Strategies and advice for businesses to stay in control through COVID-19 and get ahead of the pack

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COVID-19 Business Continuity – 27th April

I’m here with the COVID-19 business continuity update for Monday 27th April.

In today’s update:
1. JobKeeper: The government makes it easier and easier to qualify
2. Where the opportunities might be

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1. JobKeeper: The government makes it easier and easier to qualify

It’s becoming apparent that the government is keen for as many businesses as possible to be eligible for JobKeeper or become eligible over the next six months. My perspective of the JobKeeper scheme is that it is unlike many other government programs we’ve seen in the past, where the criteria was tight and eligibility was only open to a narrow section of businesses. With some of the announcements last week, I’m reading that the criteria is pointing towards inclusion rather than exclusion.

Here are the signs I’m picking up that indicate an inclusion angle:
– The alternative tests open the door for businesses that have been growing strongly to become eligible for JobKeeper sooner that might be expected.
– The announcement of the extension date to enrol for JobKeeper gives us more time to assess eligibility for the month of April, especially seeing as we’re expecting more details to come on the application of the alternative tests.
– Businesses have the option for measuring monthly (March or April) or quarterly.
– Furthermore, businesses can measure on a cash or accrual basis.

What this means for you is: have a serious look at if/when JobKeeper is going to become an option for your business.

Details on the specifics keep coming in at a fast pace; As a firm, Tenfold is right across this program so keep talking to your business coach.

Reminder: if you think you might be eligible for JobKeeper in April, you’ll need to make any top up payments to eligible JobKeeper employees by 8th May. If you’re concerned about paying out wages that you may not be eligible to be reimbursed for, speak to a Tenfold Business coach and they can take you through the process to protect your business.

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2. Where the opportunities might be

I know many businesses are only focusing on what’s directly in front of them at the moment while they navigate the effect of coronavirus on the business landscape. At some point soon the dust will settle and we’ll need to start looking further ahead at where the opportunities might be. I recommend that the most useful way of thinking about where to identify opportunities is this: follow the money.

There are calls from many experts for the government to invest in social housing. At this point, we don’t know if that’s on the government’s plans for the road back but if it were, it would tick a lot of boxes, namely;
– It would provide much-needed housing for people struggling with short-term and long-term homelessness;
– It would put money into a sector of the building and construction industry that would have flow on effects to other areas of the economy.
– If we were to further speculate that social housing could be delivered through manufactured construction (pre-fab), then it would tick another box of enabling the money to flow even faster and in a productive manner.

When we apply the thinking of “follow the money” in the scenario of manufactured housing, we’d look at all stages of the chain:

– In the offsite construction, we’d see an increase in the manufacture of inputs (for example, EPS panels) (a second-tier flow on could be increased maintenance on electrical and machinery);
– Onsite, we’d see money go to excavation and earthmoving and underground works;
– Next, we’d see utilisation of pilot trucks to transport the modules to site and cranes to unload;
– Following that, the money would flow to licensed trades (electricians, plumbers, roofers);
– Trades would then be brought in for the finishing: tiling, painting, flooring, and exteriors (landscaping);
– At each step, the money flows to business, labour, materials, support services.

These are the opportunities where the money will trickle down through the economy; our goal as your team of business mentors is to make sure you’re at the front of the line when it does start flowing. A lot of our research at Tenfold is now focused on looking forward and predicting where the opportunities are going to appear after coronavirus. Stay tuned as I explain more on this in future briefings.

Have a great week.

Ash

Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Managing Director
Tenfold Business Coaching

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