Protect your business against Coronavirus
EMMA BOWDLER
I’m a cheerleader for women and an accountant bursting with personality.
As coronavirus spreads throughout the world, many business owners are wondering what the effect on their businesses might be. Those in industries of tourism, education, manufacturing, hospitality and wholesaling are already seeing the fall out from coronavirus.
While many other businesses are expecting reduced sales, staff quarantines, and stock hold ups implementing a plan immediately will help to reduce any potential impact.
“Is there an Aussie made alternative?”
EMMA BOWDLER
Review your Supply Chains
If you import products from China, you are probably already seeing the signs of delays in stock. It could take weeks or months for your products to reach Australian shores and therefore your shelves. Communication is always key. Have a chat to your suppliers, find out what potential time lines might look like. That way, everyone is on the same page. Further, Is there an Aussie made alternative? If so, check it out. I am sure they would appreciate your business and happily accommodate. Remember, this is affecting them too!
Review Cash Flow budgets
There is absolutely no doubt, this pandemic will leave a big hole in the cash flow of many businesses. But to what extent? Nobody really knows yet. By reviewing your cash flow, cutting unnecessary spending (including stockpiling ridiculous amounts of canned goods and toilet paper), as well as reviewing your debtor and creditor terms will help identify where the gaps might be.
Communicate with Key Stakeholders
Honest and clear communication with all of your key stakeholders is vital in any business.
Employees are worried and job security is a very real concern for them. Open up the conversation and ask for their feedback on possible improvements or safeguards. Chances are, they’ll come up with ideas that you have not yet thought of.
If money is tight, consider speaking to your bank. Can they give you a temporary overdraft? Can they put you on reduced loan repayments? Ask the question, you’ll never know until you ask!
If you owe the ATO money for BAS or income tax, enter into payment arrangements. This will free up some of the cashflow to help you meet your other obligations.
“If money is tight consider talking to your bank”
EMMA BOWDLER
Your Engagement with Customers
If coronavirus affects how you deliver your services to your clients, it is important to let them know as soon as possible. If there is going to be a hold up on stock or you need to cancel certain services, let them know. Any reasonable person will completely understand.
If you do need to change the way you do business (like moving face to face meetings to zoom meetings), jump in and have a test run. Unreliable tech or applications you aren’t so familiar with will be frustrating for you to navigate if you’ve not had to do the online thing before.
Operational Disruption
Whether you have staff or not, it is important to consider how your business survive if you or your employees contract coronavirus? Can you or your team work from home? Do you have staff that are trained well enough to jump into another role if required? Use this time as a reflection process and see what you can put in place today should your business encounter disruption.
Be as prepared as possible
Make no mistake, Coronavirus will affect every business in some way shape or form. This isn’t about fear mongering or preparing for the worst. It is about being sensible and calculated. Being prepared and having contingencies in place will go a long way to help us ride out this wave.
Coronavirus will undoubtedly have long term effects on Australia’s economy. Show your support to other small businesses and buy from them where you can. Remember, we are ALL in this together.
EMMA BOWDLER
I’m a cheerleader for women and an accountant bursting with personality.
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Emma is an award-winning international entrepreneur, cheerleader for women and an accountant bursting with personality. She loves helping women kick some serious goals in business.
Emma is a Fellow of the National Tax Agents Association (NTAA), a Registered Tax Agent, and a Justice of the Peace in Qld with a Bachelor of Commerce in Accounting,