The words "Covid-19", "business" and "impact" have been strung together in the same sentence frequently in recent months. When sharing his own experience of the Covid-19 pandemic and how he has seen the crisis affect businesses, Paul Newsham, managing director of RFM Accountants + more, identified three defined stages in how firms respond to said impact.
Focusing specifically in this instance on the first, Newsham highlighted that many businesses become stuck in “panic mode”, with executives and directors taken in by “panic and inertia” and overwhelmed by questions including “what if my clients cannot pay me?” or “what if my supply chain is disrupted?” or even “what if my clients stop buying from me?”. Newsham warned that if directors allow the enormity of a crisis situation to affect them, then negative outcomes are sure to follow, so the early stages of a crisis is a time to act and seek out support where needed.
Hayley Limpkin, the founder and co-owner of Razzamataz Medway, a theatre school in Kent, was one such business leader who found herself having to snap out of the initial shock of the Covid-19 situation and take action to ensure the longevity of her business. For her, the key element to her response to the pandemic was taking the time to take stock and get over the shock, before taking the measured action required.
Speaking to the Leaders Council of Great Britain & Northern Ireland about her own trials and tribulations brought about by the pandemic, Limpkin said: “When the lockdown meant we had to temporarily cease trading as we were, we took a moment to reflect on the challenge ahead. I will admit, coming to a decision on the right course of action was difficult when we were sat and watching our competitors moving forward, going online and expanding their offering. Having to be innovative is not a simple task.
“The most important thing we did was simply take stock, step back and get over the initial shock. After that, we were able to make more clear and measured decisions.”
Indeed, taking the time to reflect prior to taking action yielded the positive short-term outcome that Limpkin was hoping for.
“Within a few weeks we had managed to reshape the business and took our offering online which allowed us to offer performing arts classes to young people via new means. We then looked at furloughing people and took those decisions when we had to when the breadth of government support available to us became clearer.
“Now, I am pleased to say we’ve moved considerably. We have been running online with a great take-up from our current students and clients, and we established a sustainable model to help carry us through until normal service can resume.”
Having managed to pivot and find a foothold in an upward struggle, Limpkin is remaining optimistic that Razzamataz Medway will have a bright future to look forward to in the long-term.
“This period has shown us that there are always opportunities in times of chaos. The next 12 months will be very different to what we had anticipated: this is our tenth year in business and all of our big celebration plans have already had to be rethought. Our focus going forward will be about looking after and supporting our existing customer base and keeping them with us. We will also be focusing on helping our young people and growing their confidence, which undoubtedly will have taken a knock during this time.
“It is also important to ensure that we have a viable business over the next 12 months and beyond once we break the shackles of the pandemic. We will take stock of everything by the day and by the week to ensure we make the right decisions for our customers and for our business.”
