Successful business owners know the importance of maintaining accurate records and streamlining finances to take their business to the next level. However during this COVID-19 crisis it is more important than ever that you are across the following points to come out strong on the other side.
1. List possible impacts on your business, estimate financial impact, and develop mitigation strategies.
Start by listing all current and projected impacts. Attempt to quantify these and develop strategies to mitigate the consequences as much as possible. Communicate these to key stakeholders where suitable e.g. employees, suppliers, clients.
2. Increase your online presence
While people are increasingly confined to their homes, and restrictions are in place, online activity and purchases will increase significantly.
To succeed in this space, consider your online presence:
• Does your website explain your services & value proposition? Is it a good representation of your brand?
• Are you on social media (Facebook, LinkedIn)?
• Do you have a Google My Business page?
• Can you deliver services online?
• Do you use video conferencing software?
3. Put a contingency plan in place
Develop contingency plans for various scenarios e.g. how will your business manage if you or other key people contract COVID-19?
A plan will make your business more agile and minimise the effect of disruptions.
4. Talk to your suppliers
Can your suppliers continue to deliver required goods and services? Are they large enough to absorb the impact of COVID-19?
Consider making alternate arrangements as a backup, to ensure you can continue delivering for customers.
5. Identify employees with critical business skills
Can your business critical functions be performed by more than 1 person? Ensure you have back-ups trained should someone fall ill.
If not working from home, consider a split roster so critical staff are always available, and aren’t concurrently sharing the same workspace.
6. Keep an eye on your Key Performance Indicators
Graph and monitor your key measures of success daily, or weekly at a minimum. This will help you track emerging trends, and respond as fast as possible. E.g. debtors, total income, total expenses, sales, cancellations etc.
7. Act now to look after your cashflow Consider a range of options:
Ask debtors to pay early, invoice as soon as goods/services are delivered, explore payment extensions with creditors, cut unnecessary expenses, review employee contracts i.e. hours, wage reductions, sell or lease assets you don’t require, seek finance to increase overdraft facilities, consider government incentives, can you or other investors provide a cash injection?
8. Access COVID-19 government assistance
The Government is providing temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff and have been affected by the economic downturn associated with coronavirus.
Visit the visit the Australian Government website on www.business.gov.au to check if you are eligible and for more information.
9. Review your insurance
Speak to a qualified Insurance Broker to seek professional advice regarding your policy coverage and reviewing your risk exposure.
A broker can advise you on certain exposures which you may not be aware of, alternatively you may be paying extra on your current policy for cover you don’t need. Contact Reliant Business Insurance by Clicking Here if you would like to discuss your options with an experienced broker and arrange a free insurance review.
10. Financial hardship
Seek professional help early.
Can you pay creditors, meet tax obligations and make loan repayments? Do you have adequate financial resources to cover debts due over the next few months?
Reliant Business Insurance specialises in providing tailored insurance solutions to Business clients.
We deal with all the major Australian business insurers to ensure you receive excellent coverage and competitive premiums.
Give us a call on 0492 333 593 or email info@reliantbusinessinsurance.com.au for more information and see how we can help manage your insurance.