COVID-19 has had a massive impact on Australian businesses and the economy.
Due to this, there has been a number of important financial lessons that your business can learn from to ensure ongoing success and prompt recovery.
The importance of contingency planning
COVID-19 has highlighted the saying ‘those who fail to plan, plan to fail’. It is important to plan for scenarios where your business will have restrictions on how it can operate or whether it can even operate at all. This is known as contingency planning.
It is critical to have effective short, medium and long-term contingency plans in place to minimise impact of business disruptions.
Have a financial cushion
Businesses that had a financial buffer have found it easier to survive during the COVID-19 restrictions than those businesses that did not.
It’s important to have a robust cash flow that isn’t dependent on just one source. Your business should ideally have multiple online and offline revenue sources. If one or more streams are disrupted, others may be able to compensate.
Having alternative revenue streams
Businesses that were able to create or switch their focus to alternative revenue streams or business models generally fared much better than those who couldn’t during the COVID-19 restrictions.
If your business was not agile enough to adapt quickly to the COVID-19 environment, you should consider ways that you can make your business operations more flexible
The need to adapt technology
Businesses that were able to efficiently use technology and labour-saving automations, such as cloud infrastructure, online ecommerce sales and digital operating systems to enable remote work, generally managed better during the COVID-19 lockdown.
If you have a small business located in Dalby, Chinchilla, Warwick or other surrounding regional Queensland areas the Government is currently offering a Small Business COVID-19 Adaption Grant Program. Eligible businesses can be funded up to $10,000, to put towards implementing digital or technological strategy development, digital training to up-skilling employees or you require specialised digital equipment.
It is important to continually develop and be responsive. If you have infrastructures in place, it will enable you to react quickly to deal with any sudden challenges or changes. Our experienced team of business accountants at Moore Lewis & Partners can provide you with finance and lending strategies, software solutions and budgeting and cash flow forecasting.
If you would like to talk to our team about how we can help, please contact our team by clicking here or phoning 4638 5300.