1. Build and save cash reserves

    Depending on your situation you may not be in a position to build cash reserves. In this instance it is important to save what you have.

    Have you reached out to your landlord, suppliers and bank to defer payments?

    Measures have been put in place at a federal level. These measures allow for up to 6 months deferral and some are already being extended.

    Who owes you money? It’s better off in your bank account than theirs, so hit the phone and chase up outgoings, it all adds up!

  2. Cut unnecessary spending

    Are you familiar with the concept of ‘lean’? This should also be your money mantra moving forward.

    It’s time to take a good hard look at the balance sheet and while it may be confronting, it’s better than burying your head in the sand!

    If we are forced back into shutdown, what does that look like for you?

    How much will you earn, how much do you need to survive and how long can you sustain it for?

    Which repayments are necessary and which can wait? Actually creating a list will help with clarity if the situation arises.

    If you are carrying inventory, you could look at running stock down and stretch out payables (without creating supplier frustration).

    Which repayments are necessary and which can wait? Actually creating a list will help with clarity if the situation arises.

    If you are carrying inventory, you could look at running stock down and stretch out payables (without creating supplier frustration).

  3. Reconsider your staffing requirements

    There are two things to consider here:

    If you are experiencing a reduction in business or turnover, then do you still require the same number of employees?

    Could account managers look after more clients? Can a reduced sales team handle more leads per head? Keep in mind everybody is hurting and as long as you communicate with customers they will understand.

    Maybe it’s time to rip off the bandaid, roll up your sleeves and get back to basics, nobody builds culture like a business owner. This way you are saving money and ensuring retention of customers during these times.

  4. Apply for relief

    If you believe you are eligible for a relief program, apply for it. Every dollar counts, especially if you need to enforce a second company shutdown.

    ATO services have seen a backlog in recent times. Have your plan in place and trust that it’s better to not need it, than to not have it!

    Services are available here:
    https://www.ato.gov.au/general/covid-19/

  5. Develop and grow new revenue streams

    If your business was lucky enough to develop an alternative revenue stream during the pandemic, consider investing in the growth of that new direction. For others who have not yet found an alternative source of income, it’s time to think creatively. What do your customers need right now, and how could you fill that need?

    Have you thought about a referral program or perhaps an online offer?

  6. Review your supply chain

    If you have diversified into other revenue streams, then ask if they are maximising the opportunities?

    • Would an alternate brand offer better margins, payment terms or any other tangible benefits?
    • How will this current situation affect supply now and into the future?
  7. Maintain remote work capabilities

    The time is now to evaluate what worked and what you need to improve in terms of online business and remote work.

    • Can you forward emails and phone calls to someone offsite?
    • Do you have a sales person and how are you monitoring their activity?
  8. Communicate with employees and customers

    We are all in this together and people are understanding, you just need to communicate.

    Just like a good investment, doing it will pay dividends!

    Whatever your unique situation, it is critical to develop a contingency plan. Even if another wave of business closures don’t materialize in your state, you will be well positioned for any other unforeseen crisis, such as natural disasters or social upheaval.

  9. Stock up on essential supplies

    Remember the great toilet paper/ hand sanitizer shortage of 2020?

    For the unforeseeable future you will be required to maintain heightened sanitation.
    We cannot rely on the typical supply chains, so stock up!

  10. Track the developing situation

    Track the developing situation