< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX What have businesses being busy doing in lockdown? By James Pinchbeck, Partner at Streets Chartered Accountants. Lockdown, and even the easing of lockdown, has created a real sense of isolation not just for individuals but also for businesses. Not being able to trade or operate as normal, through to remote working can and has created many a void or loss of connectivity. It is therefore easy to have a sense that not much has been going on. Certainly, this has not been the case for those who have been working hard to safeguard their business, along with the livelihoods of those dependent upon them. Now, as we enter what will be our fourth month of restricted activity, news or stories of what else businesses have been doing are starting to be talked about more. Let’s start with our restaurants – many popular places to eat have successfully adapted from serving diners to fulfilling takeaway orders. One or two have also looked to help those on the frontline, ensuring that they are looked after through providing meals, free to key workers and health care personnel. Others businesses and even local businesses working from home or still working from the workplace. Lockdown has undoubtedly seen an acceleration in our use of digital technology as more and more of us work from home and often try to juggle home learning at the same time. The highlight or otherwise, depending on your view, will be the perfusion of virtual meetings, over Zoom, MS Teams, or other online meeting platforms – others are available! Characteristically though, those businesses engaged in technology have in many cases been light of foot, fast, responsive, and entrepreneurial in developing and bringing to market new products in response to the situation and market conditions. Such innovations have included COVID-19 social distancing devices, viral guard clothing and a special alert and messaging service for care sector workers. Stories of such innovation, enterprise and resilience are certainly uplifting and an inspiration to us all. Over the coming months there will no doubt be many more to come as businesses and business leaders respond to the new normal. schools, in direct response to the situation, have looked to utilise equipment and resources for the production of much needed personal protective equipment and are now supplying COVID-19 secure supplies, including signage, screens and sanitising equipment to help us as we ease out of lockdown. With high street shops and other retailers closed to footfall, those without an online presence have in many cases and surprisingly quickly, put in place online platforms which include click and collect or home deliveries. For some though, lockdown has meant a loss of market, hopefully though only a temporary one, as measures introduced by the Government help to weather the storm. A number of businesses have, in true entrepreneurial spirit, responded to the situation by setting up new ventures invariably not linked to existing trade or activity with examples of new ventures including garden bars and pizza deliveries, through to the supply of treat boxes for staff and colleagues of 20-21.qxp_Layout 1 05/08/2020 11:32 Page 120-21.qxp_Layout 1 05/08/2020 11:32 Page 222 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PRINT AND PACKAGING SPOTLIGHT Thanks to advances in the Internet of Things (IoT) – wherein physical objects are collated together in an interconnected network – printing technology has taken a major leap forward. But by being networked in this way, printers can put businesses at risk of cyberattacks and have-a-go hackers. Hacks on smart printers exploit flaws in the device’s firmware allowing hackers to continuously force data to be written to their chips. This is a process which, if carried out enough times, can fry the chip, meaning that businesses not only have to contend with compromised security but front the cash for new hardware. This was able to occur because of issues with firmware, but printer hacks will likely only grow as IoT becomes even more widespread across the printing industry unless businesses put security measures into place. This is by no means a simple fix as protecting printers networked on IoT is a challenge because of their complexity. That shouldn’t serve to deter businesses, because printers are a gateway into a goldmine of information. Printers contain if not a lifetime memory, then certainly a memory of recent documents that have been sent to it. Think of everything you’ve printed over the last few months. It’s likely this contained highly sensitive financial information and confidential information about employees and clients. So this could present a massive breach in confidentiality and damage not just for the business being attacked, but that of its clients and customers. Quocirca, a global market insight and research firm, says that print manufacturers need to expand their security assessment and monitoring services, along with partnering with traditional IT security vendors, especially in the area of threat intelligence. The importance and pervasiveness of these security issues prove that the print industry is still very much alive, with printers remaining an importance fixture Whether printing documents or designs onto packaging, cybersecurity threats and environmental impact mist be taken into consideration. The power of 22-25.qxp_Layout 1 05/08/2020 11:34 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23 PRINT AND PACKAGING SPOTLIGHT across a myriad of different industries. Though there has been a definite push towards paperless offices over the last ten years, print has an important role to play for the foreseeable future, and that’s to say nothing of the printing required for packaged goods. An average office worker in the UK uses around 10,000 sheets of copy paper every year. So imagine how much an entire office is responsible for. According to renewable energy company, Good Energy, producing 100,000 sheets of paper produces a carbon footprint of 6,000 kilograms, but going paperless might not be as simple a solution to reducing this footprint as one might assume, with all digital activity – from sending an email to browsing online – coming with its own carbon footprint. The answer instead might lie in recyclable and sustainable print and packaging material. Simple solutions for offices include looking for papers that include pre-consumer recycled content and those responsibly sourced from sustainable tree plantations and well managed forests. Forest Stewardship Council approved papers may be made entirely from virgin wood – wood that is admittedly responsibly-sourced – but it’s still better to opt for a paper that contains recycled materials where possible. Recycled paper used to have a reputation for poor quality with a grainy look and feel, but now they’re indistinguishable. The cheapest options available aren’t likely to be among the best for the environment, but by the same rationale, the most expensive options can be misleading, so it’s always worth doing a bit of homework. Research can be carried out quickly and efficiently online, but most of the relevant information should be available on pack. Printing is ultimately more than the sum of its parts and requires a lot of different resources, all of which should be factored into any decision making when 24 Á © Shutterstock /KOKT ARO 22-25.qxp_Layout 1 05/08/2020 11:35 Page 224 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PRINT AND PACKAGING SPOTLIGHT business consider their carbon footprints. It’s more than the paper itself that impacts the environment, with the ink, coatings and chemicals that are used in the manufacture of certain papers and what is eventually printed on them. Eco- friendly printers often use vegetable- based ink such as those made from soybeans rather than the petroleum- based inks used in a lot of modern printers. Vegetable inks are gentler on the environment but that doesn’t come with the cost of compromised print quality. During the recycling process, the nature of these inks means that even bright images can be more easily removed from paper than traditional inks. The way in which printers are powered is also an important factor. Commercial printers used in an office setting will draw between 30 and 50 watts of energy on standby – that’s as much as an average domestic inkjet while printing. While in use, these commercial printers can use as much as between 300 and 500 watts of power. That may significantly increase for laser printers, depending on their design. But by powering, even in part, an office with renewable energy such as wind and solar, a company can continue to print at the same level whilst lessening the carbon footprint of the process. Of course, reduction is also an important environmental strategy to bear in mind and it’s worth thinking about that sage advice of thinking whether you really need to print any given document or e-mail. © Shutterstock /1000 W ords 22-25.qxp_Layout 1 05/08/2020 11:35 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25 PRINT AND PACKAGING SPOTLIGHT In the packaging industry, environmental issues are much more complex. Take, for example, pouch packages which are commonly found containing pet food, baby food and microwavable meals, among others. They aren’t easily recycled, but because of their light weight, durable and flexible nature, they offer a more environmentally-friendly option than many of their rigid counterparts on shelves, such as plastic tubs and tins. As the industry advances, and the environmental agenda continues to gain traction, advances and innovations in the recyclability of these packaging materials will continue. For recyclable packaging that doesn’t compromise product safety and ensuring that manufacturers stay in line with ever stringent labelling law and safety requirements, there’s paper and paper board. In 2018, this segment held a 55.1 per cent share of the sustainable packaging market and it’s easy to see why it’s such a popular option, thanks to its relatively low cost, ease of recycling in domestic and commercial settings, its versatility, ease of transportation and compatibility with printers. Yet in highly competitive markets – such as food-to-go – products have mere seconds to resonate with busy consumers and that often means showing off the product they’ll be purchasing. A transparent plastic film is part and parcel of a boxed wrap or sandwich, yet this means that these packages are always mixed material and thus difficult to recycle. Rather than removing this important selling feature, manufacturers and supermarkets are instead creating packages where the cardboard can be more easily separated from the film. A simple solution such as a peelable tab can allow consumers to separate both components with relative ease, the better for both parts to be recycled. Whether it’s for sending out correspondence or producing labelling on food packaging, the printing industry remains an important and profitable market. The rise in ever-smarter printing solutions means that companies can’t afford to ignore digital security and must safeguard themselves against cybersecurity threats. At the same time, the environmental impact and the materials involved in the printing process cannot be ignored. With sustainable paper, inks and coatings available alongside renewable energy and ever more energy efficient hardware, companies can create a more efficient, streamline and environmentally-friendly print process. While adoption of more sustainable and easier to recycle materials can help to shrink a packaging company’s carbon footprint. © Shutterstock /Michele Perbellini 22-25.qxp_Layout 1 05/08/2020 11:35 Page 426 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PUBLIC RELATIONS Chances are, when you are looking to raise some media profile in either the ‘traditional’ press or across social media, your thoughts will have strayed to the potential of a celebrity tie-in or partnership. It seems to make sense, they have huge profiles, you don’t, so you shell out for the tempting shortcut, piggyback on their brand and sail off into the media sunset together. It just makes things so much easier…doesn’t it? Well, tell that to Gillette razors who a few years back signed up the BIGGEST names in sport to front their campaign. Roger Federer, the nicest man on the tennis circuit, utterly charming and arguably the greatest player of all time. A very smooth operator on court and in life. Spoiler alert...he’s my sporting icon! Thierry Henry, already on the way to becoming a legend and famous for his smooth style of play and cool, calm demeanour. Effortless in his approach to the game but utterly devastating. Classically uber-cool French flair. Tiger Woods, at the time, probably the BIGGEST sporting brand on the planet. Taking the game of golf to new levels and almost changing the way many people played the game. As inspiration to millions and opening the game up to an entirely new market. Then it all started to go a little bit wrong, except for with Roger. Obviously! Gillette signed up the talented trio in response to losing ‘Goldenballs’ himself David Beckham. OK, you now have three big brands to manage, let alone their egos but the reach is HUGE! So, you’re feeling pretty confident if you are Gillette’s head of brand. Break out the balm, we’re in for a smooth ride They are genuinely the outstanding players of their generation, they are all charming, clean-cut chaps with a loyal following and their own successful brands. It can only get better for us all guys – break out the balm, it’s going to be a smooth ride. Then...it all started to unravel rather quickly. Henry cheated on the world stage for France vs Ireland and as for Tiger, well, Celebrity endorsements By Greg Simpson, founder of Press for Attention PR and Enterprise Nation Champion for Nottingham. - a close shave 26-27.qxp_Layout 1 05/08/2020 11:36 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 27 PUBLIC RELATIONS let’s just say he was working through more than a few issues that were causing his game and his life to spiral out of control. It was proof once again of the perils (as well as the pluses) of associating your brand with celebrities, or with anyone for that matter. Basically, people make mistakes. No matter how clean their image when they signed the contract you never know what is around the corner. Even false allegations can damage your brand. I cannot fault Gillette for hiring the three amigos. They were the perfect match and to be honest, I’m not sure that the indiscretions of Mr Henry and Mr Woods even did long-term damage. Although...one can probably plot the rise of the beard as fashion staple v clean-shaven from here! It wasn’t a MASSIVE problem for Gillette as the audience they sought to influence was primarily concerned with the skills of these super sportsmen, their image was secondary. Whisper it quietly but at the time, there was probably a small conclave that found Tiger Woods MORE appealing as either a rogue or at least a human being compared to his somewhat robotic persona of the previous decade. However, note how times have changed and Gillette’s new approach to PR, now they are now all about the more ‘modern’ man and tackling ‘toxic masculinity’. Interesting. PS you might think “well, proof that there’s no such thing as bad publicity…” don’t even get me started on that! 26-27.qxp_Layout 1 05/08/2020 11:36 Page 228 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk BUSINESS SERVICES As companies look to optimise core business functions, business services organisations, from accounting to IT to legal services, remain essential, helping improve operations, make firms more productive, and keep companies functioning. As a firm grows, business owners often look to business service providers instead of completing tasks in house to save vital time. The business services sector itself, employing 3.3 million in the UK, is experiencing its own challenges, and has certainly not escaped the impact of COVID-19 with optimism plummeting in the sector. According to the CBI’s latest available ‘Service Sector Survey’ for the three months to May, optimism among business and professional services fell at the fastest pace since the financial crisis, following an uptick in sentiment in the previous quarter. Business volumes in the sector dropped at the quickest pace since February 2009, and looking ahead companies remain pessimistic about growth, with the CBI noting that in the quarter following its survey, firms expected the decline in business volumes to accelerate. The sector has also seen prices drop at the fastest pace since February 2012. The survey indicates that business and professional services firms have been taking advantage of the job retention scheme, beneficially impacting business costs, with costs per person decreasing at the most severe pace in eleven years. Furthermore coronavirus has seen a sharp drop in headcount, with employment falling at the most rapid rate since 2010, which is expected to pick up pace. According to the CBI, almost half of services firms reported making temporary layoffs, and twenty per cent had made permanent layoffs. Sixty-three per cent of firms meanwhile put in place remote working for most staff. The quarter also saw investment intentions deteriorate, with organisations looking to cut back on all areas of investment in the year ahead at the quickest pace since the financial crisis, whether that be training, buildings or IT, though the latter is expected to be cut to a smaller degree. Firms across the vast business services sector are facing various difficulties depending on the sub-sector in which they operate. Recruiters for instance are dealing with downsized workforces, new hires being paused and a shift to conducting digital interviews, while their ability to return to normal is dependent on the sectors they support and how quickly they return to recruiting, with shorter term contracts expected over full time. Simultaneously accountants are handling issues including client fears, constant fast changing information, and a subsequent struggle to find the ideal way to communicate with clients, such as video meetings and webinars or regular email updates. What the pandemic has certainly highlighted is the need for business services, generally, to embrace digitalisation for the changed post- COVID world. Alev Williams, head of global business services at KPMG, has stated how it is as though three years of digital transformation have been condensed into the past few months. To digitally enable business services firms for the new reality, as noted by Williams, vision and purpose must be realigned with business priorities. There is now a chance to rethink how business services help companies navigate in a quick changing environment. A customer first approach is key here, to ensure business services continue to propel business performance. Moreover, coronavirus has shone a light on the gaps in the capabilities of business services, with those performing best holding user- experience-led design and advanced data analytics. In implementing digital transformation, business services firms should ensure to pinpoint the best opportunities that will offer a return on digital investment. difficulties In the wake of coronavirus, the business services sector is facing fresh challenges, plunging optimism and a heightened need for digitalisation. 30 Á Dealing with 28-31.qxp_Layout 1 05/08/2020 11:39 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29 BUSINESS SERVICES © Shutterstock /Arthur zhi 28-31.qxp_Layout 1 05/08/2020 11:39 Page 2Next >