The Planning Starts Now
As restrictions are easing in WA, we can see a glimpse of economic hope. It’s now time for businesses to prepare for the end of Government measures; including rent or loan relief and JobKeeper payments.
From our DFK ANZ COVID-19 Business Indicators report, we found that 87% of respondents intend to keep at least some of the changes they made during the pandemic.
With Phase 4 in full swing in WA, you can continue to get your business on the front foot financially by reviewing and analysing your operational activities.
Many of our clients are undertaking (or asking us to assist) in the following areas:
- Completing Financial Modelling
Every business owner knows their bank balance but what good will that do if you don’t have a cash flow plan in place. Cash flow is critical and essential for managing the significant changes that we anticipate when JobKeeper ends 27 September 2020. This is regardless of whether you are in receipt of JobKeeper or your clients/customers are. Is it time you start building financial models and scenarios to ‘sanity check’ revenue and spending options.
- Conducting Scenario Planning
What if you change XYZ expenditure? How about if I sell more of this or less of something else, what do the numbers look like then? We have tools and techniques to help with this, please contact us.
- Rework Processes
Our recent COVID-19 Business Survey highlighted that only 13% of businesses intend to go back to “the way things were before”. Most are looking to better utilise tools, technology and eliminate inefficient processes. Taking time to review your processes and procedures could ensure your business is in a stronger position to get back to “normal”. It is also a great time to discuss communication requirements going forward. Evaluate which technology and apps were taken up by your staff and/or clients better than others. Determine what the communication between teams will look like in the future. Ensure you also consider how clients and customers are communicating with you.
- Improve Your Customer Experience
How can you improve the way you provide a service to your customers? Is there anything about your business pre-COVID that left customers frustrated, bored or leaving you for a competitor? Work on improving your engagement with customers and look forward to them coming back time and time again.
- Consider Your Marketing and Advertising
One of the biggest problems people have with marketing is finding the time to do it all. While you are using the safety net of JobKeeper and other Government initiatives, rework your team to focus on your marketing. What can you promote to your customers? Are you connecting with them? There are some great and often inexpensive ways to target customer groups and gain traction.
- Get Your Staff Structure Right
Did your team work from home? 76.4% of businesses said the COVID-19 experience would encourage them to continue offering flexible working arrangements. A further 49% of businesses told us they relied on JobKeeper during this time. As you ramp up your business for the new way forward, it is also timely to look at things from a people management perspective. Are you able to utilise the new clauses within the Fair Work Act and Awards to support amendments to your staff structure, personnel changes or reduce annual leave accruals? Now is the time to review your organisation chart, position descriptions and contracts and consult with your people.
As a final note, we are anticipating banks will provide finance opportunities to businesses they believe are worthy. If you have red flags or perceived red flags, don’t expect red carpet support from your banks. The banks will be looking at your pre-COVID-19 business and determining your ability to trade strongly and repay. Red flags would include poor cash management, falling revenues, small margins and increasing debtor days.
Want to know more? Please visit our website to see recent updates or call us on (08) 9327 1777 and we can discuss your business needs in detail.