What you should be thinking about this weekend
If there’s one thing that we have taken from this weeks’ events and government announcements, it’s that we are going to be dealing with significant uncertainty in the near future – we need to become comfortable with being uncomfortable.
What this means to us, is that it is now more important than ever to ensure that your business is as robust and agile as possible. This will allow your business to roll with the punches and jump on opportunities as they arise.
The business landscape is changing rapidly – we get it – so below we have collated the top five things that you need to think about today:
1. Understand Your Finances
Now is the time to update your financial forecasts for a range of reduced trading across alert levels. We now have the benefit of hindsight and the key is to get an intimate understanding of how your business’ financial position, in particular money in/ money out, is impacted.
From there it should become clear what expenses need to be dialled down as revenues reduce, and how much financial runway your business has if it operates at various alert-levels
If you do not yet have accurate financial forecasts – we strongly recommend getting in touch with your accountant to prepare these (if you are unable to do so yourself). If you do not have an accountant that can do so – feel free to contact us and we can refer you to someone within our nationwide network.
2. Wage Subsidy and Advice Voucher Schemes
The wage subsidy extension applications close on 1 September 2020 – should you reconsider applying for this if you’re now entitled?
If you have already used both wage subsidies - then the government has today announced a further nation-wide subsidy extension, with details to be confirmed over the weekend. We will provide updates as we hear more.
There is also an additional funding of up to $5,000.00 for eligible businesses under the Regional Business Partner Voucher Scheme. We are registered to provide services under this scheme, specifically to support your business advise through the impacts of COVID-19.
You can register for the Regional Business Partner Voucher Scheme here or contact us to understand what’s involved with doing so.
3. Build a Trusted Network
It is more important than ever that your business gets clear and actionable advice from reliable sources – either from trusted people within your network, or from third party professionals.
In our experience good advice is not expensive and should actually save you money by solving a problem and freeing you up to do what you do best – focusing on your core business.
The same cannot always be said for bad advice or a DIY approach (if you do not have the skills yourself), where cheap often becomes expensive – either through getting burnt by a wrong move, or spending productive time learning a new skill outside of your core business (yes, your time is hugely valuable).
It’s important that you feel those within your Trusted Network are more valuable to your business than a cost. These are the people that you should have on speed dial:
a. Savy Accountant – the value of an accountant is more than a ‘bean-counter’ – they should act as a general advisor with knowledge of all aspects of your business. If you feel that your current accountant is unable (or unwilling) to fill these shoes – let us know, and we can introduce you to a firm within our network that we know will.
b. HR & Employment – HR & Employment advisors (like us) are experts when it comes to all things employment, including changing staff arrangements to suit your business’ ‘new normal’. The reality is that the HR and Employment aspects of your business are increasingly technical and we see many (well intentioned) employers getting burnt by adopting a DIY approach to HR and Employee Relations.
c. Lawyers – can be useful if your work pipeline or operating costs (i.e. rents) rely on significant contracts.
d. Suppliers & Employees – open communications with key suppliers (landlord, key suppliers, banks) early and stay on the front-foot with communications – often they will understand where you are at (their business has likely been affected as well) and willing to help where possible. Landlords are also now required to come to the party with rent reductions during lockdowns (if your business is unable to operate) – your clever business advisor or lawyer should be able to advise on this!
4. Create & Review Transition Plans
It is now clear that New Zealand will not always be COVID free, and that Alert levels can (and will) change with little notice. You will have already implemented your level 3 (or depending where you are based, level 2) operating procedures.
Now is also the perfect time to review your operating procedures, before we shift alert-levels again. Think about what you did to operate last time, and how you would change or improve on those experiences.
Click here for some of our free resources on operating procedures in case you need some inspo or help on this, including our free working from home policy.
5. Look after yourself
If you are feeling anxious or overwhelmed by the challenges of another lockdown – you are not alone – we get it and in fact, most clients that we have spoken to this week feel the same way as you!
As an SME your business’ success over this period is dependent on your own well-being and capacity to deal with issues as they arise. It is important that you continue (or start) to look after yourself – often small things have the greatest impact, even starting with:
Sticking to a routine and scheduling your days using time-blocking or similar method;
Eating well and getting exercise – even if just going for a walk when answering a call or eating a piece of fruit with a glass of water;
Prioritising time for family and sleep;
Reaching out to other business owners;
Outsourcing work that falls outside of your expertise to your Trusted Network – this allows problems to be solved properly while you focus on your core business;
Taking regular breaks before it all becomes too much.
We are here to support you through this uncertain time, you can contact our team on 0800 HR FOR U.