Bean & Goose founders

The sweet taste of success

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When the Covid-19 crisis hit, Irish chocolate company, Bean & Goose, made the most of the lockdown

“The lockdown began right before Easter, which is one of our biggest times of the year,” says Natalie Keane, co-owner of Bean & Goose. “We had finished making and packing our Easter products and we were just about to start shipping them out to our retail customers. But in about two days, we lost about 95% of our customers and our Easter products were sadly left on the shelves.”

Set up in 2016 by sisters Natalie and Karen Keane in Co Wexford, Bean & Goose specialises in making craft chocolate bars, truffles, and chocolate gifts such as their Tasting Club, a subscription service which sends out two bars of chocolate, a once-off bar and one from the core range. They started selling to markets around Dublin until they began getting orders from retail outlets.

But because they were focused on in-person retail through independent retailers, hotels, and cafés to sell their products, the lockdown came as a shock to their business.

“We quickly made the decision that we would have to really ramp up our online campaign because the only way to get these products to our customers was through our online store,” says Natalie. “We were lucky that we invested heavily in our digital marketing in the last couple of years so that when we asked our customers to make the transition to buying online, they were very open to doing that.”

Because of reaching their customers online, the sisters managed to sell out their Easter range, from dark chocolate hares to chocolate goose eggs. In fact, sales figures went up 65% in March, April and May 2020 compared to the same time period in 2019. Within two weeks of online sales, they knew that their customers were loyal to them and would likely continue to buy the products this way.

 

Hard work and support

Natalie and Karen say that a big reason why their business was able to make the leap online and succeed, was due to their hard work over the last few years marketing and building up a solid customer base. This work was helped by being accepted for Food Works in 2015, an Enterprise Ireland, Bord Bia and Teagasc backed accelerator programme for food and drink businesses.

“This was hugely important for us,” says Natalie. “It allowed us to exhibit in bigger markets, secure feasibility funding from Enterprise Ireland, and it really set us up to think of the business as a scalable opportunity. Food Works gave us the roadmap to be able to build the business with the mentoring, advice and contacts they made available to us.”

While this support has helped them achieve success, it was also great timing which helped them during the lockdown. The drive online actually represented an opportunity they didn’t realise they needed.

Natalie says, “We are in a transition stage at the moment as we are changing our core range of chocolate bar flavours for the first time in five years, as well as our packaging. We had always planned to do that at this time, but because we used to deal predominantly with retail customers, we believed we would have to scale back a little and maybe even close the store as we transitioned.”

“Now that we’re trading online for most of our business, we have been able to make the transition and continue trading because our online customers are perfectly fine with the product arriving in the interim packaging and flavours. It’s worked out really well for us.”

As Bean & Goose have managed to keep their business thriving under the lockdown pressures, they also took part in an initiative to highlight the work of frontline workers during these extraordinary times. They were one of 18 Irish designers and makers to give away their products in a hamper to a nominated hero.

“One amazing thing I have noticed through all of this is how very kind and thoughtful people are to each other during this time. So they want to give gifts and there’s no better gift than chocolate. We are definitely selling the right product at the right time!”

Learn how your food business can develop and accelerate its growth with the Food Works program

Creating a buzz in the drinks market

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Irish alcoholic beverage brand Beekon Batches are growing as a business and have not let the lockdown be a buzzkill

“When Covid-19 hit we had to get over our two weeks of thinking ‘do we have any business left, most of our sales were in bars, restaurants and hotels’,” says Karen O’Neill, founder of Beekon Batches. “We quickly got over the shock, pulled ourselves together and hatched a plan! “We couldn’t let it pull us down, so we decided to pivot the business online going direct to consumers whilst also strengthening our retail presence.”

Entrepreneur Karen alongside her wife and business partner Helen Kennedy are the brains behind Beekon Batches, an Irish-made honey-based, all-natural alcoholic beverage launched just last year. Karen, having been involved in the drinks trade for 20 years, realised people’s attitudes were changing on what they consumed. All-natural products, free from additives and preservatives, were growing in populatiry  and saw the opportunity to create   something new.

Beekon Batches is a “honey refresher” and is made with the love of all things bees. It’s created from honey infused with natural ingredients such as fresh lime and ginger, and has  an alcohol content of 5%.

Having  just started on the Enterprise Ireland, Bord Bia and Teagasc accelerator programme called Food Works, the Covid-19 crisis hit, and  their business hit a proverbial wall  due to having limited retail presence.

“We are one of the classic, positive pivot online stories as we managed to be successful with our online business and growing our retail footprint.A lot of that is based on the support, the resources and help we received from the Food Works programme.” says Helen

Helen says, “, When Covid hit, Food Works kicked in with a comprehensive, all encompassing program of support tailored to each participating business.  This was facilitated online right after we went into lockdown.  I have gained invaluable business and management insights across the whole business.”

Everyone on the programme is going through the same thing together so Helen says that every week everyone goes out to buy a product from another business on the programme. “There is a lovely level of support and comradery there.”

A hive of activity

Karen says that from being  anxious at the beginning of the crisis, today she is amazed at how phenomenally well their business has taken off .

“The combination of our new store listings such as SuperValu & Molloys Off licence stores, our online direct to consumer sales and our existing listings that have continued to support us means that we are delivering double the revenue than we were pre-Covid, ,” says Karen. “Our customers and members of the trade have really rallied around us and our story in particular. That is the fact that we are women with a brand-new product, trying to break down the gender bias in a very male-dominated drinks industry. Consumers too are responding very positively, they are craving something new, particularly at this time and Beekon offers them just this, something different and exciting.

“Everything we do is different to anything else on offer right now. Our drink is new, our packaging is textured and fun, and the locations where we sell are based on demand. We always ask our community where they want us to stock and we try to make that happen.”

Because of this support, one of the ways Beekon Batches has been able to give back is by supporting the bees. They do this with their bee pollinator programme. Wherever Beekon is sold, the business tries to do something to help the bees. For example, providing wildflower bee bombs to deploy wildflower seeds, and providing bee hotels where bees can make their nests.

“Last summer we partnered with Airfield Estate to allow bar and store staff to undertake full immersive bee experiences to heighten the awareness and effect behaviour changes to help support the bees. I think the trade really loves what we do here as it’s meaningful and impactful with its intention.”

The future looks very bright for Beekon Batches, so what does Karen see for the future of the business?

Karen says, “We want the drink to be universally sold in Ireland and then internationally. Consumers are becoming more conscious about what they’re consuming these days and about their own influence on sustainability, so another goal is for everyone to buy with this in mind. Our product can be the thing people choose to make a difference in the world and that’s an amazing feeling.”

 

Learn how your food business can develop and accelerate its growth with the Food Works program

 

Keep going, keep growing with Keogh’s

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Tom Keogh, MD of Keogh’s Crisps – producers of award-winning crisps and potatoes – talks about pivoting his business during the pandemic and giving back to Ireland’s frontline healthcare workers.

Being a family business that sources its ingredients and hires its staff locally, Keogh’s have an ethos that is based around community and support. And this very ethos is what prompted founder Tom Keogh to set up a fundraising initiative during the pandemic called Ireland Thanks You.

“My wife, and many other family members, work as nurses,” he explains. “So I got a real insight into the day-to-day risks their roles involve. We started doing food drops around hospitals but we wanted to do something bigger, especially as we couldn’t find a charity for frontline healthcare workers that put something directly in the hands of healthcare workers.”

The fundraiser guarantees that 100% of every donation goes directly to healthcare workers. Those in facilities that were most greatly impacted by Covid-19 will receive a €100 voucher.

“We have raised about €80,000 so far and are on track to reach €100,000 by the end of the month, which is fantastic.”

 

Challenges and positives

Impressively, Tom and his team put in long days and nights over a period of three weeks to develop the campaign, even though there were a lot of changes happening within their business due to the pandemic. However, he feels fortunate that business continues to boom.

“Two-thirds of food in Ireland is consumed in the home and one-third is outside of the home. Two-thirds of our sales were in the multiple retail sectors, in Tesco, Dunnes Stores, and Musgrave, for example, and one-third of our sales were in the food service sector.

“We saw one-third of the sales of our crisps completely disappear overnight. Then there was the uncertainty with exports. The pandemic has naturally had a negative impact on any development we had been working on overseas.”

But on the positive side, Tom says the increase in top retailers in Ireland was dramatic.

“Some weeks, we saw a 70% increase in demand. The extra demand more than accounted for the loss we saw in the food service sector.”

“We were also lucky enough that we had a huge amount of products on the sea when Covid-19 struck, which meant they were pulled in quickly to overseas markets. The States have seen the same big demand in multiple retail, that we have seen in Ireland.”

 

Helping hand

Indeed, Keogh’s are no stranger to trying times, having seen a 10-year decline in fresh potato consumption in Ireland in 2011.

“Our market was disappearing for fresh potatoes in Ireland and being potato growers for over 200 years, we needed to do something about it,” says Tom. “We were part of the Food Works Programme, an accelerator programme for high potential food businesses, for our potatoes at the time, and the idea for crisps actually spun off towards the end of this.”

Tom says Enterprise Ireland played a huge role in helping them get the business off the ground. “We had fantastic help from the Local Enterprise Office in Fingal, who provided us with a small repayable grant to get the business up-and-running. Bord Bia were a help too.

“We have seen considerable growth in the business since and we continue to have strong links with Enterprise Ireland.” said Tom

What has Tom learned from the pandemic?

“The world is a small place! We never imagined coronavirus would impact Ireland as much as it has, so it has opened my eyes. One of the things that has worked well for us is the fact we sell products in different sectors in many different countries. We had some areas that performed extremely well and some were poor, but because we had that spread of business, it allowed us to continue trading.”

During the pandemic, the Keogh’s Crisps team was also able to focus on the e-commerce side of things and launch an online shop section on their site.

“We turned it around in about nine days. A big thing I’ve learned is that, as a business, we can keep focused, adapt, and do anything when we need to.”

 

Visit Keogh’s to see their story and full product range

Managing Cashflow

Managing Cashflow in a Crisis

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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

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    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.

    Financial planning to accelerate your recovery

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    The global economic crisis triggered by the Covid-19 pandemic is unlike any seen before in history in terms of the rapidity of its onset and its scale. It has been variously referred to as a black swan event or as a perfect storm, and for individual businesses worldwide its effects have included state- mandated shutdowns, a near total collapse in demand and, for the lucky, an enforced shift to new ways of working and business models.

    As Ireland begins its first tentative steps towards a return to something approaching normality, businesses too must start planning their pathway to recovery and beyond. According to Business Transition Consultant Brendan Binchy, the first step for business owners is to analyse the company’s current position and develop a vision for the future.

    He advises people not to panic. “It’s not a question of asking if the crisis will impact on the business and worrying about that,” he says. “It is self-evident that it will impact. You have to be proactive, not reactive. You might know how it will affect the business this year, but what about next year? Where do you want to be then? You need a to have vision for that. And from there you can work out what to do and what not to do and what you need to change.”

    There are also actions which need to be taken immediately to stabilise the business. In Binchy’s view, these actions require businesses to examine and reset their business models, develop and implement very tight cash management strategies, and adapt and modify their operations to meet the new conditions in which they find themselves.

    “You have to look at where you are financially, ask where your customers are coming from and why they buy from you, and if it is possible to recalibrate the business, to come up with a new model which will see it through the current period,” he advises.

    That might be termed the firefighting or survival phase. The next stage is to plan for recovery and beyond. While planning in such times of massive uncertainty may seem an impossible or even futile task, Binchy believes it is worthwhile and an absolute necessity.

    But the plan must be flexible and adaptive in order to deal with sudden changes in a highly dynamic environment. “We have to accept that what we think will happen may not come about. But if you don’t have a flight plan, you have no way of getting to your destination. When you’re up in the air you need to know where you’re going. You may get knocked off course from time to time and you will need to adjust the plan in response.”

    Even the process of putting the plan together can be helpful, he notes. “It is cathartic and helps clarify things.”

    This clarity comes from the examination of the business and its environment. Questions Binchy puts include:

    • Is your industry shut down or is it still working?
    • Are there opportunities there?
    • What has been the impact of the crisis on customers?
    • Do they still have money?
    • Do they still need your products or services?
    • Are there customers you no longer need?
    • What has been the impact on competitors?

    Fortunately, there is help out there both to develop plans and implement them.

    He points to the Enterprise Ireland Covid-19 Business Financial Planning Grant as a very important support. 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. The consultant will work with the company to prepare a robust financial and business plan that identifies the funding needs and the potential sources of this funding.  

    Another valuable support Binchy advises businesses to take note of is the Lean Business Continuity Voucher, which offers eligible companies up to €2,500 in vouchers for training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate safely during the Covid-19 pandemic.

    Support for the implementation of the plan is there in the form of the Enterprise Ireland Sustaining Enterprise Fund, which offers funding of up to €800,000. Very importantly, no repayments are required for the first three years of the five-year term of the advance and there is an annual administration fee of just 4%, making it a very attractive source of finance.

    Smaller businesses can also apply for advances of up to €50,000 depending on their size under the Sustaining Enterprise Fund – Small Enterprise scheme.

    “Businesses can also look to shareholders to put in new capital or go to the banks,”, Binchy concludes. “The important thing is to develop a plan and have the finance in place to implement it.”

     

    Watch our webinar addressing the critical challenges facing Covid-19 impacted businesses – Accessing liquidity and managing cashflow.

    Get advice from financial expert, Brendan Binchy on how best to navigate these issues and hear from Enterprise Ireland’s finance team on the financial supports available from Enterprise Ireland.

    Anne Lanigan Enterprise Ireland

    Market Watch – A view from Europe

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    Key Takeaways

    • Business in Europe has been severely impacted by Covid-19, but many countries are now beginning to re-open and are determined to get industry and business moving again
    • Movement of products is improving while movement of people is still a challenge.
    • Opportunities are likely to emerge for example in digitisation across industries; or in the healthcare sector for non-Covid related health issues.
    • Preparation and planning is vital.
    • Enterprise Ireland offices around the region are on hand to offer support.

    There is no doubt that Europe has been heavily hit by the effects of the current pandemic, but regional director Anne Lanigan says many countries are beginning to move into recovery phase and countries across the Eurozone are determined to get their industries and businesses moving again. There is a general acceptance in Europe that we need to learn to live, as safely as possible, with the virus. Construction and manufacturing industries are gearing up while observing social distancing and using personal protective equipment; digital technology and office based businesses are for the most part still working remotely but increasingly effectively and in a number of countries e.g. in France and the Netherlands some services like hairdressing have re-opened under strict guidelines.

    “The numbers speak for themselves in terms of infections and fatalities, but most countries have passed their peak and are moving into exiting confinement and reopening – all at slightly different stages,” she says. “But there is alot of similarity in terms of the timing of countries coming out of lockdown at this point and what this is really saying is that Europe is opening up again.”

    Lanigan says while we are inclined to look at when schools, shops, and social outlets open, what is really important to the restarting of economies is when industry is recommencing.

    “Whether or not you can get a haircut isn’t relevant to most of our clients, what is really vital is the restarting of construction and manufacture and the returning to work in businesses. Of course movement of people and products is crucial to this” she says. “Movement of product is definitely improving but movement of people, particularly across borders, is still an issue which of course affects our clients.

    “Each country is different and even regions within countries can be at different stages and have different restrictions, so it’s important to get up to date and accurate information from your partners, customers and logistics providers.  For example most countries will have a requirement to use face masks in certain circumstances, and social distancing rules will differ between countries. So don’t assume that the Irish rules will work – it’s important to know the specifics of the country you are working in.” Enterprise Ireland offices across the Eurozone can also help clients with this.” Irish companies with personnel on the ground in Europe are in a lot of cases eligible for state support from the country they are operating in and again our offices can offer advice and direction on this.

    Thankfully many Enterprise Ireland client companies have maintained business in the Eurozone throughout the crisis and some have won new business. However while some clients have continued to do business in a similar fashion to pre-Covid days, most will need to get used to new requirements and many may also need to diversify.

    “Our clients will need to be creative in adjusting to the new normal” says Lanigan. “Digitisation will form a large part of this. Localising (not just translating) websites is more important than ever – ensuring that websites are easily found, are easy to navigate and provide all the necessary information in a clear format. Social media is also getting a lot of traction at the moment, so making sure to be ‘out there’ in terms of social media, will help to raise a company’s profile.”

    “As countries open up, travel will continue to be restricted so if companies can digitise their maintenance and servicing by providing online videos or some kind of instruction online or via a webinar in a sophisticated and professional manner, this will help them to hold on to business. Online shopping functionality may also be an important capability to add for some businesses.

    Understanding how each country works is vital for Irish exporters, but the regional director says keeping in touch is even more important.

    “Communicating with customers is still crucial whether business has slowed, stopped or continued during the current crisis,” she advises. “The communication lines must be kept open – and ear-to-ear or ideally face-to-face on a virtual platform is much better than an email. So virtual meetings, webinars and virtual distributor forums will all help to maintain communication and build strong relationships.

    “This will keep businesses up to speed on what is happening in the markets and what is happening with their customers and so position them to adjust more quickly and in the right direction to maximise potential.

    In every crisis there is opportunity and the current pandemic is no different with several sectors set to do well out of the situation. Lanigan says “Every industry is now seeing digital transformation at an accelerated pace and there are opportunities for businesses who digitise fast and opportunities for businesses who offer digital and tech solutions.”

    “Our clients and Irish people are typically good at spotting opportunities,” says Lanigan. “I would encourage companies to look at how they can pivot in the current crisis – anything which reduces human contact and allows remote operations will have opportunities i.e. digitisation. 

    “Another area likely to surge is non-Covid related healthcare. In most countries routine treatments have been put on hold or much reduced in order to deal with Covid 19 cases. As things move back to normal, there is likely to be a big demand for other med tech and pharma products. Now is the time to prepare for that.”

    Lanigan advises companies to be look toward the future, reset and get ready for the recovery. “There is a danger that we just focus on the immediate – we are advising clients to also look at the medium to long term and get plans in place” she says. Future business may be a continuation of current business but with added value or an adjusted value proposition; it may be with a repurposed product pivoting to a different sector; it may be exploiting brand new opportunities created by Covid 19; or it may be replacing global products with ‘made in the eurozone’ products. “We are nearing the end of the stabilise phase and moving into reset but we need our eyes on the recovery – so be prepared, be aware and look forward. Enterprise Ireland’s team across the Eurozone are here to help you reset, recover and build your business.”

    Anne Lanigan is Enterprise Ireland’s Regional Director for Europe. To learn more about the steps companies can take to address the impact of Covid-19 visit our business supports page.

    Supporting great people in difficult times

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    Developing employee engagement now will pay dividends long into the future

    Up until the pandemic, the biggest challenge facing many firms was attracting and retaining talent. That hasn’t changed, says Ryan Williams, CEO of Conscia, a training provider which specialises in employee engagement.

    Conscia is the architect of a series of online modules designed to help companies maintain employee engagement throughout the Covid-19 crisis.

    Each provides practical steps to take, plus easy to use templates and frameworks, to help companies maintain their employee value proposition (EVP).

    Those that succeed in doing so will not only optimise productivity throughout this current, difficult time, but will be well placed to capture the opportunities of the post-pandemic surge.

    Those that neglect employee engagement, however, risk damaging their reputation as an employer of choice long into the future. “It’s about asking yourself, how you want your company to be remembered after this pandemic,” says Williams.

    Your EVP is an invaluable retention tool and should be robust enough to support employees in good times and in bad, he points out.

    “The market for talent will be equally as competitive when we come out the other side of this as it was when we went in,” says Williams.

    “Though some sectors will suffer more than others, the fact remains that if you needed a software developer before this, you will still need one after it, so it is important to get the best talent that is out there.”

    The top priority for employers right now is communication.

    By this stage new work practices will be established, either from home or, socially distanced, in the workplace.

    “The novelty of the early stages has well and truly worn off, the buzz of setting up meetings on MS Teams and Zoom has ebbed, and people are starting to feel this will never end. The risk is that employers stop communicating when in fact it is vital to over-communicate now and throughout this process.”

     

    Deliver your communications with confidence

    In a period characterised by uncertainty and anxiety, it’s important to display “honest confidence” he says.

    “Be honest and transparent and deliver your communications with confidence, even if it is bad news, such as, perhaps, having to take a pay cut to get through this. People can cope if they realise there is light at the end of the tunnel.”

    Empathetic leadership is essential.  “You need to communicate your company’s vision and mission with empathy. It’s about understanding that your people are going through challenging times.”

    Weekly ‘all hands’ meetings online are an opportunity to show that everybody is part of what is a communal effort.

    “Be very honest about what you do and don’t know. The rumour mill can be difficult to manage so share the good, the bad and the ugly with honest confidence.”

    Decision making in a time of crisis should be quick and decisive, with resources allocated speedily. Employee polls are a quick and effective tool for effecting change, offering maximum transparency and ‘buy in’.

    Regular, scheduled and consistent communications help keep fear and anxiety at bay. Use video as much as possible. “People want to see their leaders.”

    Be cognisant of the impact not just of your words, but of your tone and body language too. “Lean forward, be expressive, use your hands,” he says.

    As well as large town hall type, and team meetings, make sure to set aside time for one to ones, to check in with people and see how they are doing.

    Recognise and reward output. “Celebrate team wins and individual efforts more than in ordinary times. People are doing fantastic things right now so make time for shout outs in meetings and promote them on your social media too.”

    Fostering ‘water cooler’ moments online helps to replicate the everyday interaction of the traditional workplace. “Don’t lose your social cohesion.”

     

    Building trust and loyalty

    At every step, focus on building trust and loyalty. “Very many companies have spent years building up their culture. Don’t lose it. Find new ways of maintaining it instead.”

    Social distancing will likely continue for some time, as will working from home. “We are all living with uncertainty at present, so ‘What does this mean for me?’ is the key question people have. While you can’t control this, you can help by removing as much of the uncertainty for employees as possible.”

     

    Provide purpose and stay positive

    The current situation provides a great opportunity for learning and development. “This doesn’t have to cost you money,” he points out.

    “It could be online learning opportunities, or a situation where an experienced member of staff helps train up others on a new software tool, such as cucumber. It could be a buddy system, where someone experienced is matched with someone who may be feeling overwhelmed.”

    Spare capacity could be given over to executing planned projects that had previously been put off. “We have one client company, for example, who built an entire logistics platform in eight weeks, a project it had long wanted to do,” says Williams.  

    Such initiatives help provide purpose, an important component in employee engagement.

    Set short term goals for long term results. “Focus on bite sized projects to help people navigate through.”

    Finally, stay positive. “Remember, this is different from the financial crisis because it is the same for everybody. From Ireland to China to the US, the base line has lowered for everyone. So, while there is uncertainty, and a need to paint as honest a picture as possible, it’s also important to look to where the opportunities will be post-pandemic.”

     

    To find out more about building employee engagement during the Covid-19 restrictions see here.

    Market Watch Germany – Webinar – Enhance your digital presence for the German market

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    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.

    The third webinar in the series; Website Optimisation: Enhance your digital presence for the German market, took place on Wednesday 29th April

    The team was joined by consultant Suzanne Dirks, Ed ​Kelly, Creative Director and Emmet Dunne, Managing Director of Digital Agency Kooba providing expertise on:

    • how to leverage your website in terms of layout and localisation

    • how to increase traffic to your website by creating an enhanced user experience

    Finally, Eoin O Siochru from Enterprise Ireland’s Internet Marketing Unit discussed the supports available to Enterprise Ireland client companies to drive these activities.

     

    jenny melia

    Support where it’s most needed for HPSUs

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    The innovation and dynamism of Enterprise Ireland-supported high potential start-up (HPSU) firms are vital to future economic growth, and it is absolutely essential that HPSUs that were progressing prior to Covid-19 receive the support they require to get through the Covid-19 crisis.

    “These firms and their founders are the future leaders of the economy and our focus is on ensuring that they have sufficient fuel in the tank and the right resources in place to get through the next three to six months and be ready to take advantage of the upturn when it comes,” says Enterprise Ireland Divisional Manager for HPSUs Jenny Melia.

    HPSUs do face particular challenges in the current environment, mainly due to their early stage of development. “Many of them are not yet revenue generating and are continuing to fundraise to drive business development,” Melia explains. “This can mean that they do not qualify for some of the Covid-19 supports available at the moment. It can also be the case that they haven’t been in business long enough to have built up a relationship with a bank.”

    According to Melia, the three main problems faced by these fast-growing firms relate to cash flow, investment, and talent retention.

    “In a lot of cases sales have just stopped,” she says. “They have no cash coming in from that source and that can turn into a double whammy if investors back off. There is a softening of sentiment in the investment community at the moment and that is presenting problems. Holding onto key skills is another real pain point for a lot of companies. We were nearly at full employment in the economy just a few weeks ago and they had to work very hard to get the right people. They are in danger of losing them now and these skills will be critical to support future growth.”

    Support is available to deal with these issues, however. In the first instance, Melia advises firms to avail of the Enterprise Ireland Covid-19 Business Financial Planning Grant scheme, with supports of up to €5,000 to help companies prepare financial plans with the assistance of an expert.

    “We are asking start-ups if they have assessed the impact of Covid-19 on their business and if they need assistance and financial support to do that,” she points out. “We are already seeing a great deal of interest in the scheme. This will help start-ups develop a stabilisation plan, which should look at resetting their business plan e.g. reducing the cost base and lengthening the financial runway to tide them through the next 3-6 months and prepare for the upturn including raising new investment.”

    The next step is to work with existing investors and shareholders. “Companies should discuss the possibility of bridging finance with their investors,” says Melia.

    “Enterprise Ireland is also willing to co-invest as part of this investment. That is a new departure for us. Typically, when we invest in a company it’s to fund a growth plan for the next two or three years. In this case, we are absolutely willing to play our part alongside existing funders and investors in ensuring HPSUs get through the current financial crunch. Companies should speak to their Development Advisor about this.” advises Melia.

    There is also the loan scheme from Microfinance Ireland. “This is open to start-ups with fewer than 10 employees, and the amount on offer has been increased from €25,000 to €50,000. The interest rate has been reduced to 4.5%, with a moratorium on interest and repayments for the first six months. I would encourage start-ups to look at the scheme to see if it is suitable for their needs.”

    The Covid-19 Wage Subsidy Scheme is a valuable source of assistance in helping to hold onto talent. “The scheme was initially aimed at firms suffering a reduction in turnover but, recognising the particular circumstances of start-ups, Revenue introduced another criterion, which was a downturn in the level of investment companies had projected. Some companies are not aware of this.”

    Enterprise Ireland is also organising a series of webinars to provide advice and support to HPSUs. “We have a number of former HPSU founders that have come through a number of recessions and downturns and have very valuable advice to offer.”

    Companies should also leverage the advice available through their own networks, she adds. “They should contact their Enterprise Ireland Development Advisor, their investors, business angels, suppliers and customers out in the market and so on. These are the things that entrepreneurs do anyway, and they are more important than ever now. We firmly believe that there will be opportunities out there for firms when the crisis ends, and our focus is on helping our clients to be ready for these opportunities when they arise.”

     

    Market Watch – How Covid-19 is impacting the Asia Pacific region

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    Just as it has affected every corner of the globe, Covid-19 has made its presence felt in the Asia Pacific region. But according to Enterprise Ireland’s regional director for Asia Pacific, Mary Kinnane, while there is no doubt that it has had a disruptive impact on economies, businesses and lives, the level and magnitude of the impact differs by country and even sector.

     

    • While countries have been impacted in different ways, there is no doubt that Covid-19 has disrupted business and lives across the region.
    • Providing solutions for clients and showing commitment is crucial for Irish exporters.
    • Many sectors have been badly hit but there are still signs of growth in a variety of areas including life sciences, health care and education solutions.
    • The region has shown resilience and is likely to be one of the first areas to emerge from Covid-19 restrictions.

     

    “China and South Korea were amongst the first countries hit by Covid-19, and life there is slowly but cautiously getting back to normal,” Kinnane says. “More and more businesses are now operating as before with public facilities reopening, while other countries in the region are still undergoing lockdowns and strong containment measures.

    “Adverse economic impact, at least for this year, is evident as seen from the revised GDP growth projections from the IMF earlier this month.  And the world economy is now projected to contract by -3% from the previous year, with growth projections for China at 1.2%, Japan at -5.2%, Korea at -1.2%, ASEAN 5 at -0.6%, and Australia at -6.7%.”

    Although Irish exporters will undoubtedly be affected, Kinnane say showing unwavering, commitment during these challenging times to customers and partners is particularly important.

    “Saving face is an important aspect of business culture in Asia so carefully managing the knock-on effects for your customers and partners is advisable,” she says. “If your business is adversely impacted by Covid-19 and consequently if you cannot fulfil orders, contracts or deadlines, then be clear with your customers and suppliers, but also try to provide alternative options and support. This will be perceived as a measure of your seriousness and commitment for the long term.

    Enterprise Ireland has made available new funding and capacity support programmes to help companies through Covid-19. says Kinnane.

    “We are acutely aware that our support is ever more critical so our network of offices from Beijing to Sydney are providing virtual introductions to buyers and partners, market research on trends and emerging opportunities and challenges along with other in-market business continuity and development supports.” says Kinnane

    “We also see that some Irish businesses are taking this time to develop market entry and expansion strategy for some Asian markets with a medium- to long-term view.  We are aiding those businesses to achieve the objective, using our market knowledge, insight and networks in local markets.  Customer targets in ANZ & the ASEAN region are proving quite receptive to remote new enquiries with this being somewhat more challenging in the north of the region where facetime and relationships really matter.”

    While travel restrictions have been problematic for tourism and many businesses have been heavily hit by uncertainty, the regional director says there is increasing attention on the life sciences/healthcare sector with more favourable government policies likely to underpin increased investment in the sector. Cloud based SaaS systems, teleworking tools, and paperless processes are also seeing an increasingly rapid roll-out with opportunities well suited to the innovative and agile solutions provided by many Irish businesses.

    In addition, various Asian companies have announced their intention to develop antibodies or vaccines to combat Covid-19, so Irish businesses with strong expertise in pharma servicing, regulatory consultation, clinical trials and supply chains are actively probing for new and enhanced opportunities in the region.

    “Many companies tended to take a conservative approach relative to their western peers to remote work, “says Kinnane. “But Covid-19 has prompted companies, particularly in China, South Korea and Japan, to re-assess the value of remote-working. And there is now more leniency and openness in corporate culture to embrace the practice with a more strategic and long-term view. Hence, it’s timely that Irish companies now look to the east to capture untapped opportunities. But they may need to be prepared to conduct business for a prolonged period under current conditions and be more creative and resourceful than ever in developing and maintaining customer intimacy.”

    The regional director says it’s projected to be one of the first regions to emerge from the Covid-19 challenge, with economies faring relatively well. So as economic and business activities begin returning to normal, it’s imperative for Irish businesses to provide best-in-class services and products to their existing and potential customers in order to exhibit commitment and capability to perform in times of crisis.

    “Companies are currently reviewing their supply chains so if there are prospective customers and partners that Irish businesses have wanted to work with, this can provide a context to approach or re-approach them,” she advises. 

    “The overarching message from APAC is that of a region demonstrating real resilience with economic fundamentals remaining strong, and the opportunities for world class Irish companies being very compelling.  Our teams, from Beijing to Sydney are fully operational, ensuring a continuity of service with clients and networks and have a range of business supports and funding options to support exporters.”

     

    Learn more about supports available to businesses impacted by Covid-19 at Enterprise Ireland’s business response.

     

    The funding landscape – surveying the options

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    Funding Landscape

    With entire business sectors forced to either cease trading completely or go into a period of near hibernation as a result of the Covid-19 pandemic, many companies are faced with a situation where income has slowed to a trickle while outgoings cannot be eliminated entirely if the business is to survive and emerge from the crisis intact.

     

    Look Inside the Business First

    These factors make a company’s state of readiness for access to funding, from all sources, critically important. When surveying the funding landscape, John Power, director of specialist financial advisory firm SGL, says the best place for companies to start is internally. That potential source encompasses existing debtors and customers who may be willing to pay in advance for a discount and also maximising terms with creditors which may include payments to Revenue.

    “Firms must still submit their returns on time, but Revenue is not going to apply penalties and interest for late payment,” says Power. “Revenue has really stepped up to the plate here. Companies should appreciate that flexibility and use it while they can.”

     

    Investigate State Support Schemes

    He also points to the range of supports on offer from the State, including the €450 million Covid-19 Working Capital Loan and €200 million Future Growth Loan schemes available through the Strategic Banking Corporation of Ireland (SBCI) and the €180 million Sustaining Enterprise Fund through Enterprise Ireland to help companies in the manufacturing and internationally traded services sectors to adapt their business models and return to viability. A Rescue and Restructuring Fund for worst-case scenarios is also available.

    “The SBCI Working Capital Loan Scheme offers loans of between €25,000 and €1.5 million over three years with a maximum interest rate of 4%,” says Power. “The funding is available on an interest-only basis for the first three months, and that will help companies get through the initial period of the crisis. Also, the first €500,000 is unsecured. That’s very important for service-based companies who may have limited assets to use as security.”

    Enterprise Ireland also has a new €5,000 Covid-19 Business Financial Planning Grant to help companies prepare financial plans for their internal needs and to better prepared to present a strong lending proposal to banks and the SBCI. There are also a number of strategic consultancy grants and other supports available to help companies maintain and enhance their competitiveness.

    Smaller companies also have other options. “Microfinance Ireland has stepped up with loans of up to €50,000 over three to five years at an interest rate now reduced to 4.5%, with no repayments required and no interest charged in the first six months,” says Power.

     

    Engage with your Bank

    Bank finance is, of course, an option worth pursuing but can be difficult to get in the current environment. “Banks look principally at two things,” Power explains. “Capacity to repay and security. And they need both before they will advance a loan. I hope that banks take a forward-looking view or else look back on 2019 performance when assessing companies’ ability to repay loans. If they just look at the first quarter of 2020, it will make things very difficult.”

     

    Credit Guarantee Scheme

    Companies which can demonstrate capacity to repay, but fall down on security, can always utilise the Credit Guarantee Scheme, he adds. Managed through the SBCI, the scheme guarantees 80% of the value of the loan in return for a half a percent premium on the interest rate. “This gives the banks the security they require in many cases,” says Power.

     

    Sustaining Enterprise Fund

    For companies that have been unable to raise finance through either the SBCI or the banks there is the Enterprise Ireland Sustaining Enterprise Fund. The purpose of the €180 million fund is to sustain companies which have been impacted by a 15% or greater reduction in actual or projected turnover or profit, or which have seen significant increase in costs as a result of the Covid-19 outbreak.

    In order to qualify, businesses must provide a Business Sustainment Plan outlining how the company will be stabilised and return to viability. Qualifying businesses will be offered a repayable advance of up to €800,000 to support the implementation of the plan.

    Very importantly, there is a three-year grace period on repayments. The advance must be repaid by the end of year five.

    “I am pleased to say that the new Sustaining Enterprise Fund is now open for businesses who are unable to raise adequate funding from the market,” says Enterprise Ireland CEO Julie Sinnamon. “My strong advice to companies is, if you haven’t already done so, to prepare an assessment of your financial requirements and progress funding applications to the banks and the Strategic Banking Corporation of Ireland (SBCI) immediately. Enterprise Ireland’s new Business Financial Planning grant will help companies to prepare a Business Sustainment Plan.”

    Other supports available through Enterprise Ireland include the new €2 million Covid-19 Online Retail Scheme which offers grants of up to €40,000 to retailers employing over 10 people to develop a more competitive online offer. Companies can also avail of the new €2,500 LEAN Business Continuity Voucher to help them access the expertise to identify the key measures needed to ensure continued operations.