Preventing the winter blues without harming your business - Kidwells' top tips for winter survival.

It’s January, we've just experienced the coldest December on record and although we're currently in a mild spot, there still seems to be little respite from the wet, cold and miserable British winter.

So how is 2011 shaping up for British business, and in particular those in retail?

Overhanging snow on roof of Edinburgh Woollen Mill, Dereham courtesy EveningNews24The return to work following the Christmas break was accompanied by an increased VAT rate of 20% (its highest ever level). This increased the cost of goods and services for the already cash strapped public.

Snow and ice thwarted mail order deliveries, and made even conventional trips to the High Street difficult. On 6^th January HMV announced the closure of over 60 stores after weak Christmas sales: http://www.thegrapevinemagazine.com/?newsid=3557

How should the clichéd “nation of shopkeepers” bounce back? Promotions, discounts and incentive schemes can be used to attract customers, but businesses need to act proactively in order to manage risk and to protect themselves.

Here are Kidwells’ top tips for winter survival:

Risk assessment – it is essential to identify the hazards facing your business ie. who do you contract with and how secure are they after the recent economic difficulties? Are your debtors limited liability or do you trade with them personally - and do you know the difference? What are the terms of your invoices being paid and can this be reduced? Are you paying your suppliers in advance and will that money be lost if they go out of business? Could you agree new terms of payment for these services?  .

Snow clearance – your good intentions in the ice, such as clearing a ‘path’ for your customers or clients, could land you in hot water! Beware of clearing the pavement outside your business – if you are not thorough and a member of the public or your own staff slips, then you may be held liable for failing to exercise due care when clearing. Also, have you taken steps to prevent your internal floors becoming ‘slip hazards’ as if others tread in icy water, you may also be liable for injury for your staff and visitors if they slip.

Routeways – keep them clear – health and safety in the workplace is governed by European legislation which places positive obligations upon employers to provide a safe place of work; even hazard boards marking wet floors may obstruct pathways creating a hazard, liability and thereafter an insurance claim for a shopkeeper.

Workstation assessments – ensure your staff have a safe working environment when working at the counter, moving goods or working on the computer, leads from temporary heaters are an example of a trip hazard and it is the employer’s responsibility even if the employee plugs the heater in!

Employment Policy health check – This assessment is essential in your shop or business and you should encourage input and recommendations by all staff and managers when you review policies and procedures. Do your policies comply with employment law and in particular the Equality Act 2010? Be careful that you are not discriminating against staff members (even if this is unintentional). If matters deteriorate and you are forced to make redundancies or reduce staff working hours, take professional advice up-front to make sure you don’t add to your costs and end up at Employment Tribunal.

Tax protection - seek accountancy advice to ensure that your business is making the most of all necessary exemptions and reliefs. You pay your accountant so make the most of what they offer; remember that your advisors may not be able to anticipate your business’s changing needs, so the best advice is to ask.

Cashflow protection – can you fix an advantageous overdraft rate with the bank at a time of historically low interest rates? You should do this before you need it as the facility is often assessed on good trading of your business and therefore when you need it most, during difficulty in trading, you will have to work harder to obtain it.

Business structure – is it time to consider incorporating as a company to prevent you, as a business owner, becoming personally liable for business debts and claims? Again, your solicitor and accountant can advise.

Nick Price, Solicitor, Director Personal Injury.

For a no obligation discussion please call 01432 278179 or e-mail Michael Horne, Director Litigation mh@kidwellssolicitors.co.uk. We are happy to meet with you at our office or at yours with no charge to discuss your issues and your ideas for the future of your business.