What does Alert Level 3 mean for your enterprise?
Under Covid-19 Alert Level 3 businesses will be able to open, if they can do so safely and without physical contact.
Some of the details may be a bit sketchy, but New Zealand businesses have been given a head-start on what Covid-19 Alert Level 3 looks like. Now’s the time to get ready, writes Guy Redding.
This week Prime Minister Jacinda Ardern ran through the revised public health and social measures for Covid-19 Alert Level 3. A decision on whether or not to move from Level 4 to Level 3 will be made on Monday 20th April, and is likely to come into effect two days later. (EDIT: The Government has since announced that New Zealand will more into Alert Level three at 11:59 pm on Monday 27 April.)
The PM described Level 3 as akin to a recovery room. The overall aim remains the elimination of the Covid-19 virus, so the messages from Government are still centred around staying home and keeping to your ‘bubble’ so as to limit physical contact with others as much as possible.
For many New Zealanders a move to Alert Level 3 will probably feel quite similar to Level 4, but thankfully there is room for some businesses to be able to resume activity if they can do so safely.
Moving from essential only to ‘safe businesses’
If New Zealand does move to Level 3 soon, many restrictions will remain in place. However, the good news is that many ‘safe’ businesses, including some social enterprises, will be able to get back to work. ‘Safe businesses’ are those that can:
trade without physical contact with customers
maintain social distancing in the workplace and,
have appropriate workplace hygiene and public health arrangements in place (for example physical barriers, and hand-washing stations)
Businesses involved in manufacturing, forestry and construction will be able to operate. This means that social enterprises operating in the B2B space should be able to restart provided they put proper public health measures and physical distancing arrangements in the workplace, and that physical contact with customers is minimised.
No to dine-in, but yes to delivery
Unfortunately, bars, restaurants and cafes will not be able to open, nor will retail outlets. This won’t be welcome news for many of our social enterprise friends out there. However, on the positive side, businesses providing food deliveries or “click and collect” arrangements, as well as those with drive through services, will be able to operate. This presents an opportunity for social enterprise food outlets to adapt their business models to taking online food orders and deliveries. Social enterprises with retail outlets should also consider switching to online sales and deliveries.
While primary healthcare services will continue to be able to operate, consultations should be done virtually and without physical contact wherever possible. Things are less clear for those providing services like physiotherapy, massage and disability support, but the general rule seems to be that non-urgent health and well-being services that require physical contact won’t be able to operate until Level 2.
Businesses that can offer contactless delivery will be able to operate under Covid-19 Alert Level 3.
Considerations for social and impact enterprises
Like many businesses, there will be a huge number of things for social enterprises to consider. The main point is that there’s now an opportunity over the next week or so to put in the groundwork so that your business is able to reopen if it can do so safely – either in its original or adapted form – when Level 3 kicks in. Here are a few things to consider over the coming days. It is by no means an exhaustive list – and the answers will be very different for different businesses – but these questions may help as you plan:
How can you ensure your business is visible to customers? Do you have a strong enough online presence to be visible to customers and, if not, what can you do to improve it? Can you step up your digital marketing over email and social media?
Does your website have the functionality to be able to receive and process online orders and payments?
Do you have the logistics arrangements and partners in place to be able to deliver online orders to customers?
Do you have the materials (e.g. packaging) required to move to a delivery rather than retail model?
Have you talked to our staff about going back to work or whether they will have issues with leaving the home (e.g. childcare)?
How can you upskill your staff to adapt to any changes to your business model?
Have you got in touch with your key customers to let them know that your business will be reopening once New Zealand moves to Level 3?
What arrangements can you put in place to ensure physical distancing and to meet public health requirements in the work-place?
Are you clear on whether your business can operate safely and, if not, take a look at the guidance provided by the Government. If necessary, contact MBIE for clarification as soon as you can.
If you’re struggling with cashflow have you spoken to your landlord about a rent reduction or rent-free period?
Have you considered what costs you can cut that are not essential to the business? (eg. subscription services you could pause)
Have you started mapping out various scenarios of the impact of Covid-19 on your business and then developing action plans to cater for these scenarios?
Moving from response to recovery
As time goes on and both central and local government shift attention to our economic recovery, we’re seeing signs that there will be opportunities for social enterprises to help design solutions to address some of the adverse effects of this crisis. We’re also seeing clear signs of the challenges that will be arising around issues like unemployment and mental health in particular. These challenges make the positive impact delivered by social enterprises more important than ever, with the potential to play a key role as our economy rebounds.
As always, the Ākina team is here to help you navigate your way through this crisis so that your business emerges intact. This may be by advising you on how your business can pivot in a new direction or to facilitate discussions with government on how social enterprises can help New Zealand recover from the crisis.
For more information, read the detailed breakdown Level 3 and the other three alert levels. You might also find this RNZ article useful.
Kia kaha and stay safe