The Link Between Money And Mental Health
Lockdowns around Australia have eased but restrictions are still in place to keep the unprecedented COVID-19 pandemic at bay.
Both are affecting many of our nation’s small businesses, with experts predicting there will be a tidal wave of insolvencies when JobKeeper ends in March. And if that’s not enough to worry about, small businesses managing to survive the disruptions.
to their business could be damaged by zombie companies still trading because the Government gave directors temporary amnesty (ending on December 31) from insolvent trading claims. One of Australia’s top liquidation experts,
Brendan Nixon, a partner with SM Solvency Accountants, warned that businesses needed to bolster their credit assessment of both new and existing customs to ensure they will get paid.
Here’s a checklist to help you COVID-proof your business. And if you do end up in trouble, you are not alone – the expert insolvency firm can liquidate your business through its easy to use, cost-friendly and unique digital solution.
How to COVID-proof your business
- Make sure your new and existing customers have the capacity to pay for supplied goods and services. Some companies are already insolvent, but in the new year creditors will be able to apply for liquidation court-orders – which means you may not get paid what is owed to you.
- Check how much profit your business is making. There needs to be a constant revenue stream and steady profit, even if it’s small. You should have the capacity to attract new customers without offering big discounts.
- Is your industry stable? You must be able to compete with new and competing trends in your industry. Make sure you are working towards some sold post-COVID projects.
- You have a good relationship with a reputable finance facility in case finances become tight, and you keep solid financial records which are up-to-date.
- As well as keeping your existing customers you have the capacity to attract new clients, giving you many options to generate fresh revenue.
- Write a business plan which outlines your goals and future projects for this financial year and the next, looking at the economic climate, cost of staff and a possible increase in the cost of your product.
- Keep marketing your business as post-COVID many new and competing businesses may spring up, particularly those in service industries with low over-heads like beauticians. Make sure your website is up to date and you are across key SEO words to attract new customers.
- Remember, cash is king! Keep your expenses low and boost your cash balance. It’s not the time to pour all your profits back into your business or spend wildly.