“It’s tough. It’s challenging. But, it’s something you can get through if you plan ahead. And, now is the time to do the planning to make it through the other side.
“This is the first recession Australia has seen in 29 years and for many business owners, this is the first time their business has had to navigate such grim waters. With constant news about the economic downturn, it’s hard not to panic. However, that is the worst thing you can do. Stress can reduce your ability to think creatively and strategically. Right now these skills are key.
“The first thing business owners need to do is analyse all their costs without factoring in the economic stimulus they may be receiving from the government or banks, and see where they stand. Are you able to afford to pay all your employees without the job keeper payments? Have you been paying your loan repayments on time or have you deferred them? These are the kinds of questions you need to ask yourself. After analysing costs, cut down on everything that is nice to have, and set up a budget. Use this budget strictly and constantly look at ways to reduce costs. Be responsive to your financial situation and take control of it.
“The next key thing is to look at areas of your business which are excelling, where there is potential for growth. Choose the area where there is growth potential and pivot to it. Diversify without spending extra money. By being creative you can diversify your business and generate extra streams of revenue.
“Finally, lock in your contracts right now. Now is the time to lock in contracts and new agreements, when rates are still low and there are many provisions available to help small businesses. Use these provisions to your advantage by locking in agreements for at least the next 6-12 months. Be prepared and ready. It’s a tough road ahead but it will be possible to overcome the hard months ahead if you persevere and stay focused.”
About the Author:
Nick is an author, radio host, and freelance writer.