Be “Business Ready” for a lockdown
- Managing a Business
With the continued uncertainty across Australia, lockdowns and border closures have become a common theme of our new look world.
Once announced, a lockdown is implemented quickly – creating the storm before the calm as a city panicked and frantic in hour one, is dramatically reduced to an eery silence in hour two.
How does this impact business owners? As many have witnessed, if a business is not “lockdown ready” the financial impact can be massive.
A Brisbane restaurant owner recently revealed the massive financial hole the latest Queensland lockdown caused his inner city business. Announced on a Friday, the restaurateur was prepared for a full house weekend service, only to see instead over $10,000 in wastage and lost profits.
This final blow for the business owner has meant his restaurant will remain closed for the immediate future, revealing he had “no money left in the bank” to reopen once the lockdown had lifted.
This story is one of thousands experienced by businesses across Australia, and with no immediate end in sight, WA owners are advised to have an action plan should another lockdown be imminent.
An action plan financially and logistically prepares businesses for lockdown and ensures the recovery strategy is in place post lockdown. No matter the size of business or industry, being prepared is key to its rebound.
Pre lockdown action – key points
Understand your financial benefits
The state and federal governments continue to release assistant grants for those small businesses affected by ongoing lockdowns.
Recent changes to taxation laws on these benefits, as well as the frequent release of additional disaster relief payments and one-off benefits are all applicable to those businesses directly affected by a lockdown.
CLICK HERE to stay in the loop with all Small Business Development Corporation news, or to register for an assistance grant.
CLICK HERE to learn more about state and federal government support packages applicable to your business.
Optimise your business financials
Understanding where your business is at financially is key in preparing for the road of recovery ahead.
Knowing your true net position puts your action plan under an ‘honesty’ microscope – allowing for financial decisions to be made before a potential lockdown.
Speak with your accountant or financial advisor on the following:
- What financial strategies you could be implementing now to save money?
- Are you operating at optimum efficiency?
- Are your financial figures up to date?
- Can you access your accounts and figures remotely should there be a lockdown?
- Have your business growth strategies been reviewed to include lockdown scenarios?
Find out more about optimising your business operations and profits HERE.
Maximise the profits in your new look business
Post lockdown conditions mean restrictions in operations still apply – so embrace your new look business and prepare now.
Social distancing, customer numbers in a premises, office layouts and social wellbeing are a few examples of protocol for businesses post lockdown – so allow for these in future planning and strategize to ensure maximum returns are achieved while restrictions are in place.
It will also allow for you and your accountant to revise net profits, staff numbers and income in your new look space, and budget outgoings accordingly.
To maximise profits & fine tune operations in your new look business, review & plan for:
Staff flexibility and agility. Ensure your team is equipped to work from home and has the necessary means to do so (lap top computer, remote access, online training).
Back up suppliers. Sourcing these suppliers and having them on file should there be issues with your current supply chain or service provider allows your business to continue to operate with minimal delay.
Staff and customer wellbeing. Ensure all Covid 19 protocols and measures are followed for the safety of your team and the community.
Future work. Have the funds needed set aside for big projects, and plan for time delays should lockdowns come into effect. Give this action plan to your clients or customers so they remain confident in your business.
Protecting revenue. Take deposits for group bookings and review your business refund policy – income into your account needs to be protected, as does customer satisfaction.
Create a specific policy that benefits both the business and customer should a lockdown affect a scheduled event or job, and continually review it.
The technological shift. Ensure your business has made a move into the online space to keep revenue and operations flowing wherever possible. Move business meetings online, maximising the opportunities that are available to keep clients and customers engaged.
Invest in an E-Commerce platform, expanding your business to an entirely new market. Technology certainly does not replace your team, rather strengthens it, and is an essential element in any business lockdown action plan.
To discuss the financial strategy for your business talk to the experienced team at Elevate Accounting. Click HERE to schedule your obligation free chat with us today.