The government recently announced its Pride in Place Strategy, which will see up to £5 billion of investment placed into 339 local communities across the UK that it says are “overlooked”.
This includes parts of Leicester, Nottingham, Lincoln, Derby and many more cities, as the government looks to boost our nation’s high streets, parks and public spaces.
It has been welcomed by local authorities that are set to benefit, with some councils calling it a “game-changer” for their local communities, and it’s also expected to provide a boost for businesses in the impacted areas.
The programme has three main objectives:
This investment is expected to increase footfall and community engagement, which will also benefit local cafes, retail shops and tradespeople.
So, with busier and more prosperous times potentially on the way for retail business owners, what can they do to prepare for and make the most of this cash injection?
A great way to maximise your retail business’ potential from the funding is to engage early by attending council meetings and consultations, having your say where the investments should be made.
As the purse strings for this funding will be held directly by local authorities, building a relationship with them in addition to becoming familiar with local council tender websites will put you front and centre for any upcoming contracts. Here you can increase your visibility and boost sales by supplying materials and offering services for the community projects.
Most importantly, though, the Pride in Place funding offers the opportunity to grow alongside your community. Early reactions from local people in the areas set to receive the funding have shown that they want their high streets to be revitalised, with more independent shops and the return of traditional markets. This could be the motivation you needed to open your first store, expand into a new location or even extend your product range to meet the increased local demand.
If the Pride of Place funding is in your area, and leads to growth for your retail business, you’ll need to start thinking about future-proofing. This might include pricing, stock control and cost reduction strategies that will enable you to maximise profitability.
Having a strong, resilient financial management plan will help you prepare for growth and build a profitable business. Financial management plans should look at cashflow management, of which budgeting and forecasting play an important role. Do you expect or have peaks and troughs throughout the year when it comes to sales? If so, budgeting and forecasting can help you to manage finances across the year and ensure you have the reserves to cope during quieter periods.
Business growth can also change your tax requirements, so planning is a critical aspect of successfully growing your business. For example, increased turnover may take your business over the VAT registration threshold, and a rise in profits may mean you’re subject to higher corporation tax rates. Having a reliable adviser who understands the complexities of VAT, corporation tax rate tiers and eligibility criteria for ‘Marginal Relief’ will ensure you get the most out of your business growth.
If your growth includes opening a new retail unit, or expanding your product range, you’ll likely need a bigger team to help you meet demand. This will increase your responsibilities when it comes to payroll processing, including salaries, tax deductions, pension contributions and compliance with employment laws - which can all prove to be costly if you fail to comply.
As business picks up, your retail accounting requirements will naturally increase, and the time you have to complete these essential tasks will ultimately narrow. To give you more time to focus on building your business, you might want to consider outsourcing some of the more time-intensive operations.
For example, utilising an accountant to help with bookkeeping can give a more accurate view of your real-time financial position, which can aid decision-making and cash flow management. Getting the right support can give you more flexibility to do what you do best and positively contribute to the local community, creating the pride the funding was intending to generate.
To find out more about how Duncan & Toplis can support retail businesses, please contact us.
