I’m Ashley Thomson, Managing Director of Tenfold. I want to keep you up to date with what’s happening in the business environment and, along with our coaches, equip businesses to weather the storm.
I’ll be creating regular updates of what we know that can help businesses. No hysteria or false optimism, just real insight and practical info.
All Tenfold coaches are currently working on individualised COVID-19 plans specific to each client.
In this update:
• Managing cash flow
Managing cash flow
The priority in the short term is to manage cash flow because cash is the lifeblood of business. In this type of crisis, the bottom 5% of businesses will not survive. Harsh but true. Your goal is simple: don’t be in the bottom 5%.
For many businesses, some major cash flow items are:
• Loan repayments
• Tax obligations
If your business can get some breathing room on these items, it should go a fair way to riding out the next couple of weeks/months. From there you’ll have a clearer picture. Here are some options to assist with cash flow:
There are provisions in the Fair Work Act to allow employers to “stand down”. Stand down refers to when an employee can’t do useful work due to an occurrence that the employer can’t control, such as a pandemic.
Coaches are able to help you assess how this may apply to your business and employees, and explore options such as:
• reduced hours,
• allowing staff to take paid annual leave,
• working from home or another work site that is low-risk of infection.
You can also read more about stand down provisions on the Fair Work website here: https://www.fwc.gov.au/industrial-action-benchbook/payments-relating-industrial-action/standing-down-employees
And here: https://www.fairwork.gov.au/pay/pay-during-inclement-weather-and-stand-down#what-is-stand-down
Major Australian banks are being understanding of how this situation is impacting small business. Here are what the Australian banks have committed to so far in relation to loan repayment deferrals.
Some businesses may be able to get at least 4 months deferral.
Tax Payments / ATO
Similar to the banks, the ATO is also offering support measures to assist businesses through these unprecedented times. Here is what the ATO is publicising:
We are here to support businesses through these challenging times.
As a snapshot, yesterday’s blog included:
• Upside: what the past has taught us
• Advice for Communicating
• Staff Health
• How to Prepare for Business Continuity
• Federal Government Financial Support
• Practical tips for Finance and Cash Flow Management
• Supply Chain Stabilisation
• Other Practical Tips
Read it here: Coronavirus: Protecting the Health of Your Business, Team and Clients