Rachel Bell and David Fraser discuss the impact of Covid-19 on the UK's PR agency market
Ben Smith, Founder, PRmoment.com
We discuss how different sectors are affected, what the impact of the government’s furloughing scheme will be on the PR business, how the government’s business interruption loans can work, and the impact of Covid-19 on employees and clients to date.
Here’s a summary of what we discussed:
I’m conscious we have international listeners, to confirm the government schemes we’re talking about in this show are the UK government's schemes.
Rachel Bell interview:
[00:01:35] What types of businesses, in terms of clients, have reduced their spend so far.
[00:03:21] How, almost without exception, new business wins for agencies are on hold.
[00:03:35] How some sectors and services are more exposed than others.
[00:04:57] How all client-variable expenditure is under huge scrutiny.
[00:05:09] Why agencies need to be able to repurpose client spend into something that creates a new opportunity for brands.
[00:05:47] Rachels's step-by-step guide for agency owners in this Covid-19 crisis.
[00:06:15] Why all companies must immediately get a handle on their expenditure.
[00:06:45] How landlords, in the main, have been amenable to giving a rent holiday.
[00:07:37] Why agency owners must scenario plan and understand what their business will look like if they were to lose 25%, 50% and 75% of their contracted income.
[00:08:25] Why an understanding of fixed costs and marginal costs is essential for agency businesses to survive the Covid-19 crisis especially given the impact of the various government schemes.
[00:10:35] Why the government's furloughing means agencies do not need to run at a loss.
[00:11:46] Why the furloughing scheme is a very good scheme for PR firms.
[00:14:02] The importance of cash flow for PR firms right now.
[00:14:32] How the government's tax payment holidays may help with your cash flow.
[00:14:54] How the business interruption loans works and how it can be a fairly straightforward process for businesses to apply, as long as they can show themselves to be profitable prior to Covid-19.
[00:18:07] How do brands need to communicate with people now that we're all at home, all of the time.
David Fraser interview:
[00:22:51] David gives his perspectives on how the PR agency world is faring two weeks into Covid-19.
[00:24:13] As cashflow is so vital for all businesses at the moment, how is David attempting to retain cash in Ready10?
[00:26:23] How luck has played a prominent role in deciding which agencies have been more/less effective by Covid-19; it will depend on the sectors that you have clients within.
[00:29:18] David discusses the impact of the Covid-19 lockdown on his employees.
[00:31:07] How the tone of communications is more important than ever.
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