06 Apr Surviving COVID 19
Surviving COVID 19
The majority of businesses will no doubt take some sort of hit to their bottom line because of Covid-19. While the Government have established a number of economic supportive measures, business owners need to be proactive and do what they can to adapt to the current situation.
It’s important to plan, not panic. If you take the appropriate steps, you will strengthen the ability of your business to be able to get through this.
Here are a number of initial suggestions regarding how you can be proactive in managing your business throughout this pandemic.
1. Have a clear understanding of your financial position.
You are only able to make informed decisions about your business if you are clear on your current financial position.
So many decisions regarding your ability to maintain staff, pay outstanding debts, pay for supplies, meet loan repayments, and even keeping your doors open (given present Government restrictions) are determined by this knowledge.
Cash flow is critical to the sustainability of any business. It may help to contact your accountant to discuss your options, and to assist in developing a plan to minimise the impact on your business.
2. Contact your bank
All of the major banks have implemented a deferment of loan repayments on business loans. If need be, such arrangements can also be negotiated on home loans and the like.
All financial lenders understand that these are unprecedented events, and that it is in both parties best interests to defer loan repayments and maintain a relationship throughout this time and beyond.
3. Register for Government assistance
The Australian Government has announced a variety of stimulus packages to minimise the economic impact of the Covid-19 crisis. A number of these relate specifically to supporting small business.
Familiarise yourself with the information at treasury.gov.au/coronavirus/businesses and register for any support relevant to your particular situation.
4. Communicate with all relevant parties
Whether it’s staff, debtors, creditors, suppliers, customers, or clients, be clear and transparent in all communications.
Let your staff know what you’re doing to maintain the business and their positions, as well as what you’re doing to ensure their health and safety.
Let clients or customers know if and when you’re open, if you’re working remotely, how they can contact you, and if you’ve modified the mode of delivery of your services.
When following up debtors, understand that these are difficult times for everyone and that you may need to establish a payment plan or negotiate terms.
Communicate with your commercial landlord and try to negotiate an arrangement which is manageable for you both.
Be as calm and clear as possible in all communications. This is a stressful time for everyone, and it is not the time to fracture relationships. We must all support one another through this.
5. Build supportive networks
Being supported and being able to keep some control over what is happening to your business is beneficial for your mental health and wellbeing. Stay connected to other small business owners, share ideas, and let’s all try to help one another.
We’ll be continuing to offer suggestions and support throughout all phases of this crisis.
Feel free to communicate with us regarding anything you feel would be beneficial for your particular business.