The Business questions you need to answer to get through the COVID-19 crisis
The COVID-19 crisis has forced a huge downturn upon businesses.
Through no fault of their own, business owners are now being forced to make decisions about what can be done to give them the best chance of weathering this storm.
Sinclair Wilson’s Business Advisory division, which has experts based in Warrnambool, Camperdown, Colac, Hamilton and Mount Gambier, has been working with clients for weeks to help them prepare, or identify ways to manage their business through the crisis.
We encourage all business owners to consider the following aspects of their operations before they decide what measures to take to see out the COVID-19 downturn.
Before you decide anything, ask yourself – or contact your Accountant to discuss – the following questions:
Analyse your revenue/sales
- Is there other business channels you can look into, or use to boost your sales or revenue? Eg: is selling your product/s online an option?
- Have you looked into what kind of promotions might be available to generate a spike in sales?
- Contact your loyal customers or clients – communicating with a database of clients or customers might ignite an increase in sales
Look at your expenses and fixed costs
- Speak to organisations like your bank, landlord and Government authorities, even your Insurance provider, your internet provider, or telephone provider, about what fixed costs you may be able to defer, suspend or re-negotiate.
Look into Government assistance
- What’s out there in Government assistance that might help you through this period? There are many stimulus measures already announced. Sinclair Wilson’s Business Advisory division is across what these mean and how it applies to your business, depending on its structure or operations. Contact us to find out what your business could be eligible to receive.
What are your employment costs?
- Have you considered how you might manage employment costs? There are various options available if you find the business cannot support paying wages through the crisis. The recently-announced JobKeeper payment is just one of them. Be mindful that these options come with a lot of conditions – best to speak with an expert to ensure you are across your obligations. Sinclair Wilson has a HR & Payroll Division that can ensure you have the right information at-hand before you decide what to do.
Other things to consider
- What will be the cost of shutting down your business? Can you afford it?
- What will be the cost of reopening your business? Can you afford it?
The goal for every business in the short term is survival. As we are forced to adjust to this new normal, businesses need to make decisions that will give them the best opportunity to ride out the downturn.