What’s next for businesses in Australia?
It’s been 3 months since I posted my article about Business Strategy tips in the COVID-19 environment, so what’s changed.
In terms of business returning to normal many would say there hasn’t been a large improvement across the board, however we know that there has been the partial lifting of restrictions, which has allowed some businesses to start getting the feet back through the door (in many cases literally).
So how does business strategy differ now compared to how it might have at on the onset 3 months ago.
- Issues for many businesses still exist – staff exposure, exports to and imports from impacted countries, specific industry impacts – we still have to ensure the safety of our workers and customers whilst in our business workplaces
- Did you have a business loan or credit cards that you chose to defer payments on – has the situation changed or improved – are you planning for the changes to your cashflow to meet those deferral commitments?
- What about rent – were you able to negotiate a reduction in rent or to defer rental payments. What was the outcome – waiver, deferral or a combination of both? When do you have to commence these repayments?
- Debtors – Have you expanded the payment methods on offer, or even offered instalment options for those who can’t or weren’t able to pay in one lump sum. You still need to keep that cash coming in.
- Have you protected yourself? Not just your physical well-being and health but also as a business owner/director to ensure that your business structure minimises your personal liability and that of your shareholders.
All of these points are just as valid in a non COVID-19 environment and may even form the basis of your business strategy going forward. So let’s take a look at a few points to think about now
- Cash flow planning – whilst deferring payments will assist in the short term, the long term effect is that the debt will be dragged out further. Now is the time to sit down and take advantage of some of the Cash Flow tools available in the various software packages, in order for you to start planning for the upcoming 12 months. This will allow you to identify periods where you may require additional assistance in order to calm the wild cash flow shortage seas.
- Take the opportunity to budget for the upcoming year – but then monitor your actual figures to your budgeted figures on an ongoing basis. This will help to identify areas of concern which could have an impact on your cash flow planing. However, it’s just as important to ensure that your budget is realistic
- Maintaining customer relationships – are you keeping in contact with your customers just to see that they are OK? It’s important to touch base with your customers to show that you care, but it also serves to keep you and your business front of mind with them.
It will be a long road to recovery. Are you emotionally exhausted with all that has been going on? How do you rejuvenate, recalibrate and recharge? Here are some tips I’d like to share from Keith Abraham on how to rejuvenate your emotional bank account – 8 ways to rejuvenate your emotional bank account
So keep safe, well and positive.