Whilst the full impact of COVID-19 still remains to be seen, Coronavirus presents a significant threat to not our health but also our businesses in the Sydney business community. As restrictions continue to fill our news feed with the latest news on COVID-19, moves to flatten the curve are most likely to disrupt your business operations with anything from a decrease of sales for your products and services, labour shortages and supply change disruptions. Whilst many of us will continue to stay home instead of battle the once Sydney commuter traffic – what does this mean to your commercial customer base and how can you change your business to adapt?
It’s no doubt that with large numbers of people being asked to stay home, it will change the way we consume products and our purchasing habits. Self-isolation might just be the perfect time to spend some time looking over your business plan with attention to the risk management strategy to determine the best course of action to not only combat COVID-19 effects but also prefer for recovery mode. First things, first – how can we not only survive but thrive during this time?
RISK MANAGEMENT STRATEGY TIPS
- Are you up to date with the latest information and how you and your business may be impacted? Safe Work Australia has key informative up to date information on everything you need to know with the latest impacts to you, your employees and your workplace https://www.safeworkaustralia.gov.au/covid-19-information-workplaces
- Are you experiencing financial difficulty? Read the latest information on how the Australian government can help. The Treasury has released a series of government-funded initiatives to help Australian businesses during the COVID-19 crisis. For a full list of these initiatives and how to apply please click on the link here https://treasury.gov.au/coronavirus/businesses
- Make Informed Decisions by completing an internal audit of where you are at this point in time. Have you completed your financial statements? Keep them up to date to help you with making the best possible decisions in this very difficult time. A financial health check may help to determine how best to move forward and impact staffing needs based on product demand which can also determine overall business costs, leasing of premises, floor space ratio and how you can survive in this climate.
- What Is the Worst Possible Scenario and How Will It Impact You? Speak with your staff, your key customer base, and your suppliers. Whilst many of these factors might seem obvious Its at this point quantifying what the impacts are and how you can mitigate those impacts with possible strategies that may help to overcome these factors.
- It’s almost certain that many Australian businesses have an existing budget that may no longer be relevant given the current climate. Working with your accountant, take the list of possible impacts of COVID-19 you have developed to develop a new budget and include a decline of 50 to 80% in sales along with a supplier not being able to provide a key product for 6-8 weeks. Whilst this is not news any Australian business wants to hear, factoring these scenarios along with others may be what makes the difference in forward planning.
- Forward think to improve your cash flow. Now that you’ve completed the financial health check revise your needs for cash flow in the near future. Speak to your bank about your existing loan repayments and discuss short term loans during this time if you need an extra helping hand.
Above all, continue to connect with your staff and suppliers and stay healthy!
Duval Commercial Projects are Sydney’s office design and defit specialists.
Contact us to reduce your floorspace during the current economic climate.
Call 1800 308 661
Feature Photo by Kaleidico on Unsplash
