experienced this week is the failure to pay and compliance of insurance companies during this crisis. Mine, along with many other well-known insurance companies used in our industry have stated that they will not pay out on a business interruption claim. If your policy includes business interruption due to government ordered closure or Pandemic and/or notifiable illnesses cover, the government have mandated that insurance companies must obey and pay out on a claim. This is something I have been disputing with my insurance company this week. If insurance companies fail to comply with government orders, then it will be necessary to take this to the financial ombudsman.

My landlord has been accommodating and offered guidance where possible. I contacted him immediately when I closed the academy to discuss various possibilities regarding payments. He appreciated the honesty in that I cannot predict how long I would be able to keep up with rent payments due to uncertainties regarding business closures and no business income.

With the help of government cash grant schemes, this should alleviate the issue for small businesses and help maintain running costs while not trading.

While the government has put in place measures to ensure commercial tenants will not be in breach of their lease due to non-payment of rent due to coronavirus, it is important to understand that landlords, like us, are businesses too. They also have overheads and outgoings, which this rent contributes to. If these are missed in the current crisis, remember that this will still be payable when business returns to normal so keeping up with rent payments is recommended. I urge you to contact your landlord as soon as possible to discuss your options with them.

Giving back to the NHS

The NHS and medical professionals are in desperate need of our industries help with regards to personal protective equipment (PPE). Techs and therapists use PPE in their trades such as nitrile gloves, goggles, aprons and surgical masks. Due to business closures, these are no longer required by techs for the foreseeable future.

I have created a scheme to collect this PPE for the NHS and medical professionals who cannot get supplies.

I have been in contact with several medical professionals and hospital trusts to get collections together. Hospitals are currently overloaded and do not need unnecessary visitors for one off drop offs of this, so I am collating collections and have organised contact free distribution to those who are in need. I have used the power of social media and contacted all nail and beauty wholesalers to encourage them to get involved with this scheme.

Information regarding the government cash grant payment schemes is changing daily. As I write this, I have logged onto my local authority website and a form has now appeared to complete to apply for the cash grant. This took less than five minutes and included:

• Account reference number
• Bank account details
• VAT registration
• Company Registration Number (if applicable)
• Address and contact details
• Date of Birth
• Declaration that I had not received more than £800,000 in state benefits.

It has been advised that all businesses that benefit from small business rate relief should automatically receive a letter to the bill paying property. This is not something I have received at the time of writing this blog. Each authority has different procedures and timescales so it is important to query these regularly.

Keeping morale in the industry high is critical so I have spent some considerable time designing free step-by-steps and downloadable business materials to educate businesses and clients including how to remove gel polish and enhancements video tutorials and posters, the importance of correct removal and marketing material of their temporary business closure announcements.

It is essential for our industry to stick together and help each other where necessary. This does not just involve free material. To keep the industry alive, we have to consider the whole chain of businesses and support the whole of it.

While the majority in the industries bank balances have been affected, a little from everyone goes a long way to keeping to the whole industry supported. This includes your education providers; your suppliers and wholesalers, and in turn, their manufacturers.

There is so much conflicting and confusing information out there and with the power of social media this can spread like wildfire. This can lead to unnecessary anxiety and concern and it can hard to know where to turn and what to believe. It is essential to only reply on official sources when researching and following this guidance:

• Government and Public Health England
• The NHS
• WHO
• Your local authority
• BBC

Stay safe and continue following government guidance.

Love Katie B x

www.katiebarnesacademy.com