As a business owner, in this current economic climate, you should be asking yourself a few questions to assess whether your business will be viable once all the COVID-19 Stimulus Packages and financial support come to an end. Below are 8 essential questions to help you make those all important decisions regarding the future of your business:
1. Cash Flow: What is your cash flow situation like now and what will it be like after stimulus ends?
Do you even have a cash flow forecast? It’s such a valuable tool that every business should utilise on a weekly basis.
2. Revenue Streams: Will your revenue streams recover and are there opportunities for new streams?
Now is the time to reinvent your business, look at opportunities to improve efficiencies, change your habits, how you can better market your business and how you can help others to change – get people talking!
“Don’t be afraid to think differently.” – Mark Bouris https://www.facebook.com/MentoredAU
Follow this video link for more on what our favourite Mentor, Mark Bouris, and Blair James of Bondi Sands have to say about innovation, being creative and questioning the way things are done!
3. Staff: Can you afford to keep staff on post-JobKeeper?
Many businesses will not qualify for JobKeeper 2.0. How will your business survive? Can you be sure that your current employees will remain engaged and active in your business if you no longer qualify for the rebate?
4. Deferred Liabilities: Can you meet deferred payments (e.g. rent, mortgage)?
Did you defer any credit card instalments, rent, loan liabilities of the business that you will be responsible for, come October 2020? These need to be added back into your cash flow forecast.
5. Tax Obligations: Do you have money to pay tax when it falls due?
Have you had your 2019 income tax debt calculated? What about your 2020’s? Although 2020 is not due until May 2021, some forward planning can help you be more prepared. Don’t forget the cash flow boost will also finish in September 2020. Many businesses who employ staff have relied on this to reduce their GST obligations.
6. Superannuation Guarantee: Do you have enough money to meet the next Superannuation payment?
The Superannuation Guarantee Amnesty ends on 7th September 2020. By registering with the ATO before this date, you will not be penalised the Part 7 penalty or admin component for any overdue Super payments. Any payments made after 24th May 2018 and before 7th September 2020 are tax deductible.
7. Worn out/no mojo: Do you want to hang on or have you lost your passion for the business?
What better time than now to reassess: What do you want? Do you still have the drive and passion to make your business succeed, to stand out from the crowd? If so, ACT! A business coach is probably one of the best investments you can make for yourself. If your mojo has run away, look at other opportunities available, contracting, freelancing, becoming an employee again!
8. Personal Guarantees: Are your personal assets at risk (e.g. personal savings, house, car)?
If you are a sole trader, or a director, these days your personal assets can be at risk of repossession for non-payment of business liabilities. For more information, have a look at Australian Securities & Investments Commission (ASIC). If you feel that your business is trading insolvent, please take the first step in speaking to an insolvency specialist. Things may not be as bad as they seem (and the Insolvency Specialists aren’t all that bad either!)
As with so many things at the moment, these aren’t necessarily easy questions to ask yourself, but will definitely aid you in making decisions for the future of your business. Should you find yourself confused and unable to answer these questions, we are always happy to help!
At SYM, our Dream Team has the tools and experience to guide business owners to efficiently streamline the running of their business. Please reach out if you need some support!