Now more than ever it’s important to have a practical and measured approach to your decision making. Actions you implement now in your business will have a huge impact on your future. We want to see everyone come through this, make their businesses stronger, and thrive on the other side. Here are some practical suggestions for what you can implement immediately in your business:
- Where possible go about business & life as normal – while ‘social distancing’ should be observed, it’s important that we all continue to support each other, and our businesses keep operating. Look at ways you can modify your interactions, engage in new ways, and still keep trade flowing.
- Support local – now more than ever we need to support each other in our local communities, keep businesses open and people employed. Review your suppliers and use local wherever possible.
- Review costs – review every single expense category on your Profit & Loss Statement, every transaction over the last 6 to 12 months. Where can you trim? What is necessary to keep your business operating? Call your suppliers to negotiate a better/new deal and/or payment options (I’m sure they’d rather have business than none at all).
- Review rostering & adjust where necessary – while no one wants to lose their job, reduced hours now might keep everyone employed in the long-run. Be open to staff working from home. Adjust trading hours to support changes in demand (e.g. with cafés only able to do takeaway, maybe breakfast demand will drop right off, but after work/pre-dinner might increase as people look for alternatives to the supermarket).
- Communicate with your landlord – remember that your rent is this person’s income (it’s their business), negotiate a favourable position for both parties.
- Communicate with your bank – look at the options around ‘freezing’ loan payments, but remember that the interest will capitalise on the loan balance during the ‘freeze’ period. Be careful of increasing debt levels, but the very low interest environment may provide great opportunities for investment. The lowering of interest rates is also a great reason to ask your bank what they’re doing on the interest rates on your borrowings.
- Be prepared to be asked for new deals from your customers – as with your suppliers, you’d rather business than none at all, but be careful of still making money and covering your costs.
- Know your breakeven point – after reviewing all of your costs, work out your breakeven point (we can assist with this). Breakdown the sales required to monthly, weekly & daily so you know your targets and can track ongoing – making adjustments as needed to hit those targets.
We are here to help, the majority of our staff are now working from home, but we are all setup and ready to help you when and how you need it.
We will continue to keep you up to date with the latest information and details from the Government and other agencies.
Contact us today to see how we can best assist.