Since Coronavirus (COVID-19) was declared a pandemic, the magnitude of the crisis continues to have flow-on effects not only to our everyday lives, but to the future of many businesses. However, history has shown us that great and iconic companies have been launched during recessions. For example, General Electric (GE) was founded during the panic of 1873, Disney started during the recession of 1923 - 1924, and Microsoft during the recession of 1975.
So is there a way to turn this current economic turmoil into an opportunity for your business?
Can you pivot quickly?
Whilst it is impossible to fully scope the impact of COVID-19 at this point in time, businesses that address the issues head on through contingency planning, while at the same time focusing on new opportunities, will be far more likely to create resilience and be able to weather not only this, but any storm.
Are there opportunities for you to change direction of the business? Even a slight change in direction. There are lots of shortages of goods and services currently, can you produce something that is in high demand? We are seeing the closure of all restaurants, however, those that are offering takeaway (even if they didn’t offer takeaway before) is the perfect example of pivoting. Fruit and veg shops are delivering locally where they didn’t before. Companies that supply restaurants are starting to offer delivery services for consumers. These are companies that are looking at where there is a need and how they can fill that need even if it isn’t part of their normal business model.
This is actually a massive exercise for companies on being creative, dynamic and flexible. Businesses are being forced to push these new initiatives through faster than they would in an normal environment and it can be a great way of demonstrating how quickly you can get something to market rather than being weighed down with logistics and red tape.
How to revive your business on the other side of COVID-19?
Continuous news and uncertainty about the COVID-19 make it seem like there’s no future for your business. It’s hard to see past this moment and while it’s true that none of us have lived through this kind of global pandemic, a lot of Australian businesses affected by recent bush fires know what it means to face a disaster, gather resources, and push through it to the other side.
While this will definitely have lasting short and long-term economic damage, the initial issues caused by the COVID-19 and business lockdowns will end at some point and for many businesses they will go back to business as usual. So how do you recover on the other side of COVID-19?
- Plan your Business Recovery
If you have not already done so, start preparing your cashflow model. Do some brainstorming on some different scenarios that might happen and then look at how that might impact the business finances and people. It's imperative by now that you have a long view Cashflow forecast in place that deals with both good and worst-case scenarios so you are ready to react swiftly.
You may decide to do more then one cashflow. We think it’s important to have at least 3 scenarios that map out to at least February 2021 your worst case to best case scenarios.
- List all current and possible impacts on your business, estimate the financial impact and develop mitigation strategies
Start listing what the impacts of COVID-19 are on your business at this point in time, but do some informed projections for the future impacts as well. In listing those impacts, attempt to quantify what impact it will have on your business and identify possible strategies to mitigate.
- Maintaining your Cashflow and making sure you're well informed of all Government Stimulus
Look at what you need to do for the next 6 months to reduce expenses and gain income in order to ride out this period. Get rid of all non-essential spending and if you haven't already speak to your Accountant, they are your lifeblood right now and can help you take advantage of the Government Stimulus Packages that have been released to help you with cashflow over this period.
- Look after your most valuable assets
Your people are your most valuable assets. It is so important that your employees and the flow on effect to their loved ones feel supported during these difficult times. You need to ensure that you maintain good will with your team so that when we start to come out on the other side of CoVID-19 you have strong team to help you recover. Your actions will be remembered and stand out for years to come.
We understand that this is a challenging and confusing time for business. Get in touch if you want to discuss how to navigate your business through these uncharted waters. Azure Group team are committed to working smarter and faster in helping you take advantage of the Stimulus and financial assistance you need to keep operating as best you can.
COVID-19: How to motivate your team while working remotely?, published May 18, 2020
Expanding globally during COVID-19: Risky business or perfect timing?, published May 07, 2020
Cashflow is a lifeblood of your Business, especially during a pandemic such as Coronavirus, published April 22, 2020
COVID-19: What does 'Standing Down my team' mean to my Business?, published April 16, 2020
JobKeeper Payment: Eligibility Rules have been released! Who is Eligible?, published April 15, 2020
Working from home during Coronavirus: What expenses are Tax Deductible?, published April 9, 2020
COVID-19: EMDG extra funding of $49.8 million to help Exporters, published April 7, 2020
Startups and Scaleups: R&D Tax Incentive FY2019 deadline extended due to Coronavirus, published April 6, 2020
What is the difference between JobSeeker and JobKeeper? Do you know what you're eligible for?, published April 2, 2020
JobKeeper Allowance: New Government financial measure as a response to COVID-19, published Mar 31, 2020
Should you do Business Planning during CoVID-19?, published 27 Mar, 2020
A second CoVID-19 Stimulus for Businesses, published Mar 24, 2020
Financial relief for business experiencing difficulty due to CoVID-19 and State Government Support, published Mar 21, 2020
What are the benefits of Coronavirus Stimulus Package for businesses?, published Mar 13, 2020
Have you noticed our #FridayExpertTips... here's one that relates to #COVID-19: Cashflow Forecasting
"There is no denying that COVID-19 will have lasting short and long-term effects on the economy and your business. It's imperative by now that you have a long view Cashflow forecast in place that deals with both good and worst case scenarios so you are ready to react swiftly."
This information is accurate on the day it’s published and is subject to change as the situation around Coronavirus (COVID-19) evolves. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.