< Previous10 Business Link www.blmforum.net BUSINESS LINCOLNSHIRE Q&A What new challenges are visitor economy and hospitality businesses facing as they reopen this May? For visitor economy and hospitality businesses, there is continued uncertainty over customer demands and trends, which is making it tough for businesses in the sector to plan ahead. Customers are still feeling cautious, and many have also changed their habits over the past 12 months. They’ve chosen to invest the money they would usually spend on tourism and hospitality in other areas, such as home leisure items. There is a fear that their focus won’t return to the sector at the same level it was pre-pandemic, because customers have already spent the money on items such as garden furniture and BBQs – even sales of outdoor bars have gone through the roof! To survive post-lockdown, visitor economy and hospitality businesses need to accept that customer needs have altered since before the pandemic and adapt to their changing habits. Businesses will need to offer them something more than they can get at home, to add more value and create an experience. Elements like flexible booking and cancellation policies will also need to be considered for these more cautious customers, as well as an increased focus on cleanliness and health and safety compliance in a post- COVID summer season. and safety perspective, as they have more control over the spaces. Self- catering accommodation also allows larger groups to holiday together, which is important for those hoping to spend more time with friends and family after a year spent mostly apart. Businesses of all types in the sector will have to adapt to shorter lead times, as people are waiting longer to book due to the uncertainty, which may affect the cashflow for many visitor economy businesses. But if tourism businesses listen to what customers want and adapt accordingly, there will also be plenty of opportunities to take advantage of. How can local people help to support their local visitor economy and hospitality businesses after lockdown? It may seem obvious, but we all have a responsibility locally to act safely and stick to COVID-19 restrictions while they are in place, so that we remain a low-risk county and visitors feel safe to visit. Lincolnshire is also known for its many beautiful outdoor spaces, which is perfect for those still anxious to be indoors so soon after the pandemic. I also think that we can do a lot worse when planning our own staycations. Why not stay in Lincolnshire? – the Visit Lincolnshire website showcases the Q&A Gill Harvey, Visitor Economy Adviser, Business Lincolnshire What does a post-lockdown summer spell for the visitor economy sector? We spoke to Gill Harvey, Visitor Economy Adviser for Business Lincolnshire, on what tourism businesses can expect this summer season. Gill Harvey So, this summer is going to be different from summer seasons pre-pandemic? Definitely! Staycations will rise this year – according to a YouGov poll, seven out of 10 British people would happily swap travel abroad if it means the UK can open up again domestically. Customers are considering swapping their annual two-week holiday for several shorter breaks at home, and there is already an increased demand for self-catering accommodation and campgrounds. The downside of the latter is that hotels might suffer, as customers view these self-catering premises as more secure from a health 10-11.qxp_Layout 1 04/05/2021 09:51 Page 1www.blmforum.net Business Link 11 BUSINESS LINCOLNSHIRE Q&A many amazing attractions, experiences and activities we have in this county – it will really open your eyes. Also, don’t be afraid to give owners feedback! Businesses are always grateful for constructive feedback that they can use to improve their services and bring value to their customers. And finally, don’t forget to share your love for your county! Share pictures of your local excursions on Facebook and Instagram and help to raise awareness of Lincolnshire’s hidden gems! What are your predictions for the visitor economy and hospitality sectors in 2022? I think tourism in 2022 will be heavily influenced by the vaccine rollout – not just in the UK, but globally. Another recent YouGov poll revealed that two- thirds of people still don’t feel comfortable holidaying abroad, and I believe overseas travel will still struggle in 2022. This means that local businesses have a huge opportunity in 2021 to wow customers and encourage them to come back to Lincolnshire for another staycation next year. On a positive note, I believe that people will start booking earlier in 2022, which will be a big boost to visitor economy businesses after a tough two years! Are you a visitor economy or hospitality business hoping to adapt to your customer’s changing wants and needs after COVID-19? Visit the Business Lincolnshire website to access Gill’s fully-funded advice and support at no cost to you: www.businesslincolnshire.com. © Shutterstock /trabantos @businesslincolnshire @BusinessLincs @Businesslincolnshire © Shutterstock /trabantos 10-11.qxp_Layout 1 04/05/2021 09:53 Page 212 Business Link www.blmforum.net COMMERCIAL PROPERTY N ot only do Yorkshire and Lincolnshire have the transport connections linking it with the rest of the UK and beyond, but it has the space to house a massive footprint of food distribution and warehouse facilities. But as well as providing important services and space for food and drink industry players, our region is also allowing companies to develop, research and grow. Indeed, food industry businesses will soon be able to benefit from state-of-the-art technology at a brand-new, bespoke agri-food research and development facility in Lincolnshire. With construction now complete, the University of Lincoln’s Centre of Excellence in Agri-food Technologies is the first building on site at the new South Lincolnshire Food Enterprise Zone in Holbeach, and the latest development in an ambitious vision to put Lincolnshire on the map as a global leader in the agri-tech sector. Building on the success of the University’s National Centre for Food Manufacturing (NCFM), it will act as an innovation hub – primarily promoting the rapid uptake of advanced technologies such as robotics and automation across the food supply chain. Expert staff will be based at the Centre, including industry scientists and their support teams, uniquely focused on delivering innovation support services, pioneering research, skills provision and knowledge exchange for agri-food businesses across Lincolnshire and beyond, strengthening the county’s position as a key player in the agri-tech sector. Specialist facilities including microbiology and chemistry laboratories, a high-tech test kitchen and sensory suite, break space and seminar rooms, will be readily accessible to businesses located across the Food Enterprise Zone and the wider Greater Lincolnshire Local Enterprise Partnership area. The South Lincolnshire Food Enterprise Zone is funded by the Greater Lincolnshire LEP, Lincolnshire County Council and the Midlands Engine, with South Holland District Council and the University of Lincoln partners in the scheme. A physical launch event for the building is scheduled for the autumn, subject to Government guidance at the time. Professor Val Braybrooks, Dean of the University’s Holbeach Campus and NCFM, said: “The Centre of Excellence in Agri-food Technologies is a fabulous facility A bigger bite With its excellent road, rail, sea and air transport links, and vast agricultural land, our region is a veritable breadbasket for food production and distribution. Here we explore some of the most exciting recent developments. 12-15.qxp_Layout 1 30/04/2021 06:55 Page 1www.blmforum.net Business Link 13 COMMERCIAL PROPERTY 15 Á which will significantly strengthen the University’s capacity to lead technical innovation and skills development with food businesses and support those high-tech, entrepreneurial businesses located on the South Lincolnshire Food Enterprise Zone. “We are delighted that the National Centre for Food Manufacturing should be pivotal to this exciting development which will put South Lincolnshire and Greater Lincolnshire’s Agri-food sector on the global map, affording an unprecedented level of opportunity for both businesses and our local communities.” As if that alone wasn’t already enough of a boon for Lincolnshire’s booming food industry, Lincolnshire County Council and South Holland District Council have recently acquired a 28 acre site on the north west of Holbeach to secure the growth potential of the South Lincolnshire Food Enterprise Zone. The South Lincolnshire Food Enterprise Zone (FEZ) is a pioneering development which is being delivered by a partnership consisting of the Greater Lincolnshire Local Enterprise Partnership, Lincolnshire County Council, South Holland District Council and the University of Lincoln. Its vision is to create bespoke, high quality employment space for new businesses and SMEs specifically in the agri- tech sector. It will place particular emphasis on creating a suitable environment for high tech businesses developing technology to evolve the vital process of food production. The additional 28 acre site, part of phase two, is strategically important in safeguarding the delivery of this prestigious development which will generate employment opportunities and investment to the area. It will provide the scale of development needed to ensure that the agri- food sector, fundamental to the local economy, can flourish by creating high quality business space. Phase one of the scheme is already progressing well with the University of Lincoln recently completing a brand new “Centre of Excellence” on the site. In addition, Lincolnshire County Council is commencing work on the construction of a ‘Hub’ building that will provide managed workspace for small companies in the Agri-Tech sector. The FEZ will cement South Lincolnshire’s reputation as a South Lincolnshire Food Enterprise Zone 12-15.qxp_Layout 1 30/04/2021 06:55 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby DN31 2QE Tel: (01472) 310301 • Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability Easy in/out terms A range of affordable office sizes 3 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, the flexible in/out terms of contract mean confidence when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 12-15.qxp_Layout 1 30/04/2021 06:55 Page 3www.blmforum.net Business Link 15 COMMERCIAL PROPERTY © Shutterstock /Alex Marakhovets major centre for agri-tech, boasting a high concentration of cutting-edge companies, cultivating innovation in areas such as robotics, automation, well-being, low carbon and packaging. The existing businesses currently trading on the site, Frontier and Sands Agricultural Machinery will both remain and continue to serve their clientele from their existing premises. Lastly this issue, Leeds-based Fullers Foods is expanding its headquarters in the centre of the city to create a safer environment for its employees as they return to work. Fullers Foods International is adding another floor to its offices to help it operate in a spacious and healthy workplace. The new fifth floor at Fullers’ HQ in Park Square will be for clients, with the first four floors now devoted purely to staff. The company is investing £600,000 in the refurbishment which includes the addition of a predominantly glazed new fifth floor with panoramic views across Leeds. The construction and fit out is being undertaken by Bradford- based Cardinal. Jason Fuller, who owns and runs Fullers jointly with his brother Adam, explained: “We are keen to get our team back into the workplace in a healthy, safe and appropriate manner. This will enable face-to-face collaboration, better team work and product development. The team have worked fantastically well remotely and, whilst we recognise the last 12 months will have a big impact on the future of working patterns, we are all ready to get back to the workplace. “So we need to ensure that this is carried out with our colleagues’ well-being, and the well-being of our customers, as our top priority. This £600,000 refurbishment programme does exactly that.” 12-15.qxp_Layout 1 30/04/2021 06:55 Page 416 Business Link www.blmforum.net CORPORATE FINANCE Late payments are one of the biggest pitfalls facing businesses, especially for smaller firms and start-ups. According to the Federation of Small Businesses, late payments contribute to 50,000 insolvencies every year, costing the economy £2.5 billion. Though much of the blame here lies with the billed party not paying in the specified time period, the companies themselves do bear some of the burden. Indeed, seventy-five per cent of SMEs would fear taking action against a late payment for fear of damaging client relationships. For these reasons, invoice finance has become a literal lifeline. This is the simplest means of releasing cash tied up in a businesses’ outstanding invoice. It essentially sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cash flow issues that arise from late and unpaid invoices. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty- eight hours instead of the typical thirty- day period specified on most invoices. As with all forms of financing, however, there are things businesses should consider – namely the kind of invoice finance a company requires. There are several different kinds, from invoice discounting to spot factor, so finding the right one is key. It’s also important to look at individual providers themselves, as some will insist on managing credit control themselves which could, understandably, alienate some customers. Of course, invoice financing is far from the only finance solution businesses can draw from. Asset-based finance, for example, is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cash flow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy-outs (MBO) and management but-ins (MBI). Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Private equity, on the other hand, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and/or, sometimes, a seat on the board. The draw for businesses is that private equity can be used to finance MBOs, or to provide equity capital to support growth plans. Although many businesses might be loathe to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. For those looking for capital quickly, it’s important to bear in mind that securing private equity is often a time-consuming process and securing funds isn’t always guaranteed. A light in the dark Securing corporate finance can be a literal lifeline, especially at a time when businesses are getting back on track and preparing for the post- pandemic economy. 18 Á 16-18.qxp_Layout 1 30/04/2021 06:57 Page 1www.blmforum.net Business Link 17 CORPORATE FINANCE © Shutterstock /NAR studio 16-18.qxp_Layout 1 30/04/2021 06:57 Page 218 Business Link www.blmforum.net CORPORATE FINANCE Another form of private finance is an angel investor who, simply defined, is a high net worth individual who makes use of their own personal disposable finance and makes their own decision about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide their experience, knowledge and contracts, making them especially attractive to early stage businesses. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million are becoming more commonplace as angels group together in syndicates. Although angels are one of the most significant investors in start-ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact compared with a private equity firm. As we have already explored, capital is often sought to help fund MBOs which is a transaction where a company’s management team purchases the assets and operations from the business owners. From a manager’s perspective, an MBO is an attractive option as it allows them to take the reins and enjoy greater control and freedom owning the business rather than serving as an employee. It’s equally advantageous from a seller’s point of view as it allows corporations to shed non-core divisions or to retire. A typical MBO will see a management team pooling resources to acquire all or part of the business they manage, and this financing is often comprised of personal sources, private equity and seller financing. An MBI, on the other hand, is where an external management team acquires a company and replaces the existing management team. In an MBO, the management team is a known quantity and therefore has a greater understanding of their business and its employees, but an outside management team will need to become acquainted with a company’s operations, as well as build up relationships with clients and staff. Regions across the UK will also boast their own funding initiatives, designed to bolster the local economy and sure up businesses in the area. In our region, there’s the Northern Powerhouse Investment Fund, facilitated by a collaboration between British Business Bank and ten Local Enterprise Partnerships in Yorkshire and the Humber, the North West and Tees Valley. It provides over £400 million of investment to boost SMEs in the North with funds coming from the European Investment Bank and the European Regional Development Fund. Elsewhere, there’s the Sheffield City Region’s Jessica Fund, which was established back in 2010 and has invested tens of millions in the region, providing debt funding for commercial property and regeneration projects. Businesses are beset by all manner of challenges and financial pitfalls, doubly so over the last year, but there exists a variety of different finance options in order to circumvent these issues and keep trading. © Shutterstock /lovelyday12 16-18.qxp_Layout 1 30/04/2021 06:57 Page 3www.blmforum.net Business Link 19 CORPORATE HOSPITALITY © Shutterstock /K.Decha C orporate hospitality, wining and dining, team building and conferences, they’re things we’ve all gotten used to after years in business and yet social distancing and lockdown may well have left us out of shape on all of them. It’s been easier to rely on Zoom calls and emails for almost a full year now, but the excuses that made that a possibility will soon be gone. For some, it may be easy to get back into the old art of wining and dining, but others may need a refresher. Our suggestion would be to visit a conference or networking event yourself before planning one of your own. See how organisers are handling the still existing hygiene and safety rules and get a feel for networking again. There’s not much point investing into such a thing unless you and your business are going to profit from it after all. Luckily, there are plenty of B2B events going on in our region and networking groups are keen to get back into things. Don’t forget to include staff in this as well, especially if they have been working from home for months on end. There’s a very real chance that standards have slipped, and an even more likely chance that coming back to an office might lead to friction between team members. Businesses with small teams that rely on excellent teamwork may even want to consider kicking things off with a small “back to work” social event or even a teambuilding exercise. Failing that, taking a team out for some drinks and a meal at the very least will give Social once more With lockdown ending, it’s finally time to start getting back to business, but after so long being socially distant, how out of practice are we? 20 Á 19-21.qxp_Layout 1 30/04/2021 06:58 Page 1Next >