Gift Focus inc Attire Accessories - July/August 2020

35 FSB BUSINESS FEATURE CHANGING LANDSCAPE Mike Cherry, FSB national chairman, looks at the changing economic landscape amidst the COVID-19 pandemic It is an undeniable fact that COVID-19 has completely changed the economic landscape. In December, before the virus began to spread and the UK government, as well as other governments across the world, announced a lockdown, business confidence was already poor. Back then, our Small Business Index confidence measure stood at -21.6. Now, latest figures released at the end of April show confidence has plunged to a new all-time low of -143.4. This paints a worrying picture for the future of the economy. With the shutters down, hardworking small retailers have not been able to rely on footfall to attract customers, so takings have plummeted. As the UK’s largest business support group, we have been campaigning as hard as we can to make sure nobody gets left behind as the economy begins to recover. New ways of thinking Despite worrying figures, in the period between January to April of this year, a very small share of small businesses actually saw their confidence improve. In the face of adversity, we have seen incredible strength from our members, who have had to adapt to a new climate, adopt new ways of thinking and take different approaches to marketing. In the retail sector businesses have already started making deliveries to customer’s homes. Some have also been able to offer click-and-collect and curb side pick-up, while still complying with social distancing rules. Many have reshuffled production lines and catered to new needs, to continue to supplement income. Small businesses are diversifying into providing new services or selling new goods. Before the lockdown hit, online retailing had of course been booming for many years, with millions opting to buy gifts, clothes and other products online instead of visiting a store. This well-established online presence is one key advantage for the retail sector. Many people who would have visited a shop to buy goods years ago had already changed their habits to buy through the internet instead before the lockdown took effect. That’s why small businesses are increasing their use of online platforms such as eBay, ETSY and Amazon, or are opting to sell through them for the first time. Online sales mark a source of income that have become indispensable to many, but adapting always brings its own set of challenges. Marketing Proactive marketing is important in any climate, but it’s now more important than ever. However, there’s no one size fits all approach. We’ve seen one in six small businesses develop a new or increased online presence – often through social media channels – to help them cope with the pandemic. For businesses that expected to stay open, this figure rises to one in five. Keeping in touch with customers digitally using Facebook, Instagram or Twitter is an easy, low-cost way to advertise your products and tip people off about special offers. Easing the lockdown But when things go back to normal, there is a chance that residual nervousness prevents would-be clients from visiting shops directly. Unprecedented times call for adjustments to business practices, but in a world of social distancing, there are positive steps you can take to ensure your business survives. ABOUT FSB As the UK’s business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed. FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. Yo u can follow us on twitter @fsb_policy and on Instagram @fsb_uk.