Page 2 - The Alp McNamara Downturn Survival Kit

2
Hunkering down
After two months, most business owners have implemented the first stages of their COVID-19 survival plans. The size and speed of the shutdown of the world economy is unprecedented. The impact of the measures taken by governments everywhere will be felt for a generation.
It is that significant.
For business owners, survival begins with the basics. Perhaps by way of a short checklist, we mention some key steps below:
1. Take stock of your new world.
Cash is king. Not often do you hear accountants say not to worry too much about profit (well, just for now at least)
• Downsizeorrightsize.Whatcanbescaledbacktomatchcostsmore closely to lower revenues. Consider reducing hours especially face to face. Closing the door may be the best choice.
• Negotiatehard.Whetherrent,leases,terms,buyprices,sellprices, staff hours and costs. Remember that waivers are permanent, but deferrals must ultimately be repaid.
• Refinancenow.Bankshavetakenasupportivepositiontohelptheir clients refinance their borrowings. Right now, they are accommodating but should their rate of default grow, they may have less capacity to help.
2. Take every subsidy
The Australian and State governments have been more generous than almost any other country in the world. There is money for nearly every business.
• Doublecheckthatyouaremaximisingyourentitlementsunderthe various categories. Both Federal and State.
• Ensurethatyoumeetthedeadlinesforlodgementandwagepayment to ensure that you trigger all subsidy payments.
• Checkthatyouraccountingandpayrollsystemsareproperly managed.