Wehaveworkedwithclientswho havesuccessfullyturnedthreats intoopportunities

This year has brought unprecedented challenges to the Scottish food and drink sector. The agility, innovation and resilience shown by many producers is one of the few positives.

Effects of the pandemic and national lockdown have impacted each business differently. Some firms have been forced to a standstill, while others have experienced a surge in demand.

One significant consequence of lockdown restrictions and health and safety concerns has been a sharp rise in deliveries direct to the consumer.

This change in behaviour has presented multiple opportunities for food and drink businesses, which Anderson Anderson & Brown (AAB) is helping clients to develop.

We are supporting firms with grant applications, other fundraising, and adapting and using technology to either open up new revenue streams, or revolutionise their business model and operations.

We are finding medium and long-term growth strategies being accelerated to take advantage of immediate opportunities and, in some cases, simply to survive.

Innovation and investment require significant thought and speaking to your adviser before taking action will help you plan.

We have worked with clients who have successfully turned threats into opportunities, such as implementing direct sales across many food and drink sub-sectors. Examples include agricultural businesses delivering meat and fresh produce to local households, restaurants offering takeaway food and retailers operating delivery services while their doors remain closed.

Other success stories include a catering client who successfully applied for the bounce back loan scheme, allowing them to accelerate growth plans and invest in contactless technology.

The cash injection also helped them to sell their fresh produce to a wider client base.

Another example of adaptability is a hospitality client who has used the downtime to develop a large outdoor seating area, allowing them to reopen to the public and increase capacity with or without social distancing.

We have also seen alcohol retailers becoming distributors for wine and spirit companies, offering online tasting sessions via video call platforms.

Innovation has been essential for businesses responding to the challenges presented by Covid-19, ranging from the development of product ranges to modifying operational processes.

Cashflow and working capital requirements have been under greater scrutiny since the onset of the pandemic.

We encourage business owners and management teams to be mindful of the potential for research and development (R&D) funding.

AAB has secured R&D claims for a number of clients in recent weeks which provided a welcome boost to their working capital and cashflow during these unprecedented times.

Businesses throughout the country have been accessing governmentbacked support such as VAT deferral, the job retention scheme (furloughing), and coronavirus business interruption loans.

These measures have certainly helped steady the ship over recent weeks and months, but at AAB we want to encourage businesses to be more forward-looking.

We are encouraging firms to modify their projections and review internal processes, in order to make sure the right information is being used to make the correct decisions and formulate business plans for the short and medium-term.

Doing so will help to make sure their businesses are scalable and commercially sustainable.

Technology is also making a difference. Businesses that use cloud accounting see the benefits of being able to monitor their financial position using real-time information – giving them a stronger grasp of their cashflow and working capital.

ON THE DOORSTEP: One consequence of lockdown has been a surge in deliveries direct to the consumer