Business Action Plan Checklist
We are getting inundated with clients looking for help as the COVID-19 pandemic tracks towards being the greatest social upheaval the world has seen since World War II. The updates and announcements are coming at a breakneck speed.
It’s not easy to stay calm at this time but we are here to help you and we will continue to post regular updates.
It’s become clear that some industries will be more severely impacted than others and the most common question we are getting from clients is, “What do we do next?” In response, we have put together an action plan checklist.
It is vital that you act quickly and decisively and work your way through this action plan. There are cash incentives, loans and tax payment
deferral strategies to consider. Of course, feel free to contact us by phone or email as face to face meetings are no longer available.
Here are practical steps to consider right now:
Get Your Records Up To Date
This is priority one. Up to date, accurate financial records allow us to work together to make informed business decisions. By preparing
interim financial statements to March 31, 2020 we can:
Build a Cash Flow Forecast for the next 12 months and keep updating it at least every month as you get more information about revenue and costs.
Cash flow is the lifeblood of any business and it just became critical. The main reason most business owners prepare a cash flow forecast is
to raise finance but right now it needs to identify how much money you will need and when. The forecast will project your bank balance at
the end of every month.
To produce your cash flow statement, the starting point is to extract last year’s cash flow report from your accounting software. Project your likely receipts including any government stimulus payments. This won’t be easy but depending on your industry, you might need to work on a decrease of between 25% and 60% or possibly more, of sales.
Work through your fixed costs (rent, insurances, subscriptions, loan and lease repayments etc.) and then consider your staff requirements and calculate your anticipated wages. Next, plug in your variable costs like direct materials, stock, commissions, freight etc.
A cash flow budget template is available to download from the resources tab of our website.
There are a range of government benefits available that we have detailed in previous newsletters. The key items include:
You can read more about the loans on offer here
Consider ATO Payment Deferral Concessions
The ATO assistance in this area is not automatic, so you will need to approach them for assistance. If eligible, the ATO will ‘tailor’ the assistance package for you. Please contact us if you need guidance in this area.
The ATO payment deferral concessions include:
At the moment it’s probably not high on your agenda, however, marketing remains important. Your competitors are probably rattled so this is an opportunity. The most important thing right now is communicate with your customers and clients. Remember, they are in the same boat as you and sailing in turbulent unchartered waters.
Anything you do to help them might be rewarded with some loyalty down the track. Digital marketing is cheap so send an email, produce a short video, write some blogs or produce an e-Book or newsletter. The shut down and lock down period can be used to develop your marketing plan for the next few months. It could be as simple as forwarding them this checklist or our Recession Proofing e-Book that we sent to you earlier in the week.
We are understandably being inundated by concerned clients and this checklist is designed to help you develop a plan. Working through this checklist will give you structure and a sense of direction that will help you remain as calm as possible in the circumstances.
Take care, stay safe and contact us for assistance.