Industry Bulletin – Opportunities and  Risks in the UK Construction Industry

Download the report here.

The instinct to survive always trumps the need to adapt, at least in the first iteration. This is a primal and ungovernable force, and is as prevalent in corporations as it is in human nature. Notwithstanding, the widespread return to business in June, presents an opportunity for the industry to re-set our ambition; an opportunity to re-build in the image of the businesses we would like to be, ‘future ready’.

This Enterprise Ireland report has set out to identify and analyse key opportunities and risks in the UK Construction Industry as we emerge from the strictest lockdown measures in modern times.

Inside Innovation Show – Hibergene

Inside Innovation brings you the stories of Ireland’s leading innovators and changemakers. Across the series we will cover a whole range of topics from innovating in a crisis, to looking at the future of many business areas. We go behind the stories, to understand what drives these innovators and what the innovation success factors are, from capability building, to culture and leadership.

The podcast is hosted by innovation expert Aidan McCullen.

The second episode is part of a series ‘Innovating in a Crisis’. In a rapid response to Covid-19, Hibergene Diagnostics launched a new Covid-19 test, that delivers positive results in just 30 minutes. Gary Keating, CTO of Hibergene talks capability building, agility, speed and collaboration, all important factors in the company’s success in innovation.

Patrick Torrekens, Head of the Enterprise Ireland BeNeLux

Market Watch – Benelux

 

Overview

  • The BeNeLux countries (Netherlands, Belgium and Luxembourg) are working hard to return to normal business practise.

  • Health and safety remain a prime concern so remote working and virtual meetings will continue to be in place for some time to come.

  • Continued communication with clients is vital.

  • Opportunities are available in the biopharma, digital connectivity, and biotech sectors.

Like the rest of Europe, the BeNeLux countries are working hard to return to some level of normality after Covid-19. And Patrick Torrekens, Head of the Enterprise Ireland BeNeLux team, says despite the fact that remote working remains in place, business is beginning to pick up in the region.

“Just like many people across the world, I have been working from home for the past few months and here in the BeNeLux countries, remote working, particularly for the services industry, is still the recommended norm as part of the three countries’ re-entry strategy,” he says.

“However, more and more production facilities, construction sites, engineering plants and office buildings are gearing towards full capacity and the ports of Antwerp and Rotterdam are fully operational with authorities doing everything to maintain the flow of goods in and out of the three countries.”

Torrekens says health and safety remain the prime concern and the necessary measures have been taken to ensure social distancing on the work floor, on public transport and in public places. While industry heads and Government are doing everything they can to get everything up and running once more.

“Things are not back to normal as yet, but the Dutch, Belgians and Luxemburgish, are keen to see business pick up again as quickly as possible,” he says. “When we are talking to buyers in our markets, we still hear that their focus is on adapting to the new reality on making their supply chain, and other critical processes, Covid compliant.

“So any solution which helps them to achieve Covid compliance gets their full attention and that is why it’s so important to stay closely connected to your clients as they are also turning to their existing client base for inspiration and support at the moment. But BeNeLux decision makers are not currently looking at new investment projects so expect a delay in the sales cycle, be patient and stay connected with your in-market contacts.”

But despite the delay in returning to normal, he says business is definitely moving in certain sectors and some markets remain buoyant.

“There are opportunities and exceptions to be found, particularly in the sectors of high relevance for trade with Ireland,” says Torrekens. “The BeNeLux region is a hot spot for pharma and biotech research and innovation and it is expected that multinationals such as Johnson and Johnson, with research facilities in the Antwerp region, will invest in new laboratories for vaccine production and other virus related research.

“So it is encouraging to see that some Irish companies are already preparing to play a part in this by strengthening their teams in markets.”

The past few months have clearly pointed at the strategic need for digital infrastructure and the Netherlands, in particular, is a frontrunner in digital connectivity and continues to invest in its infrastructure.

The Enterprise Ireland regional manager says communication is vital during these strange times, so Irish companies must do all they can to stay in touch with their clients.

“An interesting fact to mention is that the Netherlands has witnessed the highest global growth rate of virtual meetings held over digital platforms in the past weeks,” he says.
“So rest assured that if your contacts are not available for face to face meetings, they are definitely open, and accustomed, to online sessions. And please remember that the travel restrictions which are currently in place in the Netherlands, Belgium and Luxemburg should not prevent you from reaching out to existing clients and new prospects.

“Finally Belgians and Dutch and Luxemburgish people have massively turned to online commerce and businesses have adapted their sales channels to accommodate this. This has given an extra boost to businesses in IT, and professional service but also in transport and logistics.

“Ultimately, your solution will stand out if you have a strong value proposition which gives you a good chance to win more business in this region. And our teams stand ready to support you with advice and hands on support, so do get in touch, virtually for now, but hopefully face to face soon.”

Get key insights on doing business in BeNeLux and the supports available from Enterprise Ireland.

Padraig Neylon, CEO AddJust

AddJust – Creating solutions for the construction sector

“Getting the Competitive Start Fund gave AddJust the validation needed to support our growth trajectory.

Pádraig Neylon, Co-Founder and CEO, AddJust

1. Describe your business

AddJust is a contract and financial management platform helping the construction industry to streamline its communications, payments, budget management and change requests.

 

2. How did getting the Competitive Start Fund (CSF) progress your business?

Being backed by Enterprise Ireland’s CSF gave AddJust the validation that helped us when introducing our service to public sector and established private sector clients.

 

3. What are your top tips to other businesses interested in applying for the CSF?

My advice would be to carefully plan how the CSF investment will progress your business and ensure you get to the next stage.

 

4. What are the next steps for AddJust?

The next step for AddJust is accelerating our growth across public sector and large scale clients.

 

Enterprise Ireland’s Competitive Start Fund – All Sectors opens on 7th July 2020 – See other founders discuss CSF or Click here to apply

     

    Ciara O'Toole, Country Manager, Italy

    Market Watch – Italy

    Overview

    • Italy was severely impacted by Covid-19 and had no protocol to follow as it was the first to experience a total lockdown.

    • It has started to recover and has begun to open up its borders

    • Construction sites are open and medical device companies are in production mode.

    • Opportunities are also available in the health, ICT agriculture and energy sectors.

      Europe and the rest of the world watched in horror as Italy succumbed to the ravages of Covid-19 and tried to figure out a way to keep its citizens safe and its economy from collapse.

      And while the effects of the pandemic definitely left its mark on the country, it has started to open up and the recovery plan has been put into action.

      Country manager, Ciara O’Toole says it was a very difficult period for Italy, but the situation now seems to be under control and while there are still some challenges ahead, plans are underway to open up the country in stages.

      “Italy was the original global epicentre of the pandemic and it quickly became a country of unwelcome firsts,” she says. “As Italians saw the healthcare emergency escalate, they also had to process the shock of being the first country in the world to be put on a full lockdown.

      “There was no frame of reference to follow so Italy quickly became the global frame of reference. However, after a couple of months of hardship, it is now preparing to open its borders to the rest of Europe and from June 3rd, entry into Europe from the countries of the European Union, including countries in the Schengen region and Switzerland, will be permissible without a two week quarantine.

      “And the plan is to open borders fully to global travel from 15th of June with flight and medical protocols in place.”

      O’Toole, who is responsible for leading the Milan based Enterprise Ireland team to support sales activities for Irish companies in Italy, says although the country is still working within in some restrictions, it is beginning to open up and there are opportunities to be had.

      “Remote working will remain in place in the country for the foreseeable future across sectors which have this possibility,” she says. “But with respect to logistics, the supply chain to Italy was not severely interrupted.”

      “Construction sites have been open since early May and medical device companies are back to work. Tourism is also starting to open up, including in the hard hit north and airlines are returning to flight with medical protocols being adapted by EU airlines.”

      “Also the ecommerce sector is extremely active and there are many exciting opportunities on the horizon in various sectors including construction, health, ICT agriculture and energy.”

      Like the rest of the world, remote working is still on the agenda for the foreseeable future, but O’Toole says there is plenty of business happening in Italy and things will continue to improve in the coming weeks and months.

      “Virtual client meetings are the modus operandi at the moment which will ensure progression of business,” she says. “But we have had many positive news stories in recent weeks from client companies.”

      “Italy is a world leader in the construction of major infrastructures, and it is home to leading aerospace technologies as well as being a leading producer in many significant global sectors.”

      “So, although the country has endured a lot of trauma in the last few months, it is a resilient nation with an indomitable spirit and while commerce has undoubtedly been interrupted, there is a real determination to get back to business.”

      Get key insights on doing business in Italy and the supports available from Enterprise Ireland.

      Inside Innovation Show – Combilift

      Inside Innovation brings you the stories of Ireland’s leading innovators and changemakers. Across the series we will cover a whole range of topics from innovating in a crisis, to looking at the future of many business areas. We go behind the stories, to understand what drives these innovators and what the innovation success factors are, from capability building, to culture and leadership.

      The podcast is hosted by innovation expert Aidan McCullen.

      Episode 1 – Interview with Martin McVicar, CEO & Founder of Combilift

      The first episode is part of a series ‘Innovating in a Crisis’. An Irish innovator who innovated in the Covid-19 crisis is CEO and Founder of Combilift, Martin McVicar. The Irish engineering firm leveraged the innovation skills that make it a world leader in forklift trucks, to solve a global shortage of the ventilators required to fight Covid-19.

      Resetting your business model

      Resetting your business model in response to Covid-19

      In preparing for tomorrow’s world, businesses need to reset their business model to remain relevant to their customers in the new environment

      The Covid-19 pandemic has changed the world and transformed the environment and operating rules for business. Last year’s winning formulas have become failed propositions almost overnight, and many of yesterday’s compelling products and services are obsolete in the context of tomorrow’s needs.

      This requires businesses to take a long, hard look at their business models in order to remain relevant to their customers in the new environment. They will need to reassess what they sell, who they sell it to, and how they make money from that. They will also have to examine why people buy from them and how that translates into profitability.

      According to Business Financial Consultant Brendan Binchy, companies need to focus on four key areas when seeking to reset their business models:

      • Their current product offering and how can it be developed, changed, or delivered differently
      • Who their customers will be in future, both current and new, and if there is a need to drop some existing ones
      • The reasons customers buy from them, their new value proposition, and how they will do something unique; and
      • How they will make money – lower input costs, production efficiencies, premium price or volume increases.

      When looking at the product offering, Binchy advises companies to ask the hard questions. “Have you got any inherent future proofing protection for your product or service? What is unique about it? What is its lifecycle in the market? How much of your revenue is dependent on it? What are most profitable products?”

      The answers to these questions will help decide what products to retain or drop, as well as inform new product development efforts.

      Customers should be subject to a similar analysis, he advises. “Who uses your products? What are their demographics? Who are your most profitable customers? Where are they? What defines your ideal customer and where can you find more of them? Why are you still dealing with unprofitable customers?”

      This will assist in defining target customers. “Businesses should categorise customers into groups according to their profitability and different attributes, and then select which ones they want to deal with in future. This may lead them to stop dealing with some of them. Companies shouldn’t be afraid to fire customers who don’t value what you do.”

      The next step is to establish why these customers will buy from the business. “Go out and ask your customers,” Binchy advises. “Bring them in and talk to them about it. Find out the defining attributes of your most important customers and find ways of meeting their expectations. This will help you pick the right people to work for; people who value what you do. If a multinational has been buying from you for the past 10 years, you must be doing something right. Find out what that is and build on it.”

      Making money is the other and perhaps most critically important part of the jigsaw. This will require the business to look at the key business model drivers of products and services, marketing and sales, and finance, in terms of profitability, cashflow and return on investment. “They are the what, the who and the how of the business model,” Binchy explains. 

      “The enablers are your people and systems and processes that support the business. You can’t grow a business without all three drivers, being robust and in balance with each other. You can have great customers and products, but you won’t have a business if you’re not making money.” says Binchy

      An analysis of those drivers, along with the enablers, will give you a clear view of the revenue and cost bases of the business, and will help identify how the pathway to profitability can be bridged. “A business might look at reducing materials, labour or other operational costs. It can also look at production efficiencies or seek to increase prices if it can be positioned in a premium segment of the market.”

      The remaining question is how to finance the transition between the old and the reset business models. “The money and support are there to help companies bridge between the two. We just have to hope the transition period between them is going to be as short as possible,” Binchy adds. “The Enterprise Ireland Covid-19 Business Financial Planning Grant is there to help businesses start the journey. It offers a 100% grant up to the value of €5,000 to fund the cost of a financial consultant to prepare a financial plan that shows exactly how the company intends to reset and adapt its business model as it emerges from lockdown. The Lean Business Continuity scheme offers vouchers worth up to €2,500 to fund the cost of training and advisory services.”

      He points to the €450 million Covid-19 Working Capital Loan scheme and the €200 million Future Growth Loan Scheme available through the Strategic Banking Corporation of Ireland as potential sources of loan finance for companies.

      In addition, there are the Enterprise Ireland Sustaining Enterprise Funds which offer funding up to €800,000 to fund the implementation of stabilisation and viability plans. Smaller businesses can also apply for funding of up to €25,000 or €50,000, depending on the size of the business.

      Both schemes feature repayment moratoriums for the first three years, a very important consideration according to Binchy. “That is very attractive when the company doesn’t have repayment capacity for the moment. They can’t go to the banks if they are in that position. Businesses have to dance very carefully when seeking funding, and these schemes certainly help with that.”

      Learn more about the Enterprise Ireland supports available in our Accessing Liquidity & Managing Cashflow webinar

      Adapting your business model

      Adapting your business operations in response to Covid-19

      As businesses reset and recover, every aspect of a business’s operations should be examined and analysed to identify efficiencies and better ways of doing things

      Having identified a pathway out of the crisis, made required changes to the business model and developed a cash conservation strategy, businesses need to turn their attention to operational matters if they are to adapt quickly to the changed environment.

      Every aspect of a business’s operations should be examined and analysed to identify efficiencies, better ways of doing things, or things which shouldn’t be done at all. Companies around the world are already engaged in this process and those that delay will find themselves at a competitive disadvantage, according to Business Transition Consultant Brendan Binchy.

      He points to a survey of 3,000 CEOs carried out by the Economist Intelligence Unit which found that almost all of them are going to implement operational agility measures as a result of the Covid-19 crisis. “That train has already left the station as far as they are concerned,” he says. “Every company should take a quick and hard look through the whole functional side of its business.”

      He offers a checklist of the five core functional areas of the business which require attention – products and services, marketing and sales, finance, people, and systems and processes.

      “They need to take a walk through that checklist and identify areas where they can improve effectiveness and efficiency,” he adds. “For example, when looking at the operational model they should ask if it is possible to morph to online, or if product and service delivery modes can be changed.”

      On products and services, he advises careful management of stock levels as a starting point. 

      “New product development should also be reviewed, you have to look at the cost to bring it to market and how quickly it can generate new revenues streams or if you need to do it at all at the moment.” says Binchy

      Similarly, expansion plans should be subject to reappraisal and put on hold if not justified by a clear payback. Supplier relationships are also important, and discussions should be held with a view to reducing costs and achieving efficiencies.

      “With international supply chains, some companies are moving away from “just in time” policies to making sure there is “enough in time” to meet demand,” Binchy adds. “There is risk associated with internationalisation, and companies could consider moving to a portfolio of multiple suppliers to deal with this.”

      Other considerations relate to the production process itself. “If the company is starting up again, what needs to happen in the production flow? Does everyone need protective screening measures? Will you sub-contract some things out which had been done internally?”

      Turning to marketing and sales, he recommends a selective appraisal of investment, but with targeted reductions based on return on investment rather than wholesale cuts which could cut off the market cycle.

      Another area to look at is pricing strategy and the potential impact of discounting. Care should be taken to avoid a situation where discounts lead to volume increases which in turn may cause problems in the production process and perhaps divert resources from more profitable lines. It’s a classic case of weighing up the price volume trade off.

      The finance function should become more fully integrated into the management of the business, he advises. “The finance team should be a core part of the overall management team. This means you will know all the things you need to know about the business and its finances as they happen, rather than find out about them in a report two or three months later.”

      Binchy says communication is vital when dealing with people in your business. “You have to remember that you’re dealing with human beings and you should support them in the same way as you support your customers. When you are faced with implementing inevitable pay rationalisation measures you should segment your employees carefully to ensure that those people who are adding most value are rewarded appropriately.”

      The final item on the checklist is systems and processes. Along with people, these are the underlying enablers of the business and every element should be assessed to ensure it is delivering value to the business either in terms of revenue generation, service improvement, or efficiency and productivity gains. Regardless of how good a process can appear there is always a better way, Binchy notes.

      Businesses seeking to adapt and modify their operations to meet the changed environment created in the wake of the Covid-19 pandemic can avail of support in the form of Enterprise Ireland Lean Business Continuity Voucher and the Covid-19 Business Financial Planning Grant.

      The Financial Planning Grant is worth up to €5,000 to pay up to 100% of the costs of an approved financial  consultant to work with the company on the development of a business and financial  plan, while the Lean Business Continuity Voucher is worth €2,500 and can be used for training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate during the current period.

      Where additional finance is required to fund new initiatives Binchy points to the Enterprise Ireland Sustaining Enterprise Fund which offers funding of up to €800,000 to eligible companies. There is also a fund for smaller companies which offers funding of up to €25,000 and €50,000 depending on the size of the business.

      Learn more about the Enterprise Ireland supports available in our Accessing Liquidity & Managing Cashflow webinar

      Market Watch – Spain

      Overview

      • Spain has begun to officially open up again, but some restrictions will remain in place for the coming weeks.

      • Challenges around transportation and quarantine still exist, but supply chains are moving.

      • Irish businesses should continue to communicate with their existing clients as the country is very much open for business.

      Like the rest of Europe, Spain was badly impacted by the global pandemic but Alberto Cisterna from the Enterprise Ireland office in Madrid, says restrictions have begun to be lifted and businesses are easing towards a new normality.

      “The Spanish healthcare system was overwhelmed by Covid-19 and Spain was one of the first countries to enact a total lockdown,” he says. “But we are very happy to see that the number of cases has fallen sharply, and this has enabled the government to start easing some of the measures which have been in place since March.

      “This plan for a Transition Towards a New Normality was announced at the end of April and consists of four phases which are intended to relax the restrictions in a gradual, flexible and adaptive way. And although it started officially on the 4th of May and will last for eight weeks until the end of June, we are still in a state of alarm.”

       

      Challenges and opportunities

      Cisterna says while businesses in Spain are getting back to normal, some challenges do lie head.

      “Firstly the challenge exists regarding transportation options and border restrictions as Spain’s air, land and sea borders have been closed for entry from May 15th and remain so – with limited exceptions,” he says. “And until the 30th of June, passengers arriving in Spain from other countries will be required to quarantine in their place of accommodation for the first 14 days immediately following their arrival.

      “It is also important to highlight the fact that the supply chain in the country is fully operational as these measures do not apply to the transport of goods.” Alberto Cisterna, country manager Spain and Portugal

      “And also teleworking, or video conferencing, is still the main priority for businesses across the country in response to the pandemic and this will continue to be the same for at least one more month.”

      But despite the hurdles which need to be overcome, he is quick to point out that there are also some opportunities to be had, providing clients continue to engage with their counterparts in Spain.

      “I would like to remind our client companies that Enterprise Ireland in Madrid is open for business and we are conducting as many engagements as possible,” he says. “In fact we are very happy to say that we have seen some deals confirmed even during the worst phase of the pandemic.

      “One important recommendation for our client companies is to stay in touch or to reconnect with their agents, distributors or business partners and also to plan ahead for the Covid-19 post new normality – it really is very important to keep communicating.

      “In addition, I would like to remind people that Spain is the fourth biggest economy in the Eurozone, and it represents a great opportunity because of its market size, particularly in sectors such as ICT or digital technologies.

      “So my key message today is that we are looking forward to continue working with our Irish client companies as Spain is definitely open for business – and as sale cycles in this country have historically been very long, let’s use this time to plan for the future as Spain is a big economy with a lot more room for new opportunities.”

       

      Get key insights on doing business in Spain and the supports available from Enterprise Ireland.

      businesswoman

      Covid-19 Business Supports

      From 5,000 to 800,000, Enterprise Ireland has a range of funding supports to help you recover

      Enterprise Ireland has put in place a suite of funding supports to help Irish companies adjust to the immediate and future challenges presented by the Covid-19 pandemic. These supports are designed to help businesses stabilise and adapt to the evolving situation, in preparation for getting back on the road to recovery.

       

      The Business Financial Planning Grant

      The Covid-19 Business Financial Planning Grant is designed to help companies develop a robust financial plan and secure their viability in the short to medium term. The grant, worth up to €5,000, can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant to prepare a plan which can encompass the documentation required to support applications for finance from banks or other providers such as Enterprise Ireland.

      The plan will establish the company’s current financial position; examine the negative Covid-19 impacts on the business; establish where the company wants to be in three years’ time; identify a series of actions to be undertaken by the company to mitigate the effects of the current crisis; provide a framework to manage costs and identify funding gaps; and enable management to identify the finance required to sustain the business through the crisis and beyond.

      The plan should also include a complete set of financial forecasts for three years.

      Eligibility: The grant is open to all Enterprise Ireland clients as well as companies employing 10 or more in the manufacturing and internationally traded services sectors.

      How to apply: Contact our  Covid-19 Business Response Unit at businessresponse@enterprise-ireland.com or your Enterprise Ireland Development Advisor.

       

      Sustaining Enterprise Fund – funding of up to €800,000

      Aimed at giving manufacturing and internationally traded businesses the liquidity and cash resources required to make it through the Covid-19 crisis, the Sustaining Enterprise Fund offers funding of up to €800,000 to eligible companies.

      The purpose of the funding is to support the implementation of a Sustaining Enterprise Project Plan which will lead to the eventual stabilisation of the business and a return to viability. The Sustaining Enterprise Project Plan must outline the company’s liquidity needs and explain how the funding will remedy its immediate problems.

      Businesses can use the Covid-19 Business Financial Planning Grant to pay for the development of the Sustaining Enterprise Project Plan.

      Subject to an annual administration fee of 4% (with 0% fee for the first six months) there is a three-year grace period for repayments on funding, which must be repaid in full by the end of year 5, and the achievement of the objectives originally set by the company

      Eligibility: To be eligible for the fund, companies must have experienced a reduction in actual or projected turnover or profit of 15% or more, and/or a significant increase in costs as a result of the Covid-19 outbreak.

      In addition, eligible applicants must be unable to raise sufficient capital from the market (or other sources) to meet the funding needs of a Sustaining Enterprise Project Plan.

      Companies are not eligible if they were already in financial difficulty on 31 December 2019 or were experiencing difficulties for reasons not related to Covid-19.

      How to apply: For further information, contact your Enterprise Ireland Development Advisor or the Covid-19 Business Response Unit at businessresponse@enterprise-ireland.com

       

      Sustaining Enterprise Fund – Small enterprise

      Similar to the main Sustaining Enterprise Fund, this scheme provides financial assistance to smaller manufacturing or internationally traded services companies for a three to six-month period to support business continuity. Eligibility criteria are the same as for the Sustaining Enterprise Fund, and the assistance is to be used to support the implementation of a Business Continuity Project Plan. Companies eligible for this scheme are also eligible for the larger scheme.

      Companies can avail of the Business Financial Planning Grant to pay for the development of their Business Continuity Project Plan.

      The scheme offers repayable funding of up to €25,000 to companies with turnover of less than €1.5m and up to €50,000 to companies with annual turnover of €1.5m–€5m.

      As with the main scheme, there is a 4% annual administration fee and a three-year grace period on repayment. No administration charges are levied for the first 6 months and the advance can be repaid early if the company prefers to do that. Funding must be repaid in full by the end of year 5, subject to the achievement of the objectives set out in the Continuity Plan.

      Eligibility: Companies are not eligible if they were already in financial difficulty on 31 December 2019 or were experiencing difficulties for reasons not related to Covid-19.

      To discuss eligibility criteria or any other aspect of the scheme, contact your Enterprise Ireland Development Advisor.

      If you are not an Enterprise Ireland client or do not know who your Development Advisor is, you should first contact the Business Response Unit at businessresponse@enterprise-ireland.com

      How to apply: You can apply via the Enterprise Ireland Online Application System.

       

      Lean Business Continuity Voucher

      The new Lean Business Continuity Voucher helps enterprises to identify and implement the measures needed to ensure that they can continue to operate safely during the Covid-19 pandemic.

      It offers eligible companies up to €2,500 in training or advisory services from approved providers. The services may take the form of management advice or training of management or staff within the company and must be related to the continued operation of the businesses during the current pandemic. It is expected that the services will be delivered online in most cases.

      Project should focus on one or more of these categories;

      • Review of business strategy in light of changing marketplace/supply-chains & customer needs;
      • Introduction of new business practices in order to increase productivity (especially LEAN/Flow);
      • Development of processes for risk assessment and analysis for Business Continuity;
      • Development of working practices for staff safety based on government guidelines;
      • Development of strategy for or investigation of feasibility of doing business online (excluding website development or online marketing costs)

      A listing of approved service providers can be found in the Enterprise Ireland Service Provider Directory.

      Eligibility: The Lean Business Continuity Voucher is open to small, medium or large client companies of Enterprise Ireland or Údarás na Gaeltachta.

      For more information, contact your development advisor or email the Lean & Operational Excellence team in Enterprise Ireland at: businesscontinuityvoucher@enterprise-ireland.com

      How to apply: Companies can apply for the Lean Business Continuity Voucher scheme via the Enterprise Ireland Online Application System.

        Watch financial expert, Brendan Binchy and Enterprise Ireland’s finance team in our Accessing Liquidity & Managing Cashflow webinar.

        Managing Cashflow

        Managing Cashflow in a Crisis

        As managers reset the business for recovery, companies need to adopt a lean culture where expenditure is minimised and every cost is questioned.

        One of the greatest risks facing many businesses in the current environment is running out of cash. A company that can’t pay its bills, regardless of how profitable it is, will quickly go out of business. Cash conservation is therefore key to survival.

        While in the medium to longer term companies will have to look at reengineering their business and operational models in order to meet challenges presented by the post-Covid-19 world, the short term is going to see a focus on cash according to Business Financial Consultant Brendan Binchy.

        “There is much more urgency relating to cash now,” he says. “And there are many things a business can do to manage its cash. Almost everyone out there is availing of debt payment deferrals, for example. They are trying to hit the pause button on cash going out wherever they can so that they can preserve the status quo as much as possible. They are also looking at other areas like aged debtors. You almost have to look at it like a company threatened in a pre-receivership condition.”

        Binchy recommends a structured approach to cash conservation and this starts with the balance sheet. “The profit and loss account is a record of a business over a period of time, but the balance sheet gives a snapshot of the business at a particular moment in time.”

        Companies should pay particular attention to their gearing, he advises. This is the ratio of debt to equity on the balance sheet. “The lower it is the better, but losses will erode equity and increase the gearing ratio,” Binchy continues.

        A healthy gearing ratio will allow companies to borrow judiciously in order to bolster their cash position. “This can be very helpful, but companies need to be aware of the associated debt service costs.”

        The next step is to look at asset funding, where they may be scope for some reverse engineering. “Businesses frequently purchase assets for cash during good times,” Binchy notes. “They could be re-financed now with bank debt and this will improve the cash position. Generally speaking, the asset lifetime and the funding cycle should be the same. It is important to remember that trade debt, like invoice financing, is for working capital not capital expenditure.”

        The sales lead to cash cycle is the next area for examining.

        “It takes time for marketing effort to translate into sales leads, buying decisions, billing, and cash collection”, Binchy explains.

         “This can be quite protracted, and companies need to look for ways to get to close sales quickly and speed up invoicing.”

        The supply chain should also come in for attention to slow the outward flow of cash. “Companies should identify strategic supplier relationships, tighten stock management overall, improve workflows, and negotiate new arrangements such as stockholding facilities with key suppliers. Talking to key suppliers and developing strategic partnerships is a very good ongoing strategy for companies. The more they do it the better.”

        And then there are what Binchy calls the common-sense measures.

        “Defer capital expenditure and other spending decisions wherever possible,” he advises. “Companies need to adopt a mean and lean culture where expenditure is minimised, and every cost is questioned. But this must come from the top down and everyone must share the pain and to be seen to share it.” 

        Once those actions have been taken, it is time to put together a budget plan. “Having these measures in place means you already have your fingers on the pulse and you can make a budget plan to take you from where the business was before the crisis to what’s likely to happen afterwards. The most important thing about the plan is that it should be iterative. You’re not going to get everything right first time around. The plan gives you a framework to forecast and plan for what might happen. You can adjust it weekly and monthly rather than having to build new plans all the time.”

        And businesses don’t have to do this on their own. Binchy recommends the Enterprise Ireland Lean Business Continuity Voucher as a good starting point. This offers eligible companies up to €2,500 in training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate during the Covid-19 pandemic.

        There is also the Covid-19 Business Financial Planning Grant, which is worth up to €5,000, and can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant to assist them prepare a financial plan, understand their immediate financial position, manage costs and identify their funding requirement.

        When it comes to cash for the business, Binchy points to the Temporary Covid-19 Wage Subsidy which he says has been very helpful to businesses throughout the country.

        Sources of working capital and loan finance include the €450 million Covid-19 Working Capital Loan Fund and the €200 million Future Growth Loan Scheme fund available through the Strategic Banking Corporation of Ireland. Businesses which have difficulty accessing bank finance can apply for funding of up to €800,000 from the Enterprise Ireland Sustaining Enterprise Funds. There is also a fund for smaller companies which offers funding of up to €25,000 and €50,000 depending on the size of the business.

         

          Hear from financial expert, Brendan Binchy and Enterprise Ireland’s finance team in our Accessing Liquidity & Managing Cashflow webinar.

          Market Watch Germany – Webinar – Managing and supporting channel partners

           

          Enterprise Ireland’s offices in Germany have launched a series of Webinars: Market Watch Germany. Every Wednesday at 14:00 BST/15:00 CET a new theme will be addressed to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid 19.

          Managing and Supporting Channel Partners in the German market’ is the fourth installment of Market Watch Germany webinar series. The purpose of this webinar is to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid-19.

          Panellists:

          Brian English an Engineer and Marketer with over 30 years international sales and routes-to-market experience.

          Dr. Andrea Seidel, with a wealth of experience in business development and strategic partnership.

          Paul Browne from Enterprise Ireland’s Client Management Development & Client Skills department.