Business Finance Designed for You: How Hospitality & Retail SMEs can adapt to COVID restrictions in 2022
Jan 7, 2022 | Ben Davies
"For team sport fixtures, such as community football or rugby matches, the simple rule is no more than 30 people indoors and no more than 50 people outdoors can spectate."
This quote is an extract from the Welsh government guidelines published on 23rd December 2021 to combat the spread of the new COVID variant, Omicron.
When I read the words "simple rule" it brought about a wry smile but probably not one as big as when I read about what Caerphilly Rugby Club had done to adapt to the new rules.
Caerphilly Rugby Club adhered to the 50-person spectator rule outside for its Boxing Day fixture but used its newly installed CCTV equipment to live stream the game inside their clubhouse to an additional crowd of 140. It was reported that these people were, of course, sitting at tables of 6 or less in line with the same government guidelines.
They broke no rules. It was a clever way to adapt but from reading social media this week I share the view of many others; how can you expect business owners to get behind inconsistent policies that allow some sectors to prosper and others to suffer?
What's next for SMEs in Hospitality & Retail?
Thinking laterally is vitally important in any business and whether it should have happened or not, Caerphilly RFC certainly were thinking outside of the box in their approach to a confusing set of guidelines.
For businesses operating in Hospitality and Retail during these uncertain times, lateral thinking can help overcome adversity, but it can also unlock new business potential and create future opportunity.
Businesses have been forced into diversifying and producing new revenue generating ideas - it's the same entrepreneurial spirit that helped you start your business, that will help get you through the next 12-24 months.
Hexa Client Case Study
It would be easy for these businesses to batten down the hatches and cut costs but the amount of new funding requests we have seen at Hexa would suggest the opposite. These aren't simple working capital funding requests, they're often requests to finance new equipment, change the layout of their premises, or expand into new areas.
One of these clients is Ant Cook who runs the popular Parc Pantry coffee shop in Malpas. We're proud to have worked with Ant and his business partner Matt on several projects over the past 12 months.
Here is what Ant had to say about working with Hexa this year:
"We first contacted the team at Hexa while looking at a few different funding mechanisms for some store improvements. Hexa were able to finance invoices from multiple suppliers which provided a solution that enabled us to obtain the equipment we needed.
"Having found the team so effective, we have since approached them for a larger sum to fund a new project, allowing further growth in our market sector again whilst retaining our cash flow. These two key areas of investment have enabled us to work more efficiently, in terms of practically and financially. We'll soon be looking to use the services of Hexa Finance again as we look to progress with a new project for 2022."
6 Funding Tips For SMEs
Work out exactly how much you need - and make sure you have the cash flow forecasts to back this up. Taking on too much, or too little, can be equally detrimental in helping you achieve your objectives.
Review your current cost base - and see if tightening up in certain areas could allow you to flourish in others. This might include looking at your previous borrowing and whether this could be consolidated.
Make sure you are accessing the right type of finance - this is where a relationship with a trusted finance partner is vitally important.
Remember that borrowing is not just about survival - it's also about growth. Using funding in the correct way can really drive your business forward.
Research - knowledge is power. Make sure you fully understand the type of borrowing you are committing to.
Be confident that YOU are the experts in your chosen market - the most important thing is that you believe in your ideas and why you're committing to them. Being both considered and assured will support your finance application.
On behalf of the team at Hexa we would like to wish Parc Pantry and the rest of the hospitality and retail sector a very Happy New Year!
If you'd like to know more about how Hexa can help your business have a successful 2022, get in touch.