Kitchen table talent: Britain’s kitchen tables are generating more than £37bn towards the British economy

Resurgence of entrepreneurship expected in Britain following the pandemic

The home kitchen and dining area have become the most lucrative money making locations in Britain, that combined are generating £37.4 billion to the British economy during lockdown – that’s being coined as ‘kitchen table talent’. The research commissioned by Attic Self Storage, revealed that although restrictions are being lifted, 41% of office workers are expected to continue their jobs from home, with 44% saying it’s the most productive place they have ever worked.

For office workers, with 67% working for SMEs and 33% global heavyweights – over a quarter (28%) said their leaders see no point in returning to costly office spaces; and 19% are shutting down the office so that their staff can work mobile from home.

With Brits getting used to a work from home lifestyle, people are having to get creative. A quarter (25%) are now making their homes multifunctional; 27% decorating or converting their homes; 36% decluttering to carry on working from home – and self storage is being hailed as the biggest support for kitchen table talents, with 51% of Brits saying they would opt for storage over upsizing their properties or office space.

The most productive places to work from home are: 

• Kitchen table / dining area
• Sofa / living room
• Bedroom
• Home office/ study
• Garden / garden shed
• Balcony
• Garage
• Children’s room
• Campervan
• Bathroom

There is also expected to be a resurgence of entrepreneurship in Britain, with nearly two in five (37%) Brits saying they are considering their own venture as a result of the pandemic.

Those wanting to start up on their own stated 12% – wanted to become their own boss; 10% – are inspired by location independence; 9% – want to spend more time with loved ones. The top industry Brits want to start up in is technology and software.

Top industries Brits want to start businesses in: 

• Technology and software
• Freelancer / Consultant
• eCommerce
• Finance/ investments
• Arts & crafts
• Property / construction
• Travel / tourism
• Hospitality
• Health/ Fitness
• Education

Brits working for themselves are expected to generate around £54 billion towards the economy – where on average those going it alone hope to make around £4,781 a month at their kitchen/dining tables.

Frederic de Ryckman de Betz, founder and CEO of Attic comments: “We have seen an increase in business leaders and kitchen table talent opting for storage over office space or upsizing their properties over recent months. To help support this talent, Attic is expanding by opening new locations including in Marylebone this August that offer  27 / 7 access for convenience. It’s great to see that Brits are finding new ways of working to boost the economy.”

How to prepare for v-shaped recovery

According to recent reports, such as those from Bank of England economist Andy Haldane, the UK could recover quicker than expected, with a v-shaped economic recovery.

In a v-shaped economic recovery, the economy suffers a sharp, but short-lived period of economic contraction, such as that experienced in the last three months, as exemplified by new figures showing how the UK economy shrank more than first thought between January and March, contracting 2.2% in the joint largest fall since 1979.

This is followed by a quick return to pre-crisis levels of growth.

Although there are continuing risks of unemployment with the furlough scheme ending at the end of October, an increase in household spending could restore the economy to its previous position.

Whatever the outcome of the next few months, it is important that small and medium enterprise businesses prepare themselves to ensure long-term survival and success.

How can I prepare my business?

Depending on your business sector or industry this could mean an increase in demand, sales or orders. As a business owner, you should prepare for this responsibly, ensuring you have the facilities and stock to cope with demands, as it may offer your business a much needed boost after times of challenging hardship for a lot of sectors in the UK.

For businesses that are eligible, the CBIL scheme is still available to offer finance facilities backed by the government to offer support for small businesses during the pandemic. However, with or without this scheme it is essential that businesses keep cash flow as strong as possible and invest in coping with an increased demand, whilst keeping costs low and a healthy balance.

Cashflow

Firstly, it is important to create a strong cashflow forecast, that includes income such as sales, loans, government funding and any other sort of investment into the business, as well as future projections for such figures. This is to be followed by expenditure such as supplies, equipment costs, staff wages, business bills such as rent and tax, and predict this as accurate as possible by planning a budget, to ensure you know what is coming and going. For advice on how to improve your cash flow see our support post here.

Lease it

The old saying ‘cash is king’ never gets old, and you’re going to hear it a lot more in the coming months. We preach this to businesses because it allows you to have the latest equipment through financing assets, whether that is gym equipment, catering equipment, It equipment, frying equipment or hard assets. By using equipment finance, leasing and using asset finance, you can keep money in the business, maximise your tax position, trade to a high standard and keep a healthy cash flow and balance without having to sacrifice a large expenditure at any given time.

Live within your means

By managing expectations realistically and planning for a gradual increase in trade whilst managing expenditure effectively, you can start to grow your business as the economy grows, this means planning cashflow, taking leasing options where possible and starting at a reduced level compared to pre-crisis and planning for a rainy day whilst still trading and providing your customers with a good service to ensure that if any subsequent economic crises are ahead your business is in a place to withstand it.

We’re happy to speak to any business about their finance needs, whether that be upgrading equipment, replacing equipment or purchasing brand new equipment, these options are second nature to us and always represent the sensible option for helping your business to grow.

For further information please visit our website www.johnsonreed.co.uk

Another Lockdown is the top concern of nearly half of UK’s small businesses

As many small businesses tentatively reopen, new figures from Amaiz, the small business banking app, has revealed that nearly half (47%) are now more worried that there will be another lockdown than anything else. This worry beats cashflow (44%) and being in debt (20%) as owners fear the detrimental impact that another lockdown could have on sales, customer relationships and paying staff and bills. The research was carried out for Amaiz by 3Gem.

Alexander Seaton of Alexander Chocolate, an awarding winning bean to bar chocolatier, explained why it is his top concern: “We’re a luxury chocolate brand, so predominantly serve the hospitality industry. The lockdown was devastating; we lost 90% of our sales overnight. That business is now returning. I don’t think it would be an exaggeration to say that I would be in tears if, after all the struggles of the last few months and surviving on almost no income, we had to halt the business again.”

Verity Clarke of Verity Clarke Hair agrees: “The lockdown meant I was not able to do what I love, hairdressing. I received no government support at all, so I only just survived thanks to the support of my loyal customers who agreed to buy gift vouchers from me. As an industry, I think the mental-health impact on business owners in my sector having to go through it all again would be huge.”

The government put in place a number of measures to help small business affected by the lockdown. However, many, like Alexander Chocolate and Verity Clarke Hair, didn’t qualify for government help. This could be for a variety of reasons. In the case of both Alexander Chocolate and Verity Clarke Hair, they had not been in operation long enough, so both were left with nothing but outgoings.

Matt Goddard, head of acquisitions at Amaiz sympathised: “Alexander Chocolate and Verity Clarke Hair are just two of the  numerous small businesses we’ve spoken to, during the lockdown, about their struggles, and it is has been heart-breaking to see successful businesses, run by hard-working owners, reduced to nothing. Most are resilient, they have to be to run a business, but a second lockdown, like the one we saw in Leicester, is a terrifying nightmare for many of them.”

Salisbury-based Alexander Chocolate is optimistic about the future, provided the easing of restrictions continues: “One of the first orders after ‘super Saturday’ was for 62.9kg of chocolate, which, coincidently, is exactly my body weight. I hope it is a sign that we’ll bounce back. We’re relieved and grateful that our customers are loyal and are returning to us.”

Colchester based Verity Clarke is also optimistic: “I’m busier than ever and I think that will continue. I offered advice, via Zoom, to people wanting to style and cut their own hair during lockdown, and this helped to nearly double my social media followers.”

Matt concluded: “As businesses start up again it is more important than ever to be well-prepared for any challenges ahead. That means ensuring your business administration is up-to-date, particularly the accounts. It is also important to review the implications of different business scenarios so you can manage worst case, best case and expected scenarios efficiently. If you can, pay your suppliers, you don’t want them to struggle, or close, due to cashflow issues.”

The Amaiz banking app was launched in March 2020, just before the pandemic, and helps small businesses by combining banking with bookkeeping. The premium account is available at £9.99 per month. However, there is a free version that charges just 20p per outgoing transaction. The app comes with numerous unique features that make it possible for business owners to manage their bookkeeping quickly and easily between customers. There is also the option to include a contactless card reader for a low set up fee and transaction charge. To set up their account a business owner simply has to download the app then prove their ID and their right to work in the UK. There is no credit check so the process can be done at home very quickly.