Ok… so we won’t mention the C-word but what we will mention is how excited we are about the Government giving us the all-clear (apart from the sick) to go back to work. This week has been crazy within the financial sector as the government met to look at our economy and QLD announced a bid to buy Virgin blue and rescue them out of administration. There also has been a lot regarding COVID-19 safe practices, policies and things people are incorporating in order to go back to work safely. With all this news happening around us we felt it was best to give businesses the best possible chance at making a come back in this economy by offering you some sound advice. Here are our top ten tips for businesses returning to work within hard Financial Times.
1. List possible impacts and how they could affect your business going forward:
Start with a list of what could possibly impact your business and develop a plan for the future so that your business is future proof. Is your business not online? Get it online. Don’t have social media accounts. You need them. Make a list of all the things and the pro’s and con’s and how you can add feature’s for clients so your business can offer quality customer service and add value to your clients.
2. Access your super only if you are in dire need and the business is at a loss:
We have spoken about accessing superannuation before in a previous video. Accessing your superannuation should only be done if you are in dire need. But these are not normal times so should you dive into your super? If you’re experiencing financial stress, it’s now possible to withdraw up to $20,000 out of your super through two $10,000 payments: one before 30 June 2020, and another in the three months after 1 July 2020. The draw-downs are that the bottom line is that taking money out of your super will mean less money in retirement unless you play catch up later on and the issue with taking out your super is that you lose out on the potential interest and investment gains in the long term.
3. Boost up your cash revenues by coming up with new ideas for your pricing and terms.
Reviewing your current pricing structure and terms are vital to any businesses success as it will impact the gross profit of your business. Many people have been affected by the economy of late and reviewing your pricing structure and lowering cost will draw more consumers to you due to their own economic losses. Reducing overheads is also a good idea and reviewing your current financial plan for your business is paramount to drawing new clients to you as you can look at innovative ways to draw clients to you. Don’t forget to keep in touch with your suppliers and review your terms and conditions and see where they are in regards to their own business, as not everyone is up and running quite yet. The most important thing to consider is what is the best position your business can be and how can you make your business more resilient in the future through strategic planning.
4. Assess your spending habits and how you could reduce unnecessary spending.
We all have within us the ability to focus what is the best thing we can spend money on right now but what about the long term? Short term spending can lead to bad habits which grow financially over time. How many pairs of shoes do we really need in a pandemic? Covid-19 has really left us to question are our spending habits really necessary? We have mentioned before about spending but the one major tip we can give to you is to focus on what is important and the bare essentials such as shelter, food, money, education and water really help put things into perspective. Focusing on our families needs and listing what is necessary and unnecessary in a time of crisis allows our children to see that we don’t really need expensive things but we do need to take care of each other and have stability and consistency when it comes to our financial habits.
5. Check your eligibility for government assistance and government grants. Don’t wait for the government to help you.
Government assistance has been a little tricky to access during this time but if you can get through the pain and torture of waiting online and applying for the grants, time just may be the key to getting your foot in the door. There has been an overwhelming response to the government during this time of crisis on what to do in order to claim and apply for financial support and also grants which will help businesses to up to their online content to employing people you can find all this information and more here: https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business
6. Develop a range of scenario’s and what if’s
Developing a range of scenarios of what could happen not only in the pandemic but also what could happen if your business is affected long term can be tricky but not impossible. When you create your list, focus on not only the optimistic approach but also the worst-case scenario and plan around how financially you will be affected. We have a great team who can support you on your journey and we can help you develop your financial process to include all scenarios.
7. Build networks with other businesses and band together
Networking is one of our favourite things to do on the Gold Coast, we love meeting people who are entrepreneurs and think outside the box in regards to the current crisis. Building networks and meeting new people who can help you in your business can be important for your growth and your success. If you have a similar business you may want to think of how you can help each other when your tough position and don’t be afraid to reach out if you need help we love hearing from businesses who want to gain our perspective and advice.
8. Tax time is approaching is there anything important to consider?
Tax time isn’t it glorious? June is when the dreaded word tax comes into play but what changes
Do we have to consider in regards to COVID-19? Finding out what support is available including what to access is vital to your business’s health. You can visit the Tax office here and find out their many tips and support for business owners. https://www.ato.gov.au/general/covid-19/support-for-businesses-and-employers/ One thing to consider is the instant write-off From 12 March 2020 until 30 June 2020, the instant asset write-off threshold is $150,000 (up from $30,000) and this covers businesses who have a turnover of less of $500 million. If you’re unsure speak with a professional or accountant who can be your saving grace during tax time and review your tax benefits.
9. Look at your investments and develop a strategic plan
With the stock market falling rapidly and many businesses struggling to keep up due to cash flow it’s important to not lose hope in your investments but instead, review, strategize and plan forward. Remaining nimble and focusing on what is available in the investment world is what will keep your portfolio growing. Investing in good quality companies that have good balance sheets is key to any winning strategy. Recently the government has lifted restrictions on Pubs, restaurants and also the beauty industry so you will see cash flow rise in certain stages when the restrictions lift altogether. It’s all about what is need out there. Businesses have pivoted to sell products such as hand sanitisers at breweries, looking at ways on drawing in consumers and offering products that are needed most. Investors need to look at their portfolio wisely and plan ahead for the future, this pandemic won’t last forever.
10. Seek professional advice on how to move forward with your plans
At Oasis, we are giving back to businesses and their staff by offering a free consult and analysis during the month of June. We encourage you to seek us out and have a chat with us about your future financial plans. Creating a financial plan helps you see the bigger picture and helps you map out your goals. Fill out the form below and seek advice from one of our friendly team if you need some help.