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Nobody will ever compensate the loss of a good or viable business in circumstances out of the owner’s control. A Conservative Government that champions itself as the party of business should know better

March 29, 2020 Leave a comment

img_5431Watching events as they are unfolding is painful, especially when you know they are avoidable and that our decision makers have alternative choices. It has prompted me to write passionately over recent days about how our politicians should be mitigating the impact of the COVID-19 shutdown.

The ‘help’ that the Government is giving people is not only piecemeal – leaving holes for many that it is supposed to be helping, but for EVERYONE and specifically the people who need help that the response to the shutdown doesn’t reach, what the Government is doing doesn’t go anywhere near far enough.

Everyone has something to say about all of this – especially those who have a platform on social media, in the press or on TV.

But the problem with the ‘profiled’ speakers who have been allowed to become too influential (Sadly there are too many to mention), and with it too fond of their own voices, is that the words they are giving us are usually little more than subjective opinion. What they pump out to every ear that will hear them is not based on experience or even getting out there and talking to real people, but how they look at the world and how they think things should be. It is based purely on the scope of the very narrow lens through which they see their own life.

Whatever our experiences of life up until we found ourselves at this point, we are all afraid. But we are afraid for different reasons.

My fear is not about catching Coronavirus and what it could do to me – as I’ve done the life-threatening illness thing before. It’s how the response to the Crisis is creating many more problems than it is going to solve, and that if we are together going to be able to make the best of the opportunities and positives that we have ahead of us once the critical stage of this Crisis is over, we do not have the right people leading us to make that either a practical or tangible option for us all.

The people I am most afraid for as I am writing this today, are the self-employed and the owners of small businesses who are likely to be sat somewhere right now on the verge of crying. Many are facing up to the stark reality that on one hand they have been stopped from trading for what in principle if nothing else is a good reason, but on the other they have had their ability to service bills, pay back debt and survive taken away from them without any bad decision on their part. This isn’t the result of something they have done, or could have planned for and there has been no opportunity for choice on their part.

What they are now experiencing is not happening in isolation. Many people will be affected by a chain of events that will start with them and cascade throughout our economy reaching every sector and every level of the supply chain.

People who work for them will lose their jobs. Suppliers and Service Providers will not have their bills paid. Customers will lose shops, their local tradesman and local services of all kinds that are not supplied by big business – because big business cannot offer the level of service and make the margins that their shareholders demand by offering customer experiences of this kind – whereas all these committed small business owners and self-employed people before Coronavirus did so willingly and by choice to build relationships with their customers and differentiate from the profit-led Corporate behemoths.

For those who have already lost or now stand to lose what was only weeks ago a good and viable business, no form of compensation will make up for the consequences of that loss, which will hit them very hard – especially when the responsibility for the loss sits squarely with our Government and the choices it has made.

From late 2010 I experienced what it was like to be in a very similar situation when the successful business I had set up and run for nearly 7 years had a key contract pulled from under me, simply because of changes to my customer’s marketplace. It was in no way related to the quality and value of the service I delivered.

Even though I had anticipated changes might come to the industry and I had negotiated clauses within our contract to make sure everyone would get paid and I would be left with enough to start again, I never anticipated that when it came down to it, a high profile customer like mine would refuse to pay a £six-figure final bill, simply because the legal system is such that it knew it could and would get away with it.

I was dropped completely, well and truly in the shit. Not because it was the conscious aim of the managers and lawyers responsible to get up and screw me, the people who worked for me and the people who supplied me that day. They did it, because the world we live in tells us we don’t have to think about the impact of what appears a sound business decision and has no downside or consequences for anyone else.

This is the kind of limited, self-serving and blinkered thinking that the Government is employing right now.

After months of fighting, I put my Company into Administration, not because I wanted to or felt it an easy way out. I did so because I simply didn’t have any other choice.

It’s because I’ve been in that situation that I can say openly that for many, that’s where the real problems begin.

Self-employment or owning and running a business is different for everyone and for different reasons we all find ourselves with the ability to contribute different things to what we do.

For some of those who are facing down the reality that the money the Chancellor has allocated won’t go far enough or won’t arrive soon enough, they will at least not have tied themselves into loans, leases or contractual arrangements of any kind to support their business.

The lucky ones -may have their day-to-day needs met fully.

But it’s more likely they will be met only in part by the money that the Chancellor has allocated to the self-employed.

All of the domestic bills like the rent, mortgage, phone and everything else still have to be paid.

But the people most likely to be able to manage on being given what is pretty much the average wage are the ones who are most likely walk away with a skill or trade still behind them that is always in demand by others. Put simply, if they’ve worked for themselves and had problems, it simply won’t be thought about.

However, as you scale up and away from the domestic bills that you may already be feeling left high and dry with when it comes to paying, for the self-employed who are directors, partners and company owners, there are further levels of commitment to meet and the reality they are facing is simply not the same.

Vehicles, Premises, Licenses, Fuel, Tools, Insurances, Loans, Vehicle Tax, Mortgages, Professional Fees, Bank Fees and plenty of other things need to be paid for – even if a business is standing still. So giving anyone what is the maximum of the average monthly wage who own and runs a business – if they qualify – is far from being a good start if the aim is to stop business falling over when you have told them to stop trading.

The people who own, run and set up small businesses without third party investor funding form the backbone of our business-based economy. They are the entrepreneurs and the people taking the real risks and there is a lot more to it than the tax status of being ‘self-employed’.

They are people who have really done something on their own who shouldn’t be treated like social pariahs or like they don’t exist when their business ‘fails’.

Beyond the financial hardship and turmoil that the Government is condemning them to face, there is a very harsh reality of how people in this Country judge what they inevitably assume to be failure, and in particular where the incorrectly but nonetheless interchangeable terms bankruptcy and administration are concerned.

Instead of looking further and more closely at the reality of why people may have found themselves dealing with the horrific process of managing their own bankruptcy or putting a company they own into administration, there is an immediate default assumption of wrongdoing on the part of those looking on, rather than even the merest hint of appreciation for the value of the experience and the lessons that will inevitably been learned.

Some businesses fold in ‘normal times’ because of stupidity or more likely because the person driving it is out of their depth and in a field they don’t understand. But for just as many if not many more, the reasons that have brought them to that place are simply out of their control.

These are people who would actually be an asset to any business because of their experience of dealing with these problems. Instead business all too often views them as being a risk and if there isn’t change in the way society looks upon the realities of business closure and what caused them, many brilliant people of exceptional understanding and talent will quickly join the ranks of the long-term unemployed.

It is not too late right now for the Chancellor and the Government to take a leap backwards, for them to review and restart the package of measures they are putting in place and this time get it all right from the start. I for one would certainly think it big of them if they do.

But as the days of this shutdown become weeks and the weeks then become months, good businesses and employers that were viable only days ago will be forced to close with companies going into administration and the owners declaring themselves bankrupt. Not voluntarily or because they didn’t know how to run their business. But because a Conservative Government didn’t understand the realities and consequences of the decisions it made in a crisis and wouldn’t consider the alternative choice.

Nobody in the supply chain of business, industry, services, property or anything else will lose out during a standstill, IF the flow of money throughout that chain is held up at every stage. Not just at the start.

Politics, political leanings and tribalism don’t count here. It’s simply about doing what is right.

The only way that EVERYONE who has lost their income as a result of the Shutdown can be treated fairly, whilst not being condemned to suffer or lose their livelihood too, is for the Government to stop ALL bill payments to ALL creditors, ALL interest payments and the accumulation of debt for EVERYONE – until such time as the Shutdown is over and EVERYONE has been able to return to work.

To not do so when it is a clear option shows an absurd level of inability on the part of Politicians to step out of their own shoes to taste and feel the reality of how the decisions they are making are going to manifest in our lives.

If businesses of the type, size and number that will be left to fail because the Government hasn’t taken steps to treat EVERYONE fairly, and above all THE SAME, the British economy is going to fall over a cliff in a way that will never allow business to operate in the same ways again.

What would be good to see right now is the politicians that we have elected doing the right thing and making the right choice. We are now in very different times, and if they do not do so, people will suffer the impacts of the choices that they have made for a long time to come.

When this Government falls or we have new Elections, the Electorate will not be forgiving.

The majority of the victims from the Coronavirus will not be the people who have died or have been personally touched by grief as a result of the illness it causes. Most will be created by the missed opportunities, poor decisions and the failure to act equitably on the part of politicians driving an avoidable tragedy for us all that would not have been necessary if the Government had thought differently and made an alternative choice.

To those reading this blog who may be staring down the barrel of the business closure gun, I sincerely hope that the Chancellor will have a lucid moment, grow a pair and reconsider his choice.

Please hang in there as long as you feel that you can do so, because we have to hope that this episode will be shorter than we all quietly suspect that it will be, and that the shortness of time will therefore make closure something you can avoid.

If it doesn’t, please be assured that there are many of us out here who care. Closing down your business will be tough for many reasons that days ago you would never have even dreamed of. But it will be easier for you to deal with and recover from if you are honest with yourself about what you can and should do, and take all the steps you can to see the process through in the right way.

I believe that the experience that we are all now commonly sharing is going to change the way that most of us view the World. The communities we live in, the businesses we work in, the people we interact with and how we interact with them are all going to change as a result.

I am hopeful that when we come out of the other side of this, we will all consider the impact of the way we think about other people and the way that we then treat them and we will all be open to an appreciation of the different circumstances people find themselves in, that they may not be responsible for and were never there by choice.

 

 

 

 

 

 

 

 

 

 

 

 

 

Boris has gone too far with the shutdown and nowhere near enough to mitigate the true cost

March 24, 2020 Leave a comment

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So Boris has gone for the full lockdown and the draconian measures to ensure that we all behave ourselves, do what we are told to and basically stay at home.

What is the aim of this and what is the benchmark that will tell him his plan has worked?

Nobody actually knows. Not even the specialists and experts advising him. It’s guesswork at best and pretty much down to seeing how the wind blows.

The Government is simply making things up as they go along. That much was clear from Michael Gove telling viewers on GMB this morning that children from split homes have to stay where they now are, and then went on the BBC shorty afterwards that it’s ok for children under 18 to keep on moving between homes.

Through fear and nothing more, the people of this Country have had their freedoms and liberty removed by a Government made up of Politicians who have only ever been successful by being part of a system that promotes self interest as their only priority and cause.

These should never have been the people we had in charge of our Country during a Crisis.

Boris has done everything to make us believe that he would be the next Churchill. But he has shown himself as the new Nero instead.

Yes of course they all pay lip service to doing what’s best for all of us.

But the decisions they have been taking in recent days are not about real leadership and if Boris really thinks he’s a great leader, he’s already failed the biggest test of good leadership itself by falling into the trap of giving the most credibility to whoever has the loudest voice.

Nothing that can be said will take away or offset the personal tragedy unfolding for the those affected directly by Coronavirus and those who have or will die.

But the number of people who will survive the Coronavirus Crisis and deserve to live lives that are manageable for both the duration and once it is all over is by far significantly more.

The measures our inept politicians have taken are inequitable. They do not reach everyone who already needs or will need help. The steps they have taken continue to play up to the false concept that money is the real god, that bills must always be paid on time, interest is always payable and that those within the finance and banking sector or have the title ‘economist’ can never do any wrong.

By shutting down our society and our lives purely on the basis of preventing the NHS from becoming overloaded using delays and playing a game with time, Boris is condemning a significant number of people to ongoing state of fiscal servitude.

The Johnson Government is actively demonstrating that we do not live in a Country that is governed by those who believe everything should be equitable and fair.

People have and will die from Coronavirus – that much we know to be inevitable, no matter how regrettable or sad.

But the damage this fear-soaked and gutless decision to close down an entire population because our wannabe leaders simply feel out of control, and do not have the wherewithal to connect with and consider ALL of the people they were elected to represent is going to hurt many more.

The cure to this Crisis is going to kill and destroy the lives of many more victims than the cause ever will.

 

image thanks to unknown

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