Coronavirus: The day everything stopped

Tuesday, 14 April 2020

Small and medium sized businesses have been hard hit by the alert level lockdown.

Some have had their entire income disappear while others have continued in some capacity as a essential services.

For Ryan Sharma, co-owner of Bluebells Cakery, business was 'mothballed' when the country moved to level four.

'As soon as the announcement from Jacinda about moving from two to level three and then level four, we took it really literarily about cafes, bars and restaurants closing so we shut immediately.'

Karla Goodwin and partner Ryan Sharma, of Bluebell's Cakery, were set to open their new flagship store at the end of March but the lockdown means those plans have been mothballed.

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But closing the existing business was only part of the pain for Bluebells.

Kristin Dana, of Wanaka, has had to find ways to build the business while under lockdown.

The company was set to open its new flagship store in the almost finished Commercial Bay development.

'We have been doing the fit out of that for the last six months and there is a six figure sum that has gone into its development. But it's essentially mothballed until lockdown is over,' Sharma said.

'We are hibernating.'

Sharma and his partner Karla Goodwin are using the time to plan beyond the coronavirus crisis.

'We are looking at big picture stuff and strategising for the rest of the year. Commercial Bay was supposed to be our big strategy for the year but now we are looking at our website and our product offering,' he said.

'We're not sitting idle but there is just a huge amount of unknowns about when we will be able to operate again and what demand will be.'

The question of what happens next looms large for Kristin Dana, founder of Bare Naked Soap, based in Wanaka.

'Part of my income is market based and the last couple of months of markets have been cancelled, so I have taken a big whack financially' she said.

'That is to be expected but when all of this is over and people are starting to get back on their feet, there are going to be no markets and the other thing is, because everyone else has lost out does that mean people really start to review their spending?'

Bare Naked Soap owner Kristin Dana says the loss of markets has had a significant impact on her specialty soap business.

They may decide that luxury soap is not an essential item, Dana said.

'This will make people think differently as they get back on their feet which is going to impact all of us small business owners. That's what I am worried about.'

She said she was using the time during lockdown to revamp her website.

'That is what's keeping me going. Every day I can still get out of bed and do something that will keep me going in the long run.'

Dana encouraged people to support small businesses once lockdown lifts.

The Who Did You Help Today Trust founder Stacey Shortall says small businesses have been contacting the trust for help to navigate the lockdown.

'People need to support locally as much as possible because they are going to be the ones that struggle the most. It will help the local economies get back on their feet after the hit,' she said.

'Always support small and support local.'

Small businesses of less than 20 workers make up 97 per cent of all businesses and employ 29 per cent of workers, according to Stats NZ.

Last year small businesses contributed 26 per cent to the country's gross domestic product.

Stacey Shortall, Who Did You Help Today? founder, said being proactive is important for small businesses.

The trust is linking experts with small businesses trying to navigate the new rules and support packages from the Government.

'When New Zealand went into total lockdown, we began hearing about small businesses who were grappling with the consequences of the lockdown. So we thought why don't we reach out to our volunteers to support these businesses owners.'

Support can range from answering questions about government and bank support packages, helping set up audio-visual technology for those now working from home to being a business mentor or supporting with well-being, Shortall said.

'If we all work to help one another, even if it's from our own homes sitting in our track pants, we can make a real difference during an incredibly tough time,' she said.