10 minute read
BIG ASK
What support is available to dealers as we pull out of lockdown?
After a year and a half of living under restrictions, we are now finally experiencing something like our lives before - but how can dealers seek support in the new normal?
Mike James, MD, Dundale Asssociates
The traditional OP independent stationery and business supplies channel has seen significant changes in recent years; the switch-to-digital, disruptions to the wholesale supply chain, Brexit and, of course, the COVID pandemic have speeded up these changes. The dealer community has seen winners and, unfortunately, losers; however, there is plenty of support - and a desire from many - to see the channel prosper.
Whatever problem a dealer faces it will probably not be unique, and others will be in the same boat, or have faced similar issues in the past. My advice would be to network and talk to others; whilst dealer groups offer regular contact opportunities, there are other organisations that can support the dealer if they are prepared to join and get involved, namely: • BPIF/BOSS (www.bossfederation.com) - they have done a good job over the past year, sharing crucial information.
The Brexit situation potentially becomes even more complex over the next year and you need to be ahead of the game • The Stationers’ Company (www.stationers.org) - both your suppliers and competitors are possibly already members.
The events give you the opportunity to learn from the experts in both the OP and allied trades. The dinners allow you to get to know your suppliers • The Society of Old Friends (thesocietyofoldfriends.co.uk) - purely an OP social organisation, but there have been many times in my career where problems have been solved over a pie and a pint.
Dealers often tell me that they do not have time to get involved in external business activities; however, it’s interesting that most of the successful, growing dealers are members of these organisations, all of which have regional events outside London. It often amazes me that when dealers join a group some never utilise the services. The level of support - including promotions, intros to new suppliers and enhanced data - is growing by the day.
Prima Marketplace is another initiative that provides business supplies resellers with the ability to quickly identify, compare and source a vast array of diverse products from a growing range of suppliers, most with edi capability. In times of uncertainty and change it is essential that they have access to a
varied and extensive selection of enriched product data at the click of a button. By providing your customers with this level of service, Prima Marketplace enables business supplies resellers to compete with Amazon.
When I was sales director at Esselte we offered a range of tools to the dealer to help grow sales and today most suppliers are still very keen to support you - hence the success of Fusion and Prima Market Place.
As a former dealer I have been passionate about the dealer channel for 40 years, and if any dealer needs any clarification on my views, or information on The Stationers Company or The Old Friends, then please email me (mjames@ dundaleassociates.co.uk).
Amy Hutchinson, CEO, BOSS STRONGER TOGETHER – JOIN BOSS
Since the beginning of the COVID-19 pandemic the team at BOSS has been working hard to support the sector. It’s our job as the industry’s trade association to help government and those in authority understand the specific needs our sector has, and the implications of decisions they’re considering.
AMPLIFYING THE INDUSTRY’S VOICE
Through our business impact surveys we’ve been able to amplify the industry’s voice, reporting both anecdotal and statistical feedback throughout the pandemic to the Department for Business, Energy and Industrial Strategy to lobby for core business support to enable access to finance and promote job retention. In addition, we sought to bring recognition to the crucial work the business supplies industry does in supporting critical businesses, such as hospitals, care homes and government, and also its role in ensuring the UK remains productive by delivering essential supplies to homes and businesses.
COST EFFECTIVE BUSINESS SUPPORT
In addition to representation BOSS has been supporting its members with cost-effective, impartial business guidance to help companies navigate through this challenging period and, as the industry emerges from lockdown, this support continues to be available to our members.
Our HR and legal teams have been tirelessly interpreting the schemes released by government and passing this knowledge onto members via our coronavirus hub. Over the last 18 months they have been advising businesses on how to manage a remote workforce, key employment law considerations for the CJRS, and how to ensure employees’ mental health is safeguarded. They’ve provided support for businesses looking to restructure and helped them consider their options, protecting companies from tribunal claims when cash flow is tight. This practical, tailored approach to solving HR problems has allowed members to manage with confidence and be assured they are complying with the law.
Our legal team has been on hand to assist members, providing advice and input both strategic and day-to-day. At gold level companies can call our commercial lawyers for telephone advice when they need a quick check on a legal issue affecting the businesses while, at platinum level, they are also covered for representation should the business be taken to an employment tribunal*.
Our H&S team has been helping members understand exactly the measures they need to take to be COVID-secure. They have created a simple, eight-stage, ‘road map’ to walk companies, step-by-step, through the whole process - including how to assess vulnerable employees, implement social distancing effectively and undertake a risk assessment - ultimately leading to certification as a COVID-secure business.
As Mandy Robson, BOSS’ head of HS&E, explains: “As employees return to the workplace we can help businesses create a compliant and trusted environment. We have a wealth of online templates to support you through health, safety, environmental and human resources, and our experts are just a ‘phone call away at all times to guide you through current legislation, best practice communication, and to certify excellence where demonstrated.”
RECRUIT AND EXPAND YOUR TEAM
The BOSS training team can help members recruit and expand their teams and provide support with apprenticeships in terms
of upskilling existing team members - developing their leadership skills - or recruiting new blood. They provide training and qualifications at all levels so staff can realise their true potential.
Recently they have been enabling resellers to access and benefit from the government’s Kickstart Scheme meaning businesses can get free young talent for six-month placements and a £1,500 grant for training and set-up costs; BOSS training will take care of the administration and application.
CONNECTING YOU
Throughout the pandemic BOSS has held numerous webinars and events to ensure the industry stays connected. In March 2021 BOSS formed a Resellers Forum, United, chaired by Darren Lloyd, with the following objectives: • CONNECT – create a community of passionate contributors enabling resellers to connect and share insights/ideas • VOICE – provide a fair and effective voice, a platform to give feedback from resellers to the wider supply chain • SUPPORT – provide relevant/impartial support and guidance to the reseller community to enable growth and future-proof their businesses • CHAMPION EXCELLENCE – advocate the highest quality and environmental standards, fostering pride in being a
BOSS reseller.
The forum will be hosting their first live event prior to the BOSS Industry Awards on November 25 at the Kimpton Clocktower, Manchester.
So, if your company is looking for support in creating a safe and productive environment for your employees to return to, if you need expert guidance in how you go about restructuring your teams, or would like to join the BOSS Resellers Forum, please don’t hesitate to get in touch to discuss membership. Contact jack@bossfederation.co.uk.
BOSS BUSINESS SUPPLIES CHARITY – HERE TO SUPPORT YOU
Traditionally, the BOSS Business Supplies Charity has existed to support those in the industry that are financially in need due to ill health, disability or other circumstances.
At the start of lockdown, in anticipation of support being needed - potentially quite rapidly - the charity created emergency care packages designed to support individuals in urgent need of financial assistance due to COVID-19. To date the charity has helped numerous individuals with these packages, and continues to offer its support.
Last year the charity launched its Future Fund grants for individuals looking to undertake training to further their careers within our sector. If you know of an industry colleague who needs support please direct them to www.bossfederation.com/bossbusiness-supplies-charity/ or email liz@bossfederation.co.uk *Terms and conditions apply.
CASH FLOW PRESSURES – TAKE EARLY ADVICE We spoke to Graeme Lipman, BTG, regarding cash flow pressures facing companies:
The coronavirus pandemic has caused unprecedented levels of business disruption to companies across the UK; barely any sector has found itself immune to its devastating impact and, even with restrictions on trade now lifted, the ripple effect of COVID-19 is set to be long-lasting.
What we’re seeing at present is the start of a perfect storm, with accrued liabilities all rearing their collective heads at the same time; be it bounce back loan repayments, CBILS repayments, deferred VAT, deferred landlord and rent payments and, soon, the end of the furlough scheme.
All these measures were put in place to act as a crutch for businesses throughout the pandemic and, while COVID is here to stay, we know that government support certainly isn’t.
As welcome as those initiatives were, for many businesses, it’s now a case of factoring in these additional repayments on top of trying to get business going again - which is proving to be challenging. Although many had no choice at the time, loading borrowing onto an already struggling company is often a recipe for disaster. If you are unable to meet the monthly repayments on your bounce back loans - or any other form of finance you took out to get your business through the COVID pandemic - you need to seek expert advice.
Even if you didn’t take on additional borrowing to help survive the crisis, you may still be suffering from the lasting effects. Perhaps sales have never fully bounced back to pre-COVID levels, or maybe your cash flow is still feeling the squeeze after months of limited trade, or maybe the upcoming VAT bill is filling you with dread. Whatever problems you are facing, rest assured you are not alone.
While the COVID pandemic caused unprecedented business disruption, almost overnight, recovery is not going to be as quick; however, there are a number of business rescue and turnaround solutions that could put you on the right track.
We speak to company directors every single day who are still feeling the effects of the pandemic. We take the time to understand your current situation and work alongside you to put a plan in place which will give your company the very best possible chance of turning around its fortunes, and looking ahead to a brighter future.
We’re already seeing some green shoots of recovery since trading restrictions were lifted in April, but we’re also seeing a rise in liquidations too, so directors need to take stock of their financial situation.
Graeme Lipman, director at Begbies Traynor, commented: “While many businesses opened their doors in April, and started getting back on their feet, this led to a decrease in levels of significant distress - but some businesses quickly realised they couldn’t manage the accrued liabilities over the previous 12-15 months. Many SMEs saw arrears building up throughout the pandemic, such as landlord and rent payments, VAT, PAYE and, on top of this, we saw bounce back loan repayments beginning in May.
“You can understand why an increasing number of SMEs were simply unable to cope with the heightened cash flow pressure upon re-opening which has led to a rise in voluntary liquidation processes. So, the overall picture since April is healthier but with the caveat that some businesses, which just about kept their heads above water throughout the pandemic, are now starting to fall away.
“We can provide the early advice you need to help put in place a rescue process that can, hopefully, steer your business away from closure.”
Graeme Lipman is a finance specialist and director at BTG Advisory, with a wealth of experience in business rescue and turnaround.
