Business Survival During COVID-19
Article by Shaun Reeves
The impact that the COVID-19 pandemic will have on the community and on business, particularly the small and medium enterprise sector is concerning. There is the potential for significant business and economic effects that will last for some time. As business owners, we must focus on implementing strategies that are most likely to boost our chances of business survival.
As a business owner, there’s one key thing you need to totally focus on now – keeping your business alive during these difficult times.
The team at SRJ Walker Wayland have put together the following key areas that all businesses should consider to increase their chances of business survival during this crisis and rebound in the period following.
1. Cash – you must immediately start preserving and building cash. You should:
- Review all federal, state & local government stimulus packages to ensure you maximise these opportunities.
- Prepare a cash flow forecast for the next 12 months, month by month.
- Review the ATO tax relief options now available for businesses.
- Meet with your landlord/bank to discuss a reduction in your lease/loans.
2. Protection – review your asset protection to ensure the equity in your personal home and other assets are protected. Wills and Powers of Attorney may also need reviewing.
3. Banks & Funding – arrange additional bank funding if possible. Having this in place early is the key. It’s also important to reach out to your current lender to discuss possible payment deferral arrangements.
4. Employees – openly discuss the strategies in place for the business to survive and what this means for their employment. Ensure that policies are updated in line with these strategies.
5. Customers & Suppliers – keep them updated. If it’s “business as usual” let them know so they have peace of mind to continue purchasing or supplying. If it’s not, work closely with them to find mutually beneficial solutions.
6. Mental Health and Energy – look after yourself! This may be one of the most stressful times a business owner and employee may ever experience.
7. Information – there’s too much of it! Don’t get flooded, get updates only at controlled intervals and make sure it is from a trusted source.
The SRJ Walker Wayland team are here during to help businesses through these uncertain times. We have compiled a range of business survival resources that will provide further information on the Cash key point. If you require business advisory assistance, we can work together with you to put together a logical and practical plan for overcoming adversity.
We are also providing complimentary fifteen-minute meetings to discuss the COVID-19 support measures announced by all levels of government. Hopefully, this will help you maximise the levels of support received by the government to help you increase your chances of business survival.