Q&A Thursday Episode 7
Q&A Thursday Episode 7
Welcome back to Q&A Thursday Episode 7 with Orlagh and Jacob. Today week we are talking about the different businesses that have gone into administration as well as reducing staff and stores. We will also discuss the critical elements of starting a business and how Mustang can help.
Due to the coronavirus pandemic, many businesses have struggled as sales have come to a halt. You may have seen that many companies are reducing the number of staff and shutting down stores. WH Smith is considering cutting 1500 jobs, and betting company William Hill is closing 119 stores.
DW fitness has suffered significantly during the pandemic. Due to government restrictions, all of their gyms and stores have remained closed. As the company wasn’t receiving any cash and had to pay their fixed costs, they had to go into administration. DW had 73 gyms and 75 total stores, all of which are going to close. The massive closure of stores and gyms will result in 1700 people losing their jobs and becoming unemployed. As well as the closure of their physical stores, their online retail store will no longer trade. Dave Whelan stated that the closure of the gyms and stores comes after the UK government ignored the gyms.
Pizza Express is another company which has made massive changes. They are now considering whether to close down 67 out of their 449 restaurants leading to 1,100 total job losses. Approximately 166 of the restaurants are taking part in the Eat Out to Help Out scheme to boost the hospitality industry. Pizza Express has said that making these changes will help to make them stronger financially.
British Petroleum is another large company in the news this week regarding their struggles with the pandemic. BP has announced it will cut dividends in half after a $6.7 bn quarterly loss. The loss comes after global oil demand plummeted. British Petroleum expects oil demand could be up to nine million barrels lower than this time last year. Such a decline has already caused BP to cut 10,000 jobs, 2000 of which are in the UK.
With many companies reducing staff and closing stores, many people in the UK are now without jobs. Many will find employment, but many will turn to start their own business. In 2019 over 600,000 new companies were founded, and there is likely to be an increase this year. Although starting a business may have risks, it is also enriching.
Should I start my own business?
During the pandemic, there have still been many start-up businesses, and these have played a significant role in keeping the economy going. A lot of new companies have helped to shift into working online, increasing the numbers of people working from home. It can be challenging to start your own business; however, there are many benefits to this if you are fully prepared and have an efficient marketing plan. One of the main advantages is that you have a lot of control. You could potentially earn more money, but this takes a lot of hard work and time. It doesn’t happen overnight.
Although starting your own business can bring many rewards, it is also a risky decision to become a sole trader. One primary risk start-ups face is an unpredictable cash flow. This pandemic has brought economic uncertainty to many businesses with demand for many products falling. This uncertainty can be especially devastating to small or start-up businesses where sales will be the only source of income for the company and owner.
What do you need to start a business?
If you believe starting your own business is the right direction for you, then there is a lot of aspects to consider to ensure it is a success.
It starts with having an idea. Your idea must be something which is needed, whether this is a product or service. It’s useful to look at your competitors to see what they are doing, take inspiration but do not copy them. Try to be unique.
Then you need to create a plan. What is your company’s objective? Who is your target audience? What do you want to achieve? Identify your goals and make sure you budget your finances. A healthy plan is critical to having a new business.
There are other essential elements to consider, including having an online presence. A website is critical for reaching customers and creating a place to upload all relevant information. You should take advantage of free social media platforms like Facebook, Twitter and Instagram. However, it is vital to execute social media marketing effectively by creating engaging content to build brand awareness.
How can Mustang help?
Mustang provides many different services to help your business build and grow. These include services such as photography, social media marketing, SEO and most importantly, website development. As you know, a website is critical for any business, especially in this current climate.
We currently offer a website package for small businesses starting from £49. This offer includes a 3-page e-commerce website, SEO optimised content, PayPal/Stripe integration, a wide selection of themes, and it is all built and set-up in 7 days. It is a great deal for new businesses to build up their online presence and to show customers you are professional and reliable.
If you have a question regarding the offer or Q&A Thursday Episode 7, please email us at firstname.lastname@example.org or call us on 01925 754766 and we will be more than happy to help you.
If you enjoyed Q&A Thursday Episode 7. Don’t Forget to Tune in every week for Q&A Thursday with Jacob and Orlagh.