5 Steps to Take for Your Business to Survive COVID-19 – Our Guide
During these past few months, a lot of the sectors of the global economy took a hit and have been paralyzed due to the COVID-19 pandemic. As a business owner, it can be tough to navigate the market during a global crisis, especially when most consumers are self-isolating.
While the times are dire due to the viral outbreak, your business doesn’t have to suffer major negative impacts due to the virus. Here’s how you can keep your business alive during these trying times:
1. Determine your financial capacity
Planning is crucial in order to survive challenges like COVID-19. Assess your current financial situation and determine how liquid your business is. By doing this, you’ll have the information you need to create a strategy.
Figure out how much you’ll need to address pending government restrictions or requirements and outstanding debts. You’ll also need to set a budget to keep your employees and to ship items if possible. Work with your accountant and organise a financial plan in order to overcome financial challenges, especially the risks.
2. See if you’re eligible for government assistance
Most businesses are now entitled to the financial assistance package from the Australian Government. However, there are a few requirements, which you’ll need to check to ensure eligibility.
The financial assistance aims to help lessen the blow of the pandemic to business owners and keep their livelihood operational. The aid is extremely useful, so do your best in claiming it as soon as possible.
3. Be transparent
Communication is essential for any business, especially during a global crisis. Your stakeholders need to know what’s happening and how you’re trying to keep your business going for their sake.
Your employees are entitled to know what your strategies are. This way, they’ll know how impactful your decisions will be on their stand. Your customers will also need assurance regarding purchases and orders, or how they can reach you amidst this crisis. Investors and debtors need to know the situation of your business. By explaining to them, you’re opening up the possibility of negotiating for better terms.
Most importantly, keep in mind that everyone is affected by the viral outbreak, therefore, constantly communicating with your stakeholders is greatly appreciated.
4. Consider tax deferral
For certain tax obligations, you can choose to defer them to lessen your financial burden. The Australian Tax Office grants businesses that are suffering the impacts of COVID-19 a tax deferral. However, tax deferral can waive your business’s eligibility for other assistance options. It’s highly advisable to seek professional help before choosing to defer taxes.
5. Apply for a business loan
For most small businesses, their finances are already cornering them at a tight spot, leaving almost no room for risk management. If you find that your business is financially incapable of certain processes, consider applying for a business loan.
Since the impact of COVID-19 is felt by many businesses, they can utilise business loans to help increase their functionality during these hard times. You’ll no longer be as limited to certain expenses anymore, and you’ll have the ability to increase your capital, keeping your business in optimal health even during an economic imbalance.
A business owner has to be flexible and should know how to find ways for the betterment of their company. Such threats like COVID-19 might make it difficult to navigate the market, but surviving it is not impossible. A business loan will add to the convenience of keeping your business operational amidst the pandemic.
Our team of experts is here to listen! If you’re interested in applying for a business loan, get in touch today to learn how.