The Recovery Loan Scheme is a unique opportunity to overcome growth constraints
The Government’s new Recovery Loan Scheme, which will replace the previous Coronavirus Business Loan Interruption Schemes (CBILS), will give businesses an opportunity to secure credit on favourable terms to drive the economic recovery and help businesses invest and grow. The new scheme will offer up to £10m on similar terms to the CBILS and will be administered through banks and accredited lenders.
The four previous schemes, CBILS, Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) and Future Fund Scheme have mitigated the damage to the economy, but they have served their purpose of helping businesses survive. The Recovery Loan Scheme is designed to give businesses the opportunity to invest and build for the future.
One of our core beliefs at Where Now Consulting is adopting the ‘Growth Mindset’. This is challenging in times like these, but successful businesses constantly seek out ways to build markets and customers for the future.
As business leaders, opportunities to create a platform for growth are all around us. From the basics of selling more to your existing customers through to entering new markets, acquiring a business, or launching a new online sales channel.
This article focuses on three key constraints on growth:
- Availability of finance
- Market size and potential.
- Management capability
Availability of finance
A lack of finance will constrain even the best laid growth plans. However, with the generous terms offered by the government guaranteed loans and low interest rates, a lack of finance will not be the biggest constraint for most businesses. In fact, it creates a strong incentive to seek finance and funds now. The Recovery Loan Scheme will have a similar application process as CBILS and having a good business plan will be key to accessing this scheme. Where Now Consulting can help businesses develop financial and operational forecasts, develop funding structures, and facilitate discussions and negotiations with banks and other funders to ensure you have access to finance and funding.
Market size & market reach
Many businesses have seen their usual route to market disrupted or shutdown, and have had to reach customers in new ways and even find new customers. There have been many great examples of companies finding ways to retain existing markets whilst at the same time seeking new opportunities and markets during the pandemic, from restaurants focusing on deliveries and creating cook at home meals, to retail stores embracing online platforms and focusing on customer experience. A growth mindset forces you to look at opportunities and to explore ways to increase existing market penetration or to look for new market opportunities. Tools and services such as Where Now Consulting’s Sales and Channel Assessment package are designed to help companies seek out opportunities from growth.
Management capabilities
Finally, the pandemic has accelerated many trends that were growing before 2020, how and where we work, the growth of omnichannel, Brexit, increased automation, and changing consumer patterns. The ability of businesses to not only meet these challenges, but also find opportunities to position themselves for growth has required leadership teams to adapt and change. The capability of leadership teams is therefore a key factor in the future success of failure of business. Tools such as the Where Now Consulting Business Diagnostic Tool can help by businesses to identify areas for development.
With the help of the government support businesses have shown remarkable resilience to weather the economic crisis that came along with the COVID-19 pandemic. Indeed, many businesses have found ways to thrive and prosper as they sought out opportunities to grow. Now as consumer and business confidence return, the Recovery Loan Scheme will provide a great opportunity for businesses to secure the necessary finance to allow them to focus on overcoming their growth constraints and to build for the future.
Where Now Consulting helped its clients secure c£2m of loan funding through the CBIL’s scheme. With the launch of the new Recovery Loan Scheme we are looking forward to helping our existing, and new, clients develop and implement plans for growth and to secure the necessary funding for the future.
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