Top 10 Tips to COVID-19 Proof your Business

We are in unprecedented times, and the uncertainty is causing a lot of stress for business owners.

Here are our TOP 10 TIPS to prepare your business for what’s to come.

1. Be prepared - now is the time to prepare for how your business will respond if we are faced with certain scenarios. Every business will be affected differently, so we urge you to take the time to think through what you will do if the actions taken in other countries become our reality in Australia. Think about how you can flex your workplace to prepare for a quieter period. Can you cross-train your staff to help in other areas of the business?

2. Talk to your main suppliers - we may not realise that our product or service relies on parts or components from China and other countries affected by the virus, so understanding your supply chain is a critical first step.

3. Explore alternative suppliers - if your business relies on a supplier from an affected region, now is the time to seek alternative suppliers.

4. Develop a contingency plan - have a plan to deal with disruptions to the supply of your products and services. You may need to scale back production for some parts and stock.

   Rethink your marketing strategy and how you can change customer behaviour until the crisis passes. If you're in the hospitality industry, are there ways you can implement Uber Eats into your business? There is going to be a lot of demand for laptops, phones and iPads as businesses set up for their employees to work from home. If you need some more tech in the business, look at getting this ASAP. 

5. Review Cash Flow Budgets - you need to know in advance what impact a slowdown will have on cash flow. For example, review and adjust your cash flow forecasts to determine what effect a reduction in sales will have on your ability to pay suppliers and repay debt. We can help with this.

6.  Keep up with your financial reporting - ensure that your financials are kept up-to-date so that you monitor profitability, stock levels, and debtors and creditors balances on a timely basis. Now is the time to send those invoices and receipts through to Receipt Bank!

7. Communicate with key stakeholders - honest communication with your customers and suppliers is important. Customers need to be made aware of any issues with the delivery of your products and services and what contingency plans you have in place.

8. Think outside the box - renegotiate payment terms with suppliers if necessary and talk to your bank if you are unable to meet your loan commitments. Review your debtors and, if necessary, offer discounts for early payment. You could look to seek extensions from your landlord if you are unable to pay the rent on time, as well as consider entering into payment plans with the ATO for BAS and tax debts.

9. Slash overheads - look at all the costs of your business and reduce discretionary and non-essential expenses. Fixed costs such as wages, rent, utilities, financing costs and tax liabilities are not affected by a decline in sales and need to be properly managed.

10. Seek advice today - it’s very important for small businesses already impacted, or likely to be impacted by the coronavirus, to seek timely professional advice – don’t sit back and hope this will all go away soon.