Managing cashflow as the covid crisis eases

Posted on Thursday, May 28, 2020
For a lot of businesses, cash flow is very seasonal. You find a way through the lean months of the year in the knowledge that things will improve, and you capitalise on the stronger earnings when you get them.   That’s exactly how businesses should be approaching the current economic climate.   Earnings projections that you may have had back in January can be thrown out the window for most businesses, and as the government stimulus starts to roll in it is about making the most of your current cashflow, and being well prepared to come out of this well set for a post-COVID world.   But you need to be realistic as well. Don’t expect the same earnings that you got last year, and don’t expect that things will be back to normal for some time.   We already know that the government stimulus is designed to help out for a six-month period, so we know there will be more change coming in October when those JobKeeper payments cease.   The key to survival will be patienc ... Read the rest of entry »

Covid has taken us closer to cashless

Posted on Thursday, May 21, 2020
It used to be said that cash is king, but as we begin to plan for a post-Covid world, I say it’s time for a re-think.   Of the measures that businesses have put in place as social distancing came into play, the one that will endure will be contactless payment.   Tap-and-go has been around for a while now, but more than ever it has become an essential way of doing business.   We’ve already seen in the past six weeks that the PIN-less limit for tap-and-go has increased from $100 to $200, and I believe that could increase further to $500 or $1000 in the next six months as we move towards a cashless society.   That’s my number one tip if you are going to be going back into business: rely on the fact that tap-and-go is here to stay.   We have also seen numbers from the Australian Retail Association and Australia Post that show people are far more comfortable with online shopping and using click and collect to purchase their goods, than they were previously. ... Read the rest of entry »

Will the government wind-back Job Keeper early?

Posted on Wednesday, May 13, 2020
Once again, the confusion around the government’s Job Keeper stimulus package is sweeping around the business community, with some reports suggesting the program will be wound back early.   That’s despite the payments having only just started filtering through to businesses that have been planning for this stimulus package to keep their employees in a job and keeping their businesses functioning.   In my opinion, I don’t think the government is going to end the program early. We’re still only at the beginning of this pandemic, and the effects on businesses are going to be felt for a number of months to come, so this stimulus will be vital.   While more businesses will start to re-open their doors or add more services as restrictions are eased, it won’t be like flicking a switch and everything goes back to normal.   The government has said they will be reviewing the Job Keeper program in June, but I believe it will run its course through to Septemb ... Read the rest of entry »

Preparing for the new normal, and the grant opportunities you might have missed

Posted on Wednesday, May 6, 2020
Every week we’re getting closer and closer to some sort of normality resuming for businesses, and there are rumblings that some of the restrictions could be eased in the coming weeks to allow this.   What is important for businesses across the country now is to be as prepared as you can be, and one thing that a lot of people may have overlooked are the additional supports available at a state level.   With The federal government Job Keeper payments starting to flow in, it would be wise to check out some of the state grants that are also available, particularly for businesses in Victoria and New South Wales.   These were announced by those two state governments back in March, but were quickly followed by the Job Keeper announcement at a federal level, so many businesses may not be aware of them.   In essence it allows for an additional $10,000 one-off cash flow boost if you qualify by having an ABN for the past 12-months, turnover of less than $50 million, and a ... Read the rest of entry »

Getting back to business post-corona

Posted on Wednesday, April 29, 2020
We are now another week down the track of navigating the government’s Job Keeper assistance program and there are some important updates for businesses to be aware of.   The first is that a bit of common sense has come in for employers looking to access the assistance program, where they can lodge a claim for the program up until May 31 instead of the previously announced April 30. Good result.   The other good news that we heard this week is that maybe small businesses will be getting back to work soon. But it won’t be business as usual, it will be business post-corona.   I was speaking with my mechanic on Sunday, who opened his second shop just before Christmas, following huge growth in his business from better processes, honouring dealer warranties and more cars on the road from ride sharing. His business was going really well before the shutdown. He asked me what he should do marketing-wise as a small business at this time. Should he re-do all marketing plans?  ... Read the rest of entry »