We know you have spent the last few weeks and specifically this weekend thinking about how the pandemic will affect your business.
As of last night, your thoughts will have become more serious and turned to how it will affect your family. The stakes got higher and normal behaviour is no longer possible (unless you are an Ostridge)
Whilst the impact on every business and family will be different, there is now no way of avoiding that the minimal impact will be profound and the highest impact potentially catastrophic.
Regardless, you need to act now and we are here to assist.
Whilst remaining positive and resilient are critical, you need an economic plan to back up your health behaviour.
YOU MUST REVAMP YOUR EXISTING CASHFLOW PLAN NOW.
Whilst the length of time and level of impact is unknown, it will become clearer as time moves on.
If you are going to survive you need a plan and to be monitoring it regularly. You will need help from your bank and they will be more accommodating knowing you have a flexible plan.
Accordingly these are the steps EVERY CLIENT needs to take, and if you need help, please call out.
A. Get an accurate up-to-date set of financial statements.
B. Prepare a Cash flow with varying levels of Income and Expenses
- Prepare scenario’s on Income reductions
- Look at your variable cost.
- Specifically staffing.
- Review every expense item
- Speak to your landlord about a rent reduction (50% for 3 months or until income returns to current levels)
- Your insurance needs have decreased due to the reduction of business and risk eg Workers compensation
- Remove Non-cash items (Depreciation)
- Understand and allow for government assistance
- Review your funding requirements
- Interest savings
- Structuring your debt
- Asset acquisitions (Total tax deductibility)
- Connect with your bank
- Home loan interest deductions
- Business loan Interest deductions
- Repayment deferrals
View the Bank Assistance proposals here
REMEMBER the bank will be approached by every one of its clients.
If your approach is to be successful, you must demonstrate control, and measured management. Conducting the above strategic thinking will demonstrate these necessary attributes.
The threat of this pandemic will terminate, and I am betting as quickly as it arrived in Perth due to our isolation and lagging the world in statistical damage.
In order for you to survive and return to normality quicker it is critical you have a flexible plan, are identifying and dealing with the threats, and nurturing the opportunities for when we emerge from this time to a completely changed business landscape.
Is your business going to be a resilient survivor or a causality?