As the COVID-19 situation continues to evolve, it’s important for small and medium businesses to have a plan to deal with the fallout from the virus.
GTC Financial has put together some tips to help you manage the risks to your business:1. Review cash flow budgets. You need to know in advance what impact a reduction in sales will have on your ability to meet your obligations e.g. paying suppliers, employees and debt.
2. We can help stress test your business using different scenarios so you can understand the impact of changes ahead of time.
3. Develop a continuity plan for your business and consider the following:
- Reduce your cash flow cycle. Speed up your revenue by invoicing faster and following up debtors. We can help you implement technology to get your cash in faster.
- Slash overheads by looking at your business expenses and reduce discretionary and non-essential items.
- Defer cash out flows by talking to your suppliers, landlord and the Tax Office. Talk to us if you’re not confident doing this yourself.
- Take advantage of the Government COVID-19 stimulus packages available. Follow our email blasts, if you belong to an industry body check with them to see what you might be entitled to.
- Take the time to understand your employer obligations.
- Review your business interruption insurance.
- Develop new revenue initiatives and increase exposure through various marketing platforms. Now’s not the time to hide in your shell.
- Timely and honest communication with all key stakeholders including employees, customers, suppliers, bank and the ATO. Get on the front foot with this, but make sure you have all the information you need to support your case.
4. Keep up to date with information from a reliable source like the World Health
Organisation (WHO) and Australian Government websites.
5. Working with your trusted advisor, such as GTC Financial is vital in creating the best strategy to see your business through the coming months.
At GTC Financial we know that small and medium businesses are often hit the hardest by these events, that’s why we have developed mini strategic planning sessions specifically for small and medium businesses. Our goal is to work with as many businesses as possible to help them stay viable through this period of disruption.
You are not alone, GTC is here to help. Call us now to book your strategic planning session.