Author: Mentor Sophy Robinson (02/06/20)

* (Please note content current at time of publication and these will be subject to alteration by the Government. Readers are advised to check guideline updates.)

Dorset Business Mentors, a program part funded by the Dorset Councils whereby business owners can access invaluable support from volunteer mentors matched to their need, have, more than ever before, been helping business owners in the leisure, outdoors and holiday sectors during this time of pandemic. This has included helping owners overcome the immediate challenges presented by lock-down as well as being prepared for the rolling back of restrictions. With the latest 14 day quarantine measures* acting as a deterrent to those thinking about overseas holidays, the UK ‘staycation’ market is a great opportunity for entrepreneurs who are ready to act.

Mentor, George McElroy (photographed below), is working with a campervan rental business: “We’ve done a thorough business review since lockdown to be ready to really exploit a potentially very short summer season, to get more out of the ‘shoulder’ period after that - and then to focus on future growth”.

The company signed up for Dorset Business Mentors new Business Resilience offer in March (launched to provide specific support to business owners through and beyond lock-down). Since then the finances have been helped with the furlough scheme, and they have revisited the need for a CBILS loan. With George’s help, they’ve done robust scenario planning and cash flow forecasts; and the loan may be needed to see them through a potential second wave of COVID infections.

This review included clarifying business goals, working on a company SWOT analysis, teasing out the best initiatives for future growth, and prioritising the directors’ ideas to identify what would give the best returns. “They are a talented team, but I’ve been able to help them become even more focused and disciplined”, says George. “They’ve tabulated the many threads of their marketing strategy, enabling them to focus on the website and social media channels. These will have the greatest impact.”

Meanwhile, mentor Hugh Malone has been working with a company in the same business space that converts and refurbishes camper vans for sale. “In the last few weeks their phones have not stopped ringing, with customers wanting fully converted and customized camper vans as they plan UK-based holidays for this and future years.” The company signed up for Dorset Business Mentors offer of free Business Resilience support (launched in March to provide specific support to business owners through and beyond lock-down).

“A big challenge for them was ensuing the supply chain did not break down. Delivery dates were delayed, and they had to over-order stock to be able to fulfil their contracts. They’ve received the Local Authority support grants, and negotiated a CBILS loan, but haven’t had to draw down on it yet.”

The business has continued to operate throughout the lockdown period, with some staff furloughed and others working part time. Hugh is optimistic: “They will come out of this pandemic reasonably well. They do high quality work and have a good reputation, but I’ve been trying to help the company become more profitable for a while now. We’ve analysed which type of work gives them good returns, so the mentoring conversations are focusing on how to improve conversion rates of that business stream. Plans are shaping up for how to really grow the business in the future.”

With more people likely to holiday in the UK, rather than overseas, Dorset Business Mentors’ outdoor leisure space clients may also be well positioned for post-pandemic growth. But there are still many challenges. The National Trust’s response to lockdown easing, phased re-openings, advance bookings and social distancing guidance, is being closely watched by many who may follow the same approach. Read about this here.

“A major challenge is that the food and drink outlets in these homes and gardens are an important part of both attracting visitors, and generating income”, says Hugh Malone. He is mentor to Simon Gudgeon whose business is Sculpture by the Lakes, a beautiful and extensive garden and lake venue which incorporates a gallery space, superb café and features around thirty of Simon’s own monumental sculptures around the grounds. “The pre-pandemic conversations have been focused on the garden’s café, and how to grow wedding and other special occasion events to generate more income. But the immediate issues have been utilising the café resource as a takeaway and supply service, and applying for emergency loans and grants.” (Sculpture by the Lakes is open and accepting visitor bookings through its website)

The whole sector is thinking through how to maintain social distancing – for example: booking car park slots in advance to control the flow of visitors, al-fresco dining while keeping tables apart at the cafes; and table service, rather than queuing for refreshments. In a recent Financial Times article, English Heritage was reported to have sent staff to all its 420 castles, old houses and ancient monuments armed with tape measures to arrange safe social distancing. It starts its phased re-opening on June 13th, with every site opened by August. Read details here.

The government guidance suggests that small weddings may be allowed from June, as a second step in its roadmap. Available to read here.. But so much depends on whether the changes result in a resurgence of cases.

Mentor, Shirley Hensher, has been working with a client hoping to grow its wedding and corporate event business at a family estate in Dorset. Short-term tenancy properties on the estate are being converted to grow the accommodation available for weddings, and Shirley has started to help them think through other ideas for business growth. Discussions have been on hold since lockdown, though the gardens have just reopened to visitors who have been reminded regularly on Facebook of what they have been missing.

Similarly, holiday parks and camping sites in Dorset and elsewhere are gearing up for this summer’s ‘new normal’. This might mean that they operate at about 30% capacity to keep visitors at safe distances, with special arrangements for bathroom and other facilities. Of course these constraints work to the advantage of our clients renting and selling camper vans, with their own facilities and the add-on benefits of associated outdoor kit.

It is interesting to hear from our mentors how varied their support to clients have been during this period of massive disruption to the economy and to individual businesses. Nudging them in the direction of government financial support has been helpful to some, while most have been working on management information and the all-important cash flow.

It is encouraging that some businesses are able to implement strategic changes to their business model, which were already in the pipeline. Though, of course, some clients have had to put those plans on hold, and just get through this period as best they can. Where that’s the case, mentors can keep them aware of the support available, and remind them of good budgeting practices and the continuing work they can do on systems and processes. And, all importantly, help them stay positive!

If you would like a greater understanding of how a mentor is matched to you and can help you at this time please do contact us. Our friendly team will be delighted to help and to answer your questions.

Sector Spotlight No. 2: Mentoring in action during C-19 (leisure, retail & tourism)