Liverpool reaching the Champion’s League Final could bring millions to the local economy and the region’s firms should act now to ensure they take full advantage, writes Glenn Bemment, regional director for Lloyds Bank Commercial Banking in the North West
Businesses across Merseyside celebrated when Liverpool FC reached the Champions League earlier this month, regardless of whether they are a fan of the Reds or not.
This is because the University of Liverpool has previously revealed that reaching the final could provide a £25m boost to the regional economy. Consumer-facing companies are set to benefit immediately, from bars and restaurants wanting to capitalise on the increase in footfall to shops selling memorabilia in the run up to – and potentially after – the game.
There is also potential for hotels and tourism related businesses to benefit from the influx of visitors in the year ahead, as reaching for the final means that they are guaranteed a place in next year’s competition.
On the night of the match against Real Madrid, many of these businesses will be looking to capitalise on the spike in demand as fans flock to the city to soak up the atmosphere and watch the game on the big screen at Anfield or at one of the many locations planning on showing the match.
But, like Jurgen Klopp and the team, firms should be preparing now to ensure that the big night is a success, paying attention to whether they have a good range and supply of products, an effective marketing strategy and sufficient cash flow to take advantage of the opportunity without overtrading.
To invest in their business within such a short time frame, businesses need to ensure that they have sufficient working capital available. This is essentially assets before they are turned into cash, such as stock or unpaid invoices.
Liverpool may be on the edge of European success once again, but planning now can ensure that all Merseyside businesses emerge as victors on May 26 – regardless of what happens on the pitch.