Diversification key to post-pandemic recovery

Experts at Vibrant Accountancy are predicting a positive outcome for UK businesses post-pandemic – if they can continue to show diversity.

On April 12, non-essential retail, gyms, hairdressers, spas, theme parks and zoos were all allowed to reopen, while restaurants and pubs were permitted to serve outdoors.

Beverley Wakefield, from Duffield Road-based Vibrant, believes if these businesses, which have adapted constantly throughout the last 12 months, can continue to offer new things, then they will blossom.

And Beverley, who set up the firm with business partner Ian Ball just four months before the first coronavirus lockdown, says that those start-ups created during the pandemic can now push on and grow.

She said: “I’m very stoic and think that we can all take this opportunity and challenge post-Covid times.

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“We all need to continue to support local and build on our community – but not close the door to global, as there are, of course, more opportunities out there.

“With technology being so advanced these days, something which we’ve all adapted to using on a regular basis over lockdown, it’s so easy to create new relationships with people around the world.

“There have been some great examples, too, of businesses altering and doing things that their customers want – some online experiences supported by physical presence, a mix of services and new products.

“Let’s continue to challenge and change and keep that human approach which has been so warming to see during the pandemic.”

Meanwhile, Beverley is urging business owners to budget and plan, both personally and for their business, in order to negotiate the recession successfully.

She said: “They need to review all their costs and identify whether they are needed or not and whether they’re getting the right return on investment.

“It is vital to ensure that a business has different saving pots, so that they can make key decisions as to whether investment in staff and kit is possible and making more informed decisions.

“Know the ‘pinch points’, when you need funding and when you need to drive more revenue to create yourself new sales targets.

“I cannot stress how fundamental it is to get it all plotted out. The grants that have been received as a lifeline are also taxable, so remember to plot in when your corporation tax will be payable. Also factor in when you need to pay your ongoing VAT, plus anything else that you have deferred to pay at a later date.

“Businesses don’t tend to fail on the way into a recession; they fail on the way out and there has been a lot of support out there to nurture and ensure that businesses can remain open.”